Since the emergence of Bitcoin in 2009, cryptocurrencies have swept the world, revolutionizing the global financial system and becoming a tool for investment and financial exchange in many advanced and emerging economies.
While major countries are racing to regulate and adopt these currencies, the positions of Middle Eastern countries remain varied, ranging from permitting, prohibiting, experimenting, and partial regulation.
In this report, Bitcosat sheds light on the crypto history, the ten most prominent countries in the world adopting it, and the reality of this financial phenomenon in the Middle East.
Crypto history
In 2008, an anonymous person known as Satoshi Nakamoto released the Bitcoin whitepaper, which described a decentralized, peer-to-peer digital currency without the intervention of banks or governments, with a total supply capped at 21 million coins.
The first Bitcoin block was mined in 2009, and the first real transaction took place in 2010. Despite its modest beginnings, Bitcoin’s value quickly rose, and cryptocurrencies began to gain wider attention.
The following years witnessed major challenges, such as the 2014 Mt. Gox hack, which resulted in the theft of thousands of coins.
This led to massive losses and shook confidence in the market. However, this incident helped improve security infrastructure and create more secure centralized exchanges.
During the same period, Ethereum emerged in 2015, introducing the concept of smart contracts and enabling the development of decentralized applications, opening the door to revolutions such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
By 2020, the cryptocurrency market had peaked with Bitcoin hitting its highest price ever, and major institutions like Tesla and MicroStrategy began adopting crypto.
However, the sector has continued to suffer from sharp fluctuations and collapses, such as the UST crisis in 2022.
As government regulations evolve, the crypto future appears to hinge on the balance between innovation and oversight.
Countries and governments’ positions around the world on crypto
As individuals and institutions increasingly rely on digital technology for money and payments, central banks around the world have realized that to remain at the forefront of the financial system, they must keep pace with this transformation by offering a formal digital option. Otherwise, they will have no future in the finance world.
As a result, dozens of central banks around the world have begun developing and launching their own digital currencies, known as Central Bank Digital Currency (CBDC).
Here are the most important developments in this global trend:
- 134 countries and monetary unions worldwide, representing 98% of global GDP, are considering issuing their own CBDC. In May 2020, this number was only 35. Currently, 66 countries are in advanced stages of exploration, development, piloting, or launch.
- All G20 countries are currently exploring the possibility of issuing a CBDC, with 19 of them in advanced stages of this process. Of these, 13 are already in the pilot phase, including Brazil, Japan, India, Australia, Russia, and Turkey.
- All of the original BRICS member states – Brazil, Russia, India, China, and South Africa – are currently experimenting with a CBDC, and BRICS has been promoting the development of an alternative payments system to the US dollar.
- Since the outbreak of the Russia-Ukraine war and the G7’s response to its sanctions, cross-border wholesale CBDC projects have multiplied. There are currently 13 projects, including mBridge, which connects banks in China, Thailand, the UAE, Hong Kong, and Saudi Arabia. This project is likely to expand to include more countries this year.
- The digital yuan (e-CNY) remains the world’s largest experimental central bank digital currency. In June 2024, total transaction volume reached 7 trillion digital yuan ($986 billion) across 17 regions, spanning sectors such as education, healthcare, and tourism. This figure is nearly four times the 1.8 trillion yuan ($253 billion) recorded by the People’s Bank of China in June 2023.
- A new record high for CBDCs has been recorded, with 44 pilot projects underway, including a digital euro. European countries, both within the eurozone and outside, are increasingly testing CBDCs in bulk, both domestically and across borders.
Top 10 Countries in the World Trading Crypto
In 2025, as the crypto industry continues to grow, several countries have emerged as global leaders in fostering supportive cryptocurrency environments.
These countries offer regulatory clarity, tax incentives, and supportive infrastructure, making them attractive hubs for blockchain companies and investors.
These are the top 10 countries that deal with crypto and are considered major supporters of it in 2025, according to many websites and platforms, including CoinMarketCap, Nomad Capitalist, and CoinCap:
1. Switzerland
Switzerland, specifically the city of Zug, known as the Crypto Valley, is a global leader in blockchain innovation.
The country boasts a clear and transparent regulatory framework for crypto, and the Swiss Financial Market Supervisory Authority provides detailed guidelines for initial coin offerings and digital asset companies.
In addition, Switzerland adopts flexible and favorable tax policies that encourage crypto investors, strengthening its position as a leading destination for global blockchain projects.
2. Singapore
Singapore is known for its progressive and supportive stance towards cryptocurrencies. The Monetary Authority of Singapore (MAS) regulates digital assets under the Payment Services Act, providing a clear and secure regulatory environment for businesses and investors alike.
Academic institutions play a pivotal role in promoting this sector, with prestigious universities such as the National University of Singapore (NUS) and Singapore Management University offering specialized educational programs in blockchain technology.
Major events, such as Blockchain Week, also contribute to raising awareness and enhancing knowledge in this field.
An attractive tax policy, including a low capital gains tax on crypto transactions, is one of the factors that make Singapore an ideal environment for blockchain startups.
3. Hong Kong
Hong Kong has embraced the crypto sector by developing clear and supportive regulatory frameworks for exchanges and digital asset companies.
The Securities and Futures Commission oversees the sector by issuing detailed guidelines for virtual asset trading platforms.
In addition, the Anti-Money Laundering and Counter-Terrorism Financing Act enhances regulatory transparency, sets compliance requirements for virtual asset service providers, and protects investors.
We also see Hong Kong’s efforts to explore asset tokenization technologies, while government funds support innovation and entrepreneurship in the digital space.
Hong Kong’s advanced financial infrastructure, coupled with easy access to global markets, reinforces its position as an ideal destination for crypto projects.
4. UAE
The UAE, and Dubai in particular, has become a global hub for crypto. Dubai has established the Virtual Assets Regulatory Authority, which has established a clear and comprehensive regulatory framework for digital assets trading.
The country has established free zones that support the crypto industry, most notably the Dubai Multi Commodities Centre, which is considered one of the most prominent environments stimulating the growth of blockchain and crypto companies.
5. Canada
Canada is among the first countries to adopt clear regulations for crypto, with the Canadian Securities Commission issuing comprehensive guidelines to regulate the sector.
The country boasts an advanced blockchain ecosystem and is among the first to allow the launch of Bitcoin exchange-traded funds (ETFs), enhancing the legitimacy of investing in digital assets.
Major banks such as Scotiabank also provide dedicated services to crypto companies, reflecting the traditional financial system’s support for this sector.
Canada also boasts favorable tax policies, particularly for investors with long-term strategies, making it an attractive environment for the growth and development of the crypto market.
6. USA
Despite the regulatory challenges facing the crypto sector in the United States, it remains one of the world’s leading players in this field.
The country is home to a large number of blockchain startups, as well as major trading platforms and institutional investors.
Regulatory bodies such as the SEC oversee the regulation of this sector, while states such as Wyoming and Texas have adopted supportive legislation that fosters an environment for innovation and crypto.
Additionally, major financial institutions and fintech companies like Fidelity and PayPal have begun integrating crypto services into their offerings, expanding the scope of use.
With significant venture capital and strong financial institutions, the United States is a fertile environment for the development and expansion of the digital asset industry.
7. Cayman Islands
The Cayman Islands is a prominent global financial center with an advanced legal framework that supports crypto companies.
The islands’ Virtual Assets (Service Providers) Act provides clear licensing rules and strict guidelines, creating a highly transparent and reliable business environment.
It features no direct taxes on crypto transactions, making it a destination for investors and businesses.
The advanced banking infrastructure, along with advances in information and communications technology, also supports the operations of digital asset service providers.
Thanks to these tax and regulatory advantages, the Cayman Islands has become a preferred choice for many global crypto companies and hedge funds.
8. Australia
Australia has established a comprehensive legal framework to regulate the crypto market, overseen by the Australian Securities and Investments Commission, which ensures compliance and provides a safe environment for digital assets.
The Australian government is very open to cooperation with blockchain companies, seeking to strike a balance between oversight and development. It provides a regulatory environment that encourages innovation in this sector.
The country also adopts progressive tax policies that take into account the nature of digital transactions, providing significant incentives for traders and long-term investors.
9. Portugal
Portugal is one of the most crypto-friendly European countries, thanks to its tax-free status on assets held for more than a year and its open regulatory environment with no mandatory licenses.
Its local banks are increasingly open to dealing with crypto companies, and Lisbon is emerging as a major hub for digital innovation, supported by national plans for digital transformation and blockchain integration.
10. Malta
Malta, often referred to as the Blockchain Island, is a pioneer in crypto adoption thanks to its clear and supportive regulatory framework.
The government provides a transparent and innovative environment for Web 3 companies. Malta also does not impose capital gains tax on long-term gains, encouraging investment retention.
Banks in Malta offer crypto services, and the country hosts major companies like Binance and OKEx, strengthening its position as a major destination for crypto.
Crypto in the Middle East
Middle Eastern countries’ policies toward crypto vary, ranging from full permission and support, and the issuance of regulations regulating their use, as in the UAE and Bahrain, to countries that completely ban these currencies, like Algeria, Egypt, and Jordan.
Here’s a brief look at the reality of crypto in some prominent Middle Eastern countries:
1) The UAE
The UAE, particularly Dubai, is among the most advanced countries in the Middle East in regulating crypto.
Dubai established the Virtual Assets Regulatory Authority, which has established a clear and comprehensive regulatory framework for digital asset trading.
These policies have attracted major companies like Binance, making Dubai a prominent center for cryptocurrencies.
2) Bahrain
Bahrain is considered a pioneer in regulating crypto in the region. The Central Bank of Bahrain has issued regulatory guidelines that allow the operation of crypto exchanges and the provision of crypto asset services.
These policies have attracted global companies such as Binance, which has obtained a license to operate in Bahrain.
3) Saudi Arabia
Saudi Arabia is adopting a cautious approach to cryptocurrencies. However, the regulatory framework for crypto in Saudi Arabia is constantly evolving.
The Saudi Arabian Monetary Authority (SAMA) has taken steps to regulate and supervise the crypto market to ensure financial stability and protect consumers.
4) Egypt
Cryptocurrencies, including Bitcoin, are illegal under Egyptian law, and the Central Bank and Banking Law explicitly prohibit the issuance, trading, or promotion of crypto without prior approval from the Central Bank of Egypt.
The law sets out strict penalties, including fines and imprisonment, for those who engage in unauthorized activities related to crypto.
5) Morocco
Although Morocco has banned crypto since 2017, the Central Bank of Morocco announced in November 2024 that it was preparing a draft law to regulate digital assets.
This signals a gradual shift toward regulating its use, with a focus on promoting financial inclusion. Morocco is also exploring the issuance of a central bank digital currency.
6) Algeria
Algeria completely prohibits the use of crypto, including the purchase, sale, or possession of these currencies, according to the 2018 Finance Law.
This law reflects the Algerian authorities’ concerns about the potential negative impact of these currencies on the local economy and financial security.
7) Jordan
The Central Bank of Jordan has banned the use of cryptocurrencies like Bitcoin since 2014.
However, there is growing interest in blockchain technology and its applications in areas such as government services and finance.
Cryptocurrencies are still in their infancy
The crypto ecosystem thrives on constant innovation, which has expanded its use beyond digital payments.
Smart contracts, pioneered by Ethereum, transformed blockchain networks into programmable platforms, enabling automated and secure execution of agreements without intermediaries.
This has led to the emergence of decentralized finance (DeFi), a thriving sector that offers services like lending, borrowing, and collection without the need for traditional banks.
DeFi protocols have attracted billions of dollars in investment, highlighting the market’s potential to revolutionize traditional finance.
In conclusion, with the rapid development of crypto and blockchain technology, the world appears to be on the cusp of a true financial revolution.
These technologies are not just alternatives to traditional payments, but also constitute a new infrastructure for more transparent, inclusive, and efficient financial systems.
While still in its early stages, there are strong indications of the tremendous potential this technology holds.
With continued innovation and expansion, crypto are likely to play a pivotal role in shaping the future of the global economy, revolutionizing the concept of value and financial exchange.
