The UAE's cryptocurrency market grew 32% to AED 384.6 billion in the year to June 2026, putting the country on track to overtake Türkiye as the Middle East and North Africa's (Mena) largest crypto market, according to a new Chainalysis report.
The report covers the period from July 2025 to June 2026. It found that the UAE's crypto market now stands at around 73% of Türkiye's market size. If the current growth continues, the UAE could take the regional lead in the 2027 reporting period.
The findings also show a sharp difference between the UAE and other regional markets. Excluding the UAE, Mena's crypto economy declined 8.6% during the period. Across the entire region, crypto activity fell 1.4%, with the market reaching AED 1,626.9 billion, compared with AED 1,650 billion a year earlier.
The Chainalysis report found that institutional activity played a major role in the UAE's growing crypto market. Its services sector reached AED 375.4 billion, recording a 29% increase during the reporting period.
Inflows into centralised cryptocurrency exchanges increased 22% to AED 201.9 billion. Institutional platforms, including custodians and market-makers, recorded stronger growth of 75%, reaching AED 42.9 billion.
Decentralized finance exchanges also saw increased activity. Their inflows crossed AED 113.8 billion, marking a 31% rise from the previous year. Henri Arslanian, co-founder of Nine Blocks Capital Management, highlighted the UAE's growing importance in the global crypto industry.
“Outside of the US, Mena and in particular the UAE has become the main hub for crypto firms’ global operations,” he said in the Chainalysis report.
He also credited the country's licensing approach for making it easier for company executives to work with digital assets.
Globally, the 2026 bear market cut cryptocurrency market capitalization by half. However, on-chain economic activity saw a much smaller impact, according to Chainalysis. The report also highlighted regional disruptions linked to the Iran conflict, which began on February 28, 2026.
Separately, Binance is investigating a security breach with an estimated impact of AED 23.1 billion. Around AED 11 billion in affected assets has been frozen so far. Co-founder Yi He said the company would cover ‘all hacking losses’.
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