Dubai isn't a city lacking in ambition. One of the seven emirates that comprise the United Arab Emirates (UAE), Dubai has been instrumental in the hyper-growth experienced by the UAE since its formation in 1971. Many would agree then that Dubai's high enthusiasm for crypto and Web3 technologies was inevitable.
The Dubai Future Foundation established a Global Blockchain Council in 2016 to explore opportunities for blockchain applications across the city. Meanwhile, the Dubai AI Campus, established in 2024 and located at the Dubai International Financial Centre (DIFC), provides a collaborative arena for advancing artificial intelligence and Web3 technologies. This high ambition is part of the reason why OKX pursued and was granted our licence to provide crypto services in the emirate during July 2024.
And what of crypto trading? It's both legal and regulated in Dubai, with numerous local and international exchanges having a presence there, including OKX. What's more, Dubai makes a significant contribution to the UAE's status as a crypto hub. According to the Chainalysis 2023 Geography of Cryptocurrency Report, alongside its prevalence of centralized exchanges, the UAE has the second highest share of crypto activity from DeFi protocols among all the MENA (Middle East and North Africa) states featured.
But what of the homegrown and Dubai-based crypto companies that are busy defining tomorrow's Web3 landscape? Who are the local entities taking major strides forward, and what tools and technologies are they behind? Read on as we explore five major crypto projects born out of Dubai.
Komainu
Komainu provides custody infrastructure for asset managers, family offices, private banks, and other entities. Its custody solutions are secure, segregated, verifiable on the blockchain, and custom-built to protect the digital assets of institutional clients. Komainu Connect is the company's collateral management service, built to reduce counterparty risk by allowing customers to store assets in a collateral wallet, rather than with a third-party. Meanwhile, Komainu also offers a custodial staking solution — also built for institutions — that provides access to blockchain rewards when clients contribute to the consensus mechanism of a Proof of Stake network.
Launched in 2018, Komainu is a joint venture between Japanese bank Nomura, crypto security leader Ledger, and digital asset investment manager CoinShares. Fully regulated by the Dubai Virtual Assets Regulatory Authority (VARA) and Jersey Financial Services Commission (JFSC), Komainu also has an MLR registration with the UK's Financial Conduct Authority (FCA) and OAM registration in Italy. Today, Komainu counts a healthy list of partners in its ecosystem, including OKX. We've adopted the company's Komainu Connect services, alongside institutional global credit network Hidden Road and other major industry players. As the institutional adoption of crypto continues to grow — with inflows reaching record levels in 2024 — the bespoke and regulated services offered by Komainu can provide a secure gateway to the crypto markets.
Quaranium
Quaranium is the world's first quantum-proof hybrid distributed ledger technology (DLT) platform. The Dubai-based company's pioneering technology was built to address the potential vulnerabilities of traditional cryptographic algorithms brought by quantum computing and its vast computing capabilities. There's now a pressing need to develop quantum-resistant algorithms capable of protecting classified information and other sensitive systems. Quaranium's technology works towards this end in the area of DLT.
Where many other DLT systems aim to retro-fit quantum-resistant protections into existing systems, Quaranium vows to build the necessary infrastructure from the ground up for more robust and long-term security. Quaranium's whitepaper spotlights the technology's revolutionary dual layer architecture that combines a Proof of Work (PoW) blockchain with a Proof of Respect BlockDAG (Directed Acyclic Graph) for higher throughput and a more democratic network environment. Meanwhile, Quaranium's BlockDAG is optimized for Internet of Things applications for ultra fast microtransactions, while also interacting with the underlying PoW blockchain for security.
DLT platforms are fundamental to accessing and trading crypto assets, and as their usage increases, challenges with scalability and security can be encountered. The arrival and continued development of quantum computing threaten to compound the scalability and security challenges seen today, which is why Quaranium's technology has attracted interest. It presents a new standard for DLT systems that helps to address scalability and security concerns while preserving decentralization through the novel Proof of Respect consensus.
Wizardia
Wizardia is a AAA-rated play-to-earn (P2E) roleplaying strategy game. Set in a fantasy world, Wizardia sees players take control of teams of wizards that are represented by non-fungible tokens (NFTs). Players fight against each other to earn valuable resources, and can upgrade their wizard NFTs' capabilities before selling, trading, or renting them out on the Wizardia Market.
The metaverse game includes a staking element, where players can earn passive rewards by completing actions within the game's Arena. Meanwhile, earlier investors in the game can gain up to 76% annual percentage yield from the Wizardia NFT staking rewards. The project includes the tradable WZRD token (not to be confused with the Bitcoin Wizards token), which has a market cap of around $308,000 at the time of writing.
The P2E model aims to change the economics of conventional gaming by presenting an alternative to the play-to-win and freemium models. With P2E, players can earn assets that have, in theory, real-world value, such as tokens and NFTs, simply through in-game achievements. The use of blockchain technology is meant to bring an all important element of transparency and security to the space, while also providing the necessary infrastructure for assets to be exchanged. As such, P2E gaming attempts to offer viable revenue streams for some players.
Zeebu
Zeebu has made Dubai its home as the company works to disrupt the telecom wholesale voice industry through decentralization and blockchain technology. Through the wholesale voice model, a telecommunications company sells voice communication services to other service providers at a discounted rate, allowing the latter to then pass these services on to customers and turn a profit. However, the sector does suffer from "inefficiencies, opaqueness, and trust issues" according to the project's white paper, which can lead to "higher costs, remittance delays, and revenue leakages."
Zeebu's platform aims to address these challenges head on by building a secure and trustless marketplace using blockchain technology. Here, buyers and sellers can trade voice traffic directly, with smart contracts and decentralized finance protocols allowing for fast and secure payments without requiring a third party. All transactions are meant to be recorded transparently, while auditable records help prevent fraud and disputes. The technology can not only help improve efficiency, but also open up opportunities for greater revenue among telecommunications players in a competitive space.
Zeebu's merging of the conventional telecommunications model with decentralization and tokenization provides a compelling use case for Web3 technologies and spotlights their potential to change what's possible in long-established industries.
Empeiria
Empeiria, launched in 2021, is aiming to build the highest value-to-cost end-to-end verifiable data infrastructure (EVDI) available today. Put simply, EVDI allows users to verify the accuracy and integrity of data at every stage of its lifecycle — from its origins to final use. This allows users to confirm the data's accuracy at any point and guarantee it remains unchanged. Through its EVDI, Empeiria aims to simplify the deployment of decentralized data ecosystems for AI-based organizations.
The technology employs decentralized identifiers, verifiable credentials, zero-knowledge proofs, and self-sovereign identity to help validate the quality and standardization of data. Organizations choose Empeiria's technology to improve the efficiency and transparency of their AI models while also benefiting from robust data security, regulatory compliance, and simplified deployment. Individuals, meanwhile, can own and control their data, and also capitalize on simpler digital interactions with the Empe Wallet.
Empeiria has stated its aim to help drive adoption of Web3 technology through its EVDI. With data being a fundamental ingredient in AI systems, and both AI and Web3 having a transformative impact on virtually every industry today, the company is well placed to capitalize on growing interest in optimized AI models.
The final word
As crypto assets and Web3 at large continue to emerge globally, Dubai has taken steps to be a prominent part of the story that's unfolding. Cryptocurrency revenues could reportedly increase at an annual growth rate of 7.89% between 2024 and 2028 in the UAE, and Dubai can make a contribution.
Such progress and the health of the wider crypto landscape relies in large part on the myriad companies diligently building new tools and redrawing the boundaries of what's possible with Web3 technologies. The above are just five examples among the many transformative projects present in Dubai today.
EDUCATIONAL DISCLAIMER
This content is for educational and informational purposes only and may reference products or services unavailable in your region. It is not intended to: (i) provide investment advice or recommendations; (ii) serve as an offer or solicitation to buy, sell, or hold virtual assets; or (iii) offer financial, accounting, legal, or tax advice.
Virtual assets, including stablecoins and NFTs, involve a high level of risk and significant volatility. You should carefully assess whether trading or holding virtual assets aligns with your financial situation and risk tolerance. Virtual assets are subject to extreme market fluctuations and may lose value, potentially resulting in the loss of your entire investment. They are not insured, lack legal protections, and are not covered by any financial safeguards. Avoid making investment decisions based solely on urgency. Consult with legal, tax, or investment professionals for advice tailored to your circumstances. OKX Middle East FinTech FZE is licensed by the Virtual Assets Regulatory Authority to provide Virtual Asset Exchange Services, Management and Investment Services, as well as Lending and Borrowing Services. OKX Middle East FinTech FZE operates under VASP Reference: VL/23/12/003. Please refer to the Terms of Service and Risk Disclosure for further details.
The information (including market data and statistical information, if any) provided in this content is for general educational purposes only. While reasonable care has been taken in preparing this information, OKX accepts no responsibility or liability for any errors, omissions, or inaccuracies contained herein. OKX Web3 Wallet and OKX NFT Marketplace are subject to separate terms of service, available at okx.com.
FAQs
Yes, it's legal to hold and trade cryptocurrencies and other digital assets in Dubai. The emirates' crypto industry is regulated to protect users, and various global exchanges have a presence in the city, including OKX.
Many would agree that the UAE is a crypto-friendly environment given the active involvement of regulators and the movement of multiple major institutional entities into the country. Meanwhile, the country's leadership has also adopted blockchain into government services in a show of support for wider Web3 technologies.
Advancements to the regulatory landscape for digital assets in Dubai suggest the industry at large could be growing in the emirate. Growth isn't always easy to define, but many would argue that the presence of major crypto projects, as outlined in the article above, points to a fertile environment for crypto's continued emergence in Dubai.
Choosing a crypto project to commit your funds, time, and other resources too depends largely on your own priorities and interests. As always, we recommend doing your own research to understand a project's roadmap, its related token, and the people behind it before getting involved. And, where your own funds are concerned, remember to never trade with more than you can afford to lose, as crypto carries inherent risks.
© 2024 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less of this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: “This article is © 2024 OKX and is used with permission.” Permitted excerpts must cite to the name of the article and include attribution, for example “Article Name, [author name if applicable], © 2024 OKX.” No derivative works or other uses of this article are permitted.
Information about: digital currency exchange services is prepared by OKX Australia Pty Ltd (ABN 22 636 269 040); derivatives and margin by OKX Australia Financial Pty Ltd (ABN 14 145 724 509, AFSL 379035) and is only intended for wholesale clients (within the meaning of the Corporations Act 2001 (Cth)); and other products and services by the relevant OKX entities which offer them (see Terms of Service). Information is general in nature and should not be taken as investment advice, personal recommendation or an offer of (or solicitation to) buy any crypto or related products. You should do your own research and obtain professional advice, including to ensure you understand the risks associated with these products, before you make a decision about them. Past performance is not indicative of future performance - never risk more than you are prepared to lose. Read our Terms of ServiceTerms of Serviceand Risk Disclosure Statement for more information.
