James Atkins
Editor
Editor
Talal Tabbaa, CEO and co-founder of CoinMENA, a supervised cryptocurrency exchange based in Bahrain. Says that the Middle East is becoming increasingly appealing to crypto firms because of its present strong regulations.
He told Arabian Business: “I think the Middle East in general, and Bahrain in particular, is becoming an attractive destination for crypto companies. The reason for that is because there are quite a few exchanges that have now been regulated by the Central Bank of Bahrain.”
“I think it’s quite clear that exchanges are going to be regulated in most jurisdictions around the world. And I think the Middle East is no different,” he states.
During a recent interview with Zawya, Talal mentioned this. When asked why crypto exchanges are establishing offices in the Middle East, he says;
“Regulation and demographics are the two major factors affecting it. The Central Bank of Bahrain was the first in the region to grant onshore digital asset exchange licenses, which is why we established our headquarters there.”
In June, the UAE set up the new Virtual Asset Regulatory Authority (VARA). An outfit designed particularly to supervise and monitor virtual and crypto assets. With this regulatory clarity, cryptocurrency firms have relocated to the area. Talal adds that;
The second consideration is demographics. The Middle East has one of the world’s youngest populations, which means they are more likely to adopt new technologies rapidly. We saw this with the Internet and cellphones, where the region has one of the highest adoption rates. As a result, this market presents a lot of possibilities as a founder.”
The cryptocurrency market is in a bear trend, and Talal thinks this is par for the course. He feels that cryptocurrencies are the future of finance and that there will be more growth in the years ahead. The CoinMENA CEO states;
“This is nothing new for crypto as it goes through bull and bear phases every four years. It’s somewhat unusual this time because of the global macroeconomic circumstances that are affecting all asset classes, including crypto. There are only 4 percent of the world’s population who own cryptocurrencies, which is the same proportion as in the late 1990s.
I believe that the number of crypto investors will continue to rise in the next decade. To your question, it’s hard to say if the worst is over now because the market is going through difficult macro circumstances as a result of the US Federal Reserve raising interest rates to curb inflation. In the long term, I see cryptocurrency as a potential replacement for traditional currencies, and I anticipate more widespread adoption in the future decade.”
CoinMENA is a cryptocurrency exchange that is licensed by Bahrain’s central bank. And is among the fastest-growing trading platforms in the country. The company has plans to expand its services to the UAE soon.
The firm was one of the first exchanges to be licensed by the Central Bank of Bahrain. And Tabbaa believes that this gives the company a “first mover advantage” in the region.
“The UAE is a natural next step for us,” he says. “There is a huge demand for cryptocurrency trading in the region, and we want to be able to meet that demand.”
Tabbaa adds that the company is also looking at expanding into other countries in the Middle East, such as Saudi Arabia and Kuwait.
“The Middle East is a very exciting market for us,” he says. “There is a lot of interest in cryptocurrency trading, and we believe that there is a lot of growth potential; in the region.”
Do you share the same views with Talal? Let us know what you think in the comments section!
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
