The Middle East has traditionally remained conservative financially, refusing to dabble in anything related to digital assets.
However, the Gulf region is slowly changing its approach to assets such as cryptocurrencies, non-fungible tokens (NFTs), stablecoins and security tokens.
With several nations welcoming crypto and blockchain technologies, other previous taboo industries such as iGaming could be next to make a breakthrough in the Middle East.
Qatar Launch Digital Asset Regulations
Qatar recently stole the front page of all the prominent business and financial newspapers in the Middle East by launching the Digital Asset Regulations 2024.
From all indications, Qatar’s Emir Sheikh Tamim bin Hamad Al Thani and his government are ready to embrace the digital financial revolution sweeping global markets.
The news is a surprise considering their previous hardline stance on crypto. The country had previously banned crypto as recently as 2018.
The Qatar Financial Centre (QFC) has now laid down the rules and regulations for using digital assets in the country, including tokenisation, property rights in tokens, custody arrangements and the recognition of smart contracts.
This scheme, which was devised by more than 20 start-ups and fintech companies, will provide a clear and structured environment for digital assets to become mainstream in Qatar.
The UAE is Pioneering Digital Asset Innovation
The UAE established its Digital Assets Framework a few years ago and has been pioneering innovation in this area since then.
The Dubai Virtual Assets Regulatory Authority (VARA) and the Abu Dhabi Global Market (ADGM), created rules that allow cryptocurrency businesses to thrive.
Clinq Hold DMCC, Belfrics and Fasset are among the international crypto companies which have been attracted to the UAE, and more will arrive soon.
The UAE’s regulatory framework includes guidelines on licensing, anti-money laundering (AML) compliance and consumer protection.
Their forward-thinking policies have encouraged a thriving crypto ecosystem and set a benchmark for other Middle Eastern nations to follow. This mindset has spilled into other sectors, including iGaming.
The UAE recently issued its first lottery license to The Game LLC and unveiled a new regulatory framework for casino and gambling operations.
The move will allow online casinos to operate legally in the UAE. All of the existing sites which cater to Arab players are currently licensed and regulated in overseas jurisdictions.
However, the iGaming brands listed on respected comparison platform https://haz-tayeb.com/en/ will now be able to acquire licenses issued by a UAE authority.
Lebanon Launches New iGaming Initiative
Lebanon has also moved to embrace the iGaming sector by allowing the Middle East’s only government-licensed online poker platform to team up with a gaming giant.
GGPoker recently announced a new partnership with PokerArabia, which will grant Lebanese players access to the former’s tournament offerings.
This will give the best poker players in the country the opportunity to compete for 33 bracelets at the upcoming World Series of Poker Online 2024 event.
With Lebanon also firmly on the crypto bandwagon, this latest move demonstrates the country’s willingness to adopt modern practices.
Their stance establishes a template that many other Middle East nations may choose to follow to ensure they do not get left behind by their neighbours.
Crypto & iGaming set to Trigger Changes in the Middle East
With some Middle East nations opening the door to embrace concepts they had previously rejected, the landscape Is undoubtedly shifting in the region.
There has traditionally been a resistance to gambling due to religious laws, but with other secular industries gaining a foothold, there may be a change in attitudes.
Integrating cryptocurrencies into mainstream financial systems provides a compelling case for regulating gambling. Digital assets allow players to conduct transparent and secure transactions and address gambling concerns such as fraud and money laundering.
If governments in the Middle East begin to see digital innovation as a tool for economic development, they may also see the benefits of regulating – rather than banning – gambling.
When Qatar announced its crypto ban in 2018, experts would never have envisioned them trying to establish themselves as pioneers of digital assets six years later.
However, with several Middle East governments becoming more open to innovation, they may start to consider their positions in other contentious sectors.
