The Middle East, North Africa, and Türkiye (MENAT) region is emerging as a powerhouse in cryptocurrency adoption. Between July 2021 and June 2022, MENAT led global digital asset growth, with users receiving over $566 billion in crypto value—a 48% year-on-year increase, according to Chainalysis. Although on-chain transaction volume dipped to $389.8 billion the following year, momentum remains strong. With rising inflation, youth-driven digital engagement, and increasing government interest in blockchain technology, the region is poised for continued expansion in 2025 and beyond.
This article explores the top five MENAT countries driving crypto adoption, analyzing the economic, regulatory, and technological forces shaping their digital futures.
Türkiye: Crypto as a Hedge Against Inflation
Türkiye stands out as one of the most active crypto markets in the region. Since 2020, crypto adoption has surged by 24%, with nearly half the population now owning digital assets. The country ranks above the global average in centralized exchange (CEX) activity, signaling deep retail engagement.
Economic Pressures Fueling Adoption
Skyrocketing inflation—peaking at 64.8% in December 2023—has eroded trust in the Turkish Lira, which lost 44% of its value between 2021 and 2022 and hit record lows in 2023. As traditional safe havens like the US dollar and gold become less accessible, many Turks are turning to cryptocurrencies as an alternative store of value.
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Youth and Innovation Driving Change
With 15.2% of its population aged 15–24—well above the EU average—Türkiye boasts a tech-savvy youth demographic. Studies show that individuals aged 18–30 are among the most active crypto traders, particularly on platforms offering localized services.
Regulatory Evolution on the Horizon
While past exchange collapses like Thodex and Vebitcoin have damaged trust, new regulatory proposals from late 2021 aim to introduce licensing, taxation, and Proof of Reserves requirements. A clearer legal framework could boost confidence and attract institutional participation.
United Arab Emirates: A Regulatory Beacon for Web3
The UAE has positioned itself as a global leader in crypto innovation through proactive regulation and strategic investment. Home to both the Abu Dhabi Global Market (ADGM) and Dubai’s Virtual Assets Regulatory Authority (VARA), the country offers a structured yet flexible environment for digital asset businesses.
In January 2024, OKX became one of the first global exchanges to secure a Virtual Asset Service Provider (VASP) license from VARA, enabling compliant exchange operations in Dubai.
Why the UAE Leads in Public Adoption
The UAE shares the top spot globally for public crypto adoption, alongside Singapore. This success stems from:
- A pro-innovation government culture
- Supportive regulations for exchanges and Web3 startups
- Easy access to peer-to-peer (P2P) trading and decentralized finance (DeFi)
Dubai’s Emirates Blockchain Strategy 2021 aimed to move 50% of government transactions onto blockchain—a goal that laid the foundation for broader digital transformation.
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Challenges Amid Growth
Despite its leadership, the UAE faces complexity due to its seven emirates operating under separate regulatory bodies. Additionally, growing competition from Saudi Arabia and other Gulf states may challenge its dominance unless it continues innovating.
Morocco: Grassroots Adoption Despite a Ban
Morocco ranked 20th globally in Chainalysis’ 2023 Geography of Cryptocurrency Report—the second-highest in MENAT—despite an official ban on crypto trading. Yet peer-to-peer transactions continue to grow, driven by demand for financial alternatives.
In December 2022, Bank Al-Maghrib announced a draft bill to regulate cryptocurrencies, signaling a potential policy shift.
Financial Inclusion as a Catalyst
Only 44% of Moroccan adults have bank accounts, leaving a vast unbanked population vulnerable to economic exclusion. Cryptocurrencies offer a path to financial inclusion—especially if paired with improved internet access and financial literacy programs.
While inflation has remained relatively low (averaging 1.7% from 2012–2022), the Moroccan Dirham’s partial peg to the US dollar makes it susceptible to external shocks, prompting some to explore crypto as a hedge.
Overcoming Cash Dependency
Morocco is the world’s most cash-reliant country, according to Merchant Machine. Transitioning toward digital finance—whether traditional or crypto-based—requires overcoming deep-rooted cultural preferences for physical money.
Egypt: Remittances and Inflation Driving Crypto Use
Egypt ranks 35th globally in crypto adoption but is one of MENA’s fastest-growing markets. Two key factors are driving this surge:
- Currency Devaluation: The Egyptian Pound fell nearly 20% against the US dollar in early 2023, pushing citizens to seek value-preserving alternatives.
- Remittance Flows: Egypt ranked sixth worldwide in remittance inflows in 2023. Crypto enables faster, cheaper cross-border transfers compared to traditional channels.
Blockchain Beyond Crypto: Real-World Applications
Even as crypto trading faces legal restrictions, Egypt has embraced blockchain technology. The Advance Cargo Information (ACI) system, launched in 2021, uses blockchain to streamline customs processes—reducing processing times by 55%.
This shows a growing openness to cryptographic tools, even if full-scale exchange legalization lags behind.
Saudi Arabia: Vision 2030 and Web3 Ambitions
Saudi Arabia may restrict crypto trading—banks cannot process virtual currency transactions—but its Web3 ambitions are undeniable. As part of Vision 2030, the kingdom is investing heavily in next-generation technologies.
Youth and Institutional Interest
With 63% of its population under 30, Saudi Arabia has a powerful demographic engine for digital innovation. Retail interest in crypto is high, and institutional involvement is growing.
Between July 2021 and June 2022, Saudi Arabia recorded the highest year-on-year growth in crypto transaction volume globally.
Strategic Web3 Investments
- Project Aber: A joint central bank initiative with the UAE exploring cross-border settlements using distributed ledger technology.
- NEOM x Animoca Brands: A $50 million partnership to build Web3 enterprise solutions, starting in NEOM and expanding globally.
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Despite these moves, regulatory progress remains slow. Budget constraints may delay formal crypto frameworks, but long-term potential is immense given Saudi’s economic scale and strategic goals.
Frequently Asked Questions (FAQ)
Q: Which MENAT country has the highest crypto adoption rate?
A: The United Arab Emirates ranks among the highest globally for public crypto adoption, sharing the top spot with Singapore.
Q: Is crypto legal in Morocco?
A: Crypto trading is currently banned in Morocco, but peer-to-peer activity persists. A draft regulatory bill was announced in 2022, suggesting future legalization may be possible.
Q: Why are people in Türkiye using crypto?
A: High inflation and currency devaluation have driven Turks to use crypto as a hedge against economic instability.
Q: How is Egypt using blockchain technology?
A: Egypt uses blockchain in its Advance Cargo Information (ACI) system to improve customs efficiency and trade logistics across ports.
Q: Can you trade crypto in Saudi Arabia?
A: There is no formal regulatory framework, and banks cannot process crypto transactions. However, individuals still access international platforms, and institutional Web3 projects are advancing rapidly.
Q: What role does regulation play in MENAT crypto growth?
A: Clear regulation—as seen in the UAE—boosts trust and adoption. In contrast, restrictive or unclear policies slow growth but don’t stop grassroots interest.
Final Thoughts
The MENAT region exemplifies the dual forces shaping global crypto adoption: economic necessity and technological ambition. From Türkiye’s inflation-driven demand to the UAE’s regulatory leadership, Morocco’s financial inclusion potential, Egypt’s remittance innovation, and Saudi Arabia’s Vision 2030-powered Web3 push—the region is diverse yet unified in its forward momentum.
While challenges remain—from regulatory fragmentation to cultural resistance—the trajectory is clear: crypto and blockchain are becoming integral to MENAT’s economic future. As infrastructure improves and policies evolve, expect deeper integration across finance, trade, and governance in the years ahead.