The UAE’s Transition into Bitcoin

While the US is leading in Bitcoin accumulation and hashrate distribution, the UAE is starting to develop into a rather big player in the global Bitcoin ecosystem, especially in the Middle East.

Officially, the US holds the most Bitcoin with more than 207k in its fold, but some reports suggest that the UAE holds approximately 420k Bitcoin, valued at around $46 billion. However, there are no official sources to support the claim, as this is more of a rumor that’s been spreading around. Even Changpeng Zhao (former CEO of Binance) shared this news last year on X but eventually deleted that post, likely due to no solid evidence.

Still, the UAE definitely holds some Bitcoin and the country is rapidly advancing its Bitcoin mining capabilities, with an estimated operational capacity of 400 megawatts last year. This accounts for about 4% of the global Bitcoin hashrate.

Semi-governmental projects have been instrumental in expanding mining operations, and the country leverages its vast energy resources, including natural gas and nuclear power to support mining activities.

Interestingly, due to the country’s hot climate, advanced cooling systems (such as immersion tanks) are employed to combat the heat.

The UAE has implemented several regulations, with some cities like Dubai having their own. On the federal level though, the Securities and Commodities Authority (SCA) oversees the regulation of crypto assets, requiring entities to obtain necessary approvals and licenses.

Also, the Middle Eastern country is actively integrating blockchain technology into its financial systems, with the most recent news being when Abu Dhabi’s MGX fund invested $2 billion in Binance in March.

US as the top crypto player

All in all, UAE is shaping up to be a prominent player in the global Bitcoin and cryptocurrency landscape, thanks to its advanced infrastructure and mining capabilities.

Whereas the UAE is the leader in the Middle East, the US has positioned itself as the dominant power when it comes to Bitcoin and crypto globally. CryptoRank (crypto industry research and analytics platform) reported that the US controls 36% of the global Bitcoin hashrate and that 94.8% of Bitcoin held by public companies is in the hands of the US firms.

Additionally, 36 out of 50 states have introduced pro-Bitcoin legislation.