Though the world has seen widespread crypto adoption in the last few years, but the UAE and Vietnam are leading the way in embracing digital assets. According to data evaluated by Triple A, a global payment gateway for fiat and crypto, 30.4% of the UAE’s population interacts with digital assets. Similarly, Vietnam secures second position as the fastest nation to adopt crypto, with 21.2% of its population participating.
Around 3 million UAE people showing interest in the crypto assets signify the nation’s approach to becoming a global fintech leader. Likewise, Vietnam’s 21.2% population, representing nearly 21 million residents, depicts substantial engagement of the country in digital currencies as a viable avenue of investment.
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Pointing toward increased crypto activities, a Bitget report uncovered that Centralized Exchanges (CEXs) in the Middle East have witnessed 500,000 daily active users since February 2024. Bitcoin Spot ETF and a crypto-friendly regulatory framework played a crucial role in UAE’s mass crypto adoption.
Crypto-friendly Regulations Accelerate Adoption
Moreover, UAE regulatory bodies such as Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) established crypto-friendly rules. UAE even build platforms like Trade Center Arena and allowed tax-free trading services.
Interestingly, Singapore, a developed nation known for its sophisticated financial landscape, remains behind Vietnam in accepting digital assets. Despite its well-praised financial prowess, Singapore achieves an 11.1% score in the crypto adoption rate, which suggests a cautious yet steadily growing engagement with the sector.
Given that, crypto-friendly regulations and developments are behind the rapid adoption of crypto by the UAE and Vietnam. Other jurisdictions Triple A involves in its research include the USA, Iran, Philippines, Brazil, and Saudi Arabia, which have registered a diverse crypto adoption rate.
United States (US), known for its stricter regulatory policy, witnesses 15.6% of its population interacting with digital assets. This figure represents 53 million netizens from the US. Bitcoin and Ethereum, Spot ETF approval, played a pivotal role in achieving this remarkable adoption rate in the US.
Countries like Iran and the Philippines attained 13.5% and 13.4% respectively. Still, this indicates the states’ slow but strong inclination toward crypto as a financial empowerment tool.
Regulatory Amendments During Mainstream Adoption
As crypto technology is to enter the mainstream, the world’s jurisdictions have been updating their crypto rules. For instance, the Monetary Authority of Singapore (MAS) has opted for a more comprehensive approach as it updated its Payment Services Act in April.
The amendments encompass several measures, including custodial services for digital payment tokens (DPTs), supervision of cross-border payments, and transmission facilitation. The improved regulations aim to tackle the increasing risk associated with digital currencies. Similarly, Singapore grants MAS authority to implement effective measures to fight against terror financing, money laundering, user protection, and financial stability.
In this slew, MAS published guidelines for crypto entities providing DPT services within the country. The guidelines rely on consumer protection norms set to take effect on October 4, 2024.
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