Cryptocurrency Adoption in the Middle East and North Africa: Trends and Insights

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The Middle East and North Africa (MENA) region has emerged as a pivotal force in the global cryptocurrency landscape. According to Chainalysis' 2023 Geography of Cryptocurrency Report, MENA ranked as the sixth-largest crypto economy, with approximately $389.8 billion in on-chain transaction value recorded between July 2022 and June 2023—accounting for nearly 7.2% of global activity.

Three countries from the region made it into the top 30 of the Global Crypto Adoption Index: Turkey (12th), Morocco (20th), and Iran (28th). Turkey leads in transaction volume, but each nation exhibits unique adoption patterns shaped by economic conditions, regulatory environments, and user behavior.

This article explores how macroeconomic pressures, forward-thinking regulation, and digital innovation are driving cryptocurrency use across key markets in the MENA region.

United Arab Emirates: How Forward-Looking Regulation Is Building a Global Crypto Hub

The United Arab Emirates (UAE) has positioned itself as a leading destination for blockchain innovation, thanks to its proactive and adaptive regulatory framework. From Dubai’s early blockchain strategy launched in 2016 to Abu Dhabi establishing the world’s first crypto-specific regulatory structure in 2018, the UAE has consistently stayed ahead of industry developments.

In 2022, Dubai created the Virtual Assets Regulatory Authority (VARA), a dedicated body overseeing virtual asset services within the emirate. This was followed by federal-level crypto regulations that empower regional regulators like VARA to maintain economic free zones conducive to technological innovation.

👉 Discover how regulatory clarity is fueling crypto growth in one of the world’s most dynamic markets.

Akos Erzse, Senior Public Policy Manager at BitOasis—a Dubai-based cryptocurrency exchange—highlighted VARA’s comprehensive regulatory framework introduced in February 2023. “VARA brought a new level of forward-looking regulatory clarity to the region, attracting numerous players to set up operations in the UAE,” he said.

What sets VARA apart is its granular approach: distinct rules govern staking, brokerage, advisory services, and custodianship. This specificity allows businesses to clearly understand compliance requirements for different activities. Notably, recent amendments now permit custodians to stake assets under management—a move Erzse credits for enabling faster innovation.

With increasing global regulatory competition among jurisdictions aiming to become crypto hubs, the UAE’s responsive and business-friendly environment gives it a strategic edge. It not only attracts international firms and entrepreneurs but also appeals to high-net-worth individuals seeking regulated access to digital assets.

Looking ahead, Erzse is optimistic about emerging use cases like asset tokenization. TOKO, a platform focused on real-world asset tokenization, recently received approval from VARA to operate in the UAE—signaling growing institutional interest in advanced blockchain applications.

Another key driver of crypto adoption in the UAE is remittances. As a major hub for migrant workers from India, Pakistan, and the Philippines—countries all ranked in the top 10 of Chainalysis’ adoption index—there’s strong demand for fast, low-cost cross-border transfers. While many already use crypto informally to send money home, Erzse anticipates the emergence of regulated remittance products under VARA’s oversight.

Turkey: Inflation Drives Surge in Cryptocurrency Adoption

Turkey ranks 12th globally in crypto adoption and fourth in total transaction volume, with around $170 billion in transfers received over the past year—trailing only the U.S., India, and the U.K.

Yasin Oral, CEO and founder of Turkish exchange Paribu, attributes this high adoption rate to a combination of macroeconomic instability and growing youth interest in technology. “Due to tight monetary policies globally, it’s been a tough year—and Turkey hasn’t been immune,” Oral explained. “People are turning to cryptocurrencies as alternatives for value storage and portfolio diversification.”

Turkey’s persistent inflation crisis has intensified this trend. In August 2023, inflation neared 60%, while the Turkish lira hit historic lows against the U.S. dollar. After an unexpected 100-basis-point rate cut by the central bank in 2021, the lira plummeted and has yet to recover.

Data shows clear spikes in USDT purchases coinciding with currency devaluation. For example, demand surged in late March 2023 amid expectations of further depreciation regardless of election outcomes. Another peak occurred in late July following renewed market anxiety and anticipation of central bank announcements.

Notably, USDT is the most traded cryptocurrency against the lira on global exchanges—a testament to its role as a digital store of value amid currency instability.

While stablecoins dominate, Turkey also leads the MENA region in NFT platform traffic. Artists like Refik Anadol—one of the pioneers of AI-generated immersive art—helped spark local interest in digital collectibles. Platforms such as Paribu supported this wave by integrating NFT marketplaces.

Despite recent market downturns reducing NFT activity overall, Oral remains confident in their long-term potential: “NFTs and utility tokens will be critical in shaping innovation across retail, entertainment, and art. Turkey is poised to become a key center for blockchain solutions.”

Saudi Arabia: Leading Global Growth in Year-Over-Year Crypto Transactions

Saudi Arabia recorded the highest year-on-year growth in crypto transaction volume among all countries studied—an increase of 12.0%. It was one of only six nations to show positive growth during the reporting period.

Abdulmajed Alhamzah, General Manager at Saudi exchange Rain, notes rising retail and institutional interest. “Individual investors are increasingly adopting crypto for portfolio diversification,” he said. “Many have experience with real estate or stocks and see digital assets as the next frontier.”

Institutional engagement is also growing. Many corporate clients view cryptocurrencies as a legitimate asset class that adds resilience to investment strategies.

This shift comes despite an official warning issued by Saudi authorities in 2018 declaring Bitcoin illegal. However, the market continued expanding organically. In 2022, the Saudi Central Bank appointed tech entrepreneur Mohsen Al Zahrani as its “Crypto Sheikh” to lead digital transformation efforts.

Moreover, Saudi Arabia is actively exploring Web3 and blockchain gaming initiatives as part of its broader economic diversification strategy under Vision 2030. One notable project involves collaboration with The Sandbox to develop experiences in the metaverse.

“Regulators across the region are working to build robust frameworks that foster innovation while protecting users from fraud,” Alhamzah emphasized.

👉 Explore how economic diversification is opening new doors for blockchain adoption in emerging markets.

Future Growth Potential Across MENA

The MENA region's crypto adoption is driven by diverse yet interconnected factors:

Countries like the UAE demonstrate how clear regulations can transform a nation into a global crypto hub. Meanwhile, economic pressures in others are accelerating grassroots adoption.

As regulatory clarity improves and use cases expand—from remittances to tokenized assets—the MENA region is well-positioned for sustained growth in blockchain innovation.

Frequently Asked Questions (FAQ)

Q: Why is crypto adoption high in Turkey?
A: High inflation and currency devaluation have led many Turks to adopt cryptocurrencies—especially stablecoins like USDT—as a hedge against financial instability.

Q: What makes the UAE a crypto-friendly country?
A: The UAE offers clear, granular regulations through bodies like VARA, supports innovation via free zones, and attracts global talent and capital with its business-friendly policies.

Q: Is Saudi Arabia supportive of cryptocurrency?
A: While Bitcoin was declared illegal for payments in 2018, Saudi Arabia is increasingly engaging with blockchain technology through institutional appointments and Web3 initiatives aligned with Vision 2030.

Q: Which countries dominate crypto activity in MENA?
A: Turkey leads in transaction volume, the UAE excels in DeFi and regulatory innovation, and Saudi Arabia shows the fastest year-on-year growth.

Q: How does remittance influence crypto use in the UAE?
A: With large expatriate communities from highly crypto-adoptive countries like India and Pakistan, demand for fast, low-cost cross-border transfers drives informal—and soon possibly regulated—crypto remittance services.

Q: Are NFTs popular in the Middle East?
A: Yes, particularly in Turkey, which leads MENA in NFT platform traffic due to local artist engagement and platform support from exchanges like Paribu.

Core Keywords

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