Thursday 28 October 2021

Cryptocurrency market cap up 86% this year; hits $1.4trn

DUBAI, September 23, 2021

The UAE is poised to be a global hub for cryptocurrency as market capitalisation hit $1.4 trillion, up 86% year to date, said experts ahead of the AIM Summit running from October 11– 12 in Dubai, UAE.

The world’s leading alternative investment summit, global and regional pioneers Coinbase, BitOasis and Matrix spoke of how this space is growing in the region and of the regulatory policy being laid out in preparation to service these demand needs.

“Cryptocurrency adoption in the Middle East is higher than it’s ever been. On the BitOasis platform, we’ve seen transaction volumes exceed $3 billion in the first half of 2021. User signups have also soared, effectively doubling our platform’s user base in the last six months,” said Srinu Chowhan, VP Marketing & Growth, BitOasis.

“This emerging sector is growing in breadth and depth during a period of pandemic-driven turbulence and unprecedented economic policy interventions. Prices declined nearly 50% between April and July, yet more than US$2 billion of investment was allocated to the sector in August. Underneath all of that, technical and financial innovation is flourishing. The world is realizing what many of us have known for a while: virtual assets are here to stay,” added Terry Culver, CEO Matrix.

On a more global level, Coinbase has continued to witness strong demand from their institutional practice.

“Coinbase’s institutional practice saw strong demand from institutional investors in the first half of the year, continuing momentum from 2020. The first half of 2021 significantly improved Ethereum’s five-year performance, bringing the asset’s total return to 17,962% for the period with many of our largest institutional clients, including hedge funds, endowments, and corporates, increased or added first-time exposure to ETH,” said John D’Agostino, Director, Institutional Sales and Strategic Accounts, Coinbase.

While the region prepares to deliver on this largely unmet demand, there are also significant inroads being made on the regulatory framework to ensure that transparency and trust form the foundation for the long-term growth.

“With growth comes regulation. It is a necessary stage of development for the sector, and the recent and ongoing regulatory changes are significant. For example, the policies in the US regarding tokens as securities or in China regarding mining have had an immediate impact, and the sector is adapting quickly. This is one reason we choose to launch Matrix in ADGM. The ADGM (Abu Dhabi Global Market) virtual asset policy framework is thoughtful and clear, and sets a high standard. It enables us to build our business with confidence that we are protecting our customers,” added Culver, CEO Matrix.

“Since our launch in 2015, we have been working very closely with policymakers and regulators to build trust and transparency into the crypto ecosystem. BitOasis meticulously self-regulated to ensure the platform was at par with some of the best digital asset exchange platforms in the world. This has also helped regulators recognize us as an established and trustworthy entity, making them open to have that regulation-building conversation with us. We are also constantly working with regulators to refine and enhance our product offering, thus helping us shape a more efficient crypto ecosystem,” added Chowhan, VP Marketing & Growth, BitOasis.

On a more global level, regulation remains equally paramount. Coinbase plans to roll out an alternative strategy to address the growing demands in broader international markets.

“We put a huge amount of effort into working with regulators in the US, UK, EU, etc. which has generated an enormous amount of value for customers in these regions, but it can also lead to products that are hyper focused on the western world. We’re going to flip this approach on its head by shipping more products in international markets on day one, while still partnering with regulators in more established markets to ensure our products are compliant with their local rules,” concluded D’Agostino, Director, Institutional Sales and Strategic Accounts, Coinbase.

D’Agostino, Culver and Chowhan will be delving further into the complex world of digital assets at the 11th edition of the AIM Summit on from October 11– 12 at the Jumeirah Emirates Towers at the Dubai International Financial Centre (DIFC). Also in attendance will be representatives from Tezos, Invictus Capital, RChain, Hut 8 and CasperLabs. – TradeArabia News Service


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