Trump’s Crypto Policy Could Have a Major Impact on the Middle East

The cryptocurrency market in the Middle East and North Africa (MENA) region recorded impressive growth over the past year.

Bitcoin snatched the spotlight with a stunning 120 percent rise through 2024, which catapulted the global crypto market capitalisation to nearly $3.8 trillion.

The MENA region were the biggest winners from Bitcoin’s mind-boggling surge. It became the seventh-largest crypto market in the world, accounting for 7.5% of global transaction volume.

The crypto surge was a major eye-opener for many people, especially those in leading economies such as the United Arab Emirates (UAE) and Saudi Arabia. 

They are now switching from centralised exchanges to decentralised finance (DeFi) platforms, which are becoming increasingly popular across the region.

That shift suggests many crypto enthusiasts are willing to take a chance on blockchain technology, which has long been tipped to redefine the structures of traditional finance.

Aside from local developments, the result of the United States election also played a huge role in the crypto surge.

President Donald Trump’s return to the White House sent ripples across the global digital finance landscape, and the MENA region was no exception.

Trump’s Influence on the Middle East’s Crypto Market

Trump’s return for a second term as US president paved the way for the country to revisit their policy on crypto, especially with technology billionaire Elon Musk as his right-hand man.

With the US widely considered the flagship of excellence, others are likely to follow in their footsteps, which explains why Middle Eastern nations are also revisiting their respective regulatory frameworks.

Trump is committed to establishing clear, well-defined crypto regulations that will bolster the presence of the US in the global market and lure foreign investors and businesses Stateside.

That ambition provides a blueprint for MENA regulators to follow – a sentiment industry leaders share. If they successfully implement it, it will help transform the region into a hub for crypto businesses.

Shafah Bar-Geffen, chief executive and co-founder of Israel-based decentralised payments provider the Coti Group is one of many who are of the opinion that the US leads while others follow.

He believes whatever approach Trump takes to establish America as a crypto hub will serve as a guiding precedent for regulatory policies in the MENA region.

A well-structured system works in favour of every party involved and could also be a game-changer for both the US and Middle Eastern economies. 

It will equip regional governments with all the tools they need to draft and implement legislation that would pave the way for more investment from home and abroad.

A clear framework will also incentivise more people to take up an interest in crypto while encouraging other nations across the region to adopt a similar structure.

Trump’s pro-crypto stance has received positive feedback from Wall Street, which is a huge step in the right direction.

Some of the biggest names in the industry such as Goldman Sachs and JPMorgan have wasted no time turning to their rules book and tweaking it to align with the new administration’s vision.

That move has unsurprisingly reverberated throughout the Middle East, with regional banks and investment funds now developing their own digital asset strategies.

What This Means for Online Gambling in the Region

One sector that is poised to be impacted by the Middle East’s newfound interest in crypto is online gambling. 

Any form of gambling is frowned upon in the Middle East, and several nations have doubled down by imposing strict regulations and threatening severe consequences.

However, the United Arab Emirates (UAE) has bucked the trend by breaking free of the shackles of cultural and religious laws to explore the depth of the highly lucrative industry.

Some of the best Arab casinos online are run by foreign operators, but the UAE is currently in the midst of establishing a regulatory framework which will bring the industry under its control.

This will have a knock-on effect to the crypto sector, as many operators offer the blockchain-based current as a payment method to Arab players.

There are several reasons why most punters and gambling platforms are not opposed to the idea of making transactions through crypto.

For one, it offers anonymity, which is important in the modern era – not to mention the added perks of faster transitions, whether that’s making a deposit or withdrawing funds.

Crypto transactions also have minimal regulatory oversight, unlike traditional methods that operate under the watchful eye of the government.

Building a Sustainable Financial Ecosystem

MENA has taken a balanced approach to crypto adoption, which suggests they are more forward-thinking than most.

The immediate impact might be a game-changer for the region’s economy, but their approach proves they are more interested in creating a solid foundation to ensure sustainable growth over a longer period.

MENA’s transaction volume between July 2023 and June 2024 were nothing short of extraordinary, racking up $338.7 billion within that time frame.

Going by those numbers, it is clear that retail traders contribute little to driving crypto adoption, with institutional and professional investors doing all the heavy lifting.

Out of all the recorded transactions, 93% were worth well over $10,000, which also points to the influence of institutional players in shaping the market.

Governments and financial institutions are working towards an integrated financial ecosystem where traditional banking coexists seamlessly with decentralised technologies. 

If they are successful, it could bridge the gap between traditional finance and digital finance.