UAE and Qatar among global leaders in digital asset and crypto regulation
The United Arab Emirates has emerged as one of the world’s most advanced digital-asset markets, according to a new report from the Global Finance & Technology Network (GFTN) in collaboration with Arthur D. Little.
The study, released during the Singapore FinTech Festival 2025, found that the UAE is among the world’s top jurisdictions when it comes to regulated digital finance, ranking alongside Singapore and Switzerland as having the most mature regulatory environment. The report emphasizes that the UAE’s regulatory progress is establishing international standards for innovation, investor protection, and market integrity.
The report covers a wide array of digital finance topics, including digital assets and stablecoins, asset tokenization, crypto exchanges, staking, and DeFi (decentralized finance). The report also highlights some issues related to risk such as illicit finance, privacy and security, as well as emerging technologies such as AI, quantum, and zero-knowledge proofs.
As governments in the GCC region, including the UAE, seek to put effective regulations in place to come out on top of the digital finance industry, stablecoins are a main focus. The report notes that stablecoin transactions have reached $263 trillion globally since 2019, including $40 trillion in the past year.
Regulatory benchmarks and regional progress
The report cites the UAE and Qatar among twelve jurisdictions setting international benchmarks for digital-asset regulation. This achievement aligns with the region’s continuing effort to harmonize digital-asset regulation with global standards.
Within the UAE, specific regulatory bodies are recognized for their activity-based licensing that connects innovation to investor protection: Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA).
The report links the rapid growth in stablecoins and tokenized assets to the introduction of licensing frameworks, regulatory sandbox regimes, and institutional pilots across Gulf markets, with the UAE at the center of this transformation.
Other GCC jurisdictions are also making great headway. For example, Saudi Arabia’s SAMA and Capital Market Authority (CMA) are developing supervisory regimes for tokenization pilots and cross-border payment corridors. In Qatar, the Qatar Financial Centre Regulatory Authority (QFCRA) is progressing frameworks for tokenized-asset applications within existing financial-sector laws.
Market confidence and global trends
The study, which draws on interviews with more than forty regulators, central bankers, and financial executives from Asia, Europe, and the Middle East, finds that investor participation is rising fastest in markets with clear regulatory parameters. The GCC jurisdictions are part of this group, reflecting structured cooperation across the UAE and Qatar to support responsible market development and interoperability.
“The data shows a region that has moved from aspiration to execution. Behind the numbers is a simple reality: Capital follows clarity,” said Sopnendu Mohanty, CEO of GFTN.
He added that GCC regulators are building frameworks designed for longevity, not short-term hype, and their focus on interoperability and real-world tokenization sets them apart from markets still testing the basics.
The report provides a cross-jurisdictional reference for policymakers and financial institutions assessing the evolution of digital money, tokenization, and decentralized finance. It documents how the GCC’s structured approach now ranks among the world’s most advanced regulatory models, providing a foundation for continued cooperation between regional authorities and global standard-setters.
Risks and cyber crime
The GFTN and Arthur D. Little study also provides a detailed examination of financial crime and cybersecurity challenges in the digital asset sector. With a specific focus on the Middle East, the analysis notes that key jurisdictions, including the United Arab Emirates and Qatar, have demonstrated a high global concern for sanctions and export control evasion.
The UAE saw some of the highest amount of stolen value globally, with nearly $80,000 stolen per victim in 2025. The United States, Chile, and India also experience relatively high amounts of money stolen per victim.
Survey respondents in the region ranked sanctions evasion as a top priority, showing a concentrated regulatory effort to prevent the misuse of digital assets for illicit financial activities that circumvent global restrictions.
Both the UAE and Qatar are cited in the report for having implemented crypto-specific anti-money laundering regimes, underscoring the regional commitment to mitigating illicit finance risks and securely anchoring digital asset innovation with robust compliance controls.
