Adoption of crypto in UAE continues to quicken

Speed and transactional efficiency are driving the fast adoption of cryptocurrencies in the UAE and wider Middle East region, according to new research.

And many people in the Middle East are opting for digital currencies because of the privacy it affords while making transactions, reflecting the region’s preference for financial security and discretion, according to a global study by Bitget Wallet, an arm of leading crypto exchange Bitget.

A sizeable number of cryptocurrency users in the region, however, are concerned about security risks amidst the surge in phishing scams, exchange breaches and Ponzi schemes, making security a top priority

“Whether for personal savings, business dealings or investment purposes, [Middle Eastern users] are increasingly preferring crypto as it offers a way to transact without excessive scrutiny or third-party oversight,” the study said.

“This also aligns with the growing demand for decentralized financial solutions in the region that put users in control of their wealth,” it said.

Bitget Wallet, however, said while crypto presents exciting financial opportunities, strengthening security education and implementing more user-friendly protections will be key to boosting confidence in crypto payments. Many new users remain vulnerable to cyber threats, it said.

High transaction fees are another barrier for wide-spread use of crypto transactions in the Middle East, as unpredictable costs reduce its appeal for users relying on crypto for remittances, business transactions, or daily payments, the study said.

“Many individuals and businesses face barriers in transferring funds across borders due to banking regulations or limited access to international financial networks.

“Crypto eliminates these restrictions, allowing users to send and receive money effortlessly, regardless of location. This has made digital assets particularly attractive for expanding business opportunities and enabling financial inclusion,” Bitget Wallet said.

It, however, pointed out that clearer regulations and enhanced legal protections will be essential for building trust, ensuring that crypto can evolve into a more secure and widely accepted financial tool in the region.

The global study of crypto users across regions also revealed that privacy concerns drive adoption in the Middle East (38%) and Western Europe (35%).

The study, however, said across regions, limited merchant acceptance – estimated at 31% – continues to be a major barrier, preventing crypto from being a widely used everyday payment method.

Lack of legal protection is another major obstacle for wider crypto adoption, with as much as 30% of Middle Eastern users highlighting it as a key concern.

“Unlike traditional finance, crypto transactions often lack consumer safeguards, leaving users exposed to fraud, disputes or lost funds with no recourse,” Bitget Wallet said.

The study also revealed that some regions see crypto as an alternative financial system rather than just a payment method.

Generational differences in crypto usage revealed that Gen X (49%) prioritises speed, while Millennials (42%) and Gen Z (39%) favour borderless transactions.

The study also showed that security concerns are highest among Gen X (42%), while Gen Z (36%) is more sensitive to transaction fees.

While younger users are more willing to integrate crypto into their daily financial activities, usability challenges and a lack of financial infrastructure remain key hurdles for broader adoption, Bitget Wallet said. “Across generations, the top reasons for using crypto payments remain consistent, but key differences emerge in priorities,” it said.

The study said privacy and cost savings resonate across all age groups, with 37-40% citing privacy as a major factor and 37% appreciating lower transaction fees.

While all generations recognize the convenience of spending crypto without converting to fiat, Gen X and Millennials (39%) lead in this preference.

“These insights suggest that while Gen Z is more experimental, Millennials and Gen X see crypto as both a practical tool and a financial alternative, with speed, accessibility, and privacy driving adoption,” Bitget Wallet said.

Gen Z is also slightly more inclined toward crypto’s ability to bypass traditional financial systems, it said.

The study is expected to enable industry stakeholders to anticipate trends, refine user experiences, and develop solutions that enhance trust, usability, and global acceptance of crypto as a viable payment method.