UAE Crypto Sector To See Increase In Mergers And Acquisitions As Well As Strategic Partnerships, Experts State

Industry players in the UAE are also anticipated to launch global and regional expansion drives, leveraging their regulatory approvals in Dubai and Abu Dhabi amidst the Gulf country’s regulatory leadership and virtual assets ecosystems fast gaining global command.

The UAE’s comprehensive regulatory framework for the crypto sector is also touted to emerge as a blueprint for global policy convergence for the industry, sector experts said.

“Virtual Assets Regulatory Authority (VARA) acknowledges that any rapidly evolving industry will naturally experience cycles of market consolidation and strategic realignment,” Paul Boots, Head of Sector Development at Dubai VARA, told Arabian Business.

“We anticipate that as the ecosystem matures, we will see mergers and acquisitions and strategic partnerships,” he said.

Boots said the regulator also expects to see leading market players, Virtual Asset Service Providers (VASPs), potentially passporting their regulatory status – where firms look to leverage their VARA licences to expand regionally and globally.

Leading industry players also seconded the market consolidation drive anticipated by the Dubai sector regulator.

“Yes, we anticipate a wave of consolidation in the next couple of years,” Dr. Han Lin, founder and CEO of Gate Group, a leading global sectoral player with major operations in the UAE, told Arabian Business.

He said the consolidation move is expected, as many licensed VASPs may find sustainability difficult without scale or strategic differentiation.

Binance spokesperson Bana Khalaf Samantha Fuller said as the industry continues to expand, it’s natural to see increased activity – whether through partnerships, strategic moves, or market evolution.

“Growth often brings consolidation and acquisitions as businesses adapt and scale, and the UAE’s position as a leader in this space makes it a focal point for such developments,” Samantha Fuller told Arabian Business.

CoinMENA Founder and CEO Talal Tabbaa, while emphasising that market consolidation is inevitable, pointed out that the world’s largest-ever crypto acquisition target was a VARA-regulated entity – Deribit by Coinbase.

“So, this is no longer a theory, it is a reality,” Tabbaa told Arabian Business.

UAE leads crypto regulation

Despite the surge in the number of licensed crypto market entities in the UAE – VARA Dubai has recently disclosed that it has licensed 30 VASPs, while ADGM also have a handful of licensed VASPs. Sector regulators and industry players said the growing number of licensed entities in the UAE reflects the country’s leadership in crypto regulation, and not overcrowding.

Boots said the UAE’s virtual assets ecosystem has grown from strength to strength, with over 30 entities now licensed under VARA in Dubai alone.

“This volume is not incidental – it reflects both the deliberate, phased implementation of our regulatory framework, and the growing confidence of global players in Dubai as a future-ready jurisdiction for virtual asset innovation,” he said.

Boots also said Dubai’s position as a global business and financial hub means that market saturation is not necessarily a constraint, but rather a reflection of healthy competition and increasing demand.

“Each licensed entity has undergone rigorous review, with the licensing process intentionally calibrated to attract high-quality participants who bring differentiated value propositions to the market – be it in technology, liquidity, compliance, or service delivery,” he said.

Lin said Dubai and Abu Dhabi have both adopted clear, comprehensive frameworks that attract global players seeking regulatory certainty.

“We see the high number of licensed VASPs as a signal of the UAE’s success in building a progressive and clear regulatory framework, not overcrowding,” he said.

Samantha Fuller said the influx of exchanges and crypto service providers being granted VASP licences is fostering a competitive yet orderly environment that is being built through regulatory clarity and clear frameworks.

“The UAE has shown exceptional leadership in the realm of virtual asset regulation, and we are committed to actively collaborating with regulators and policymakers in the MENA region to build the crypto ecosystem further by prioritising innovation, user protection, and market security,” he said.

Samantha Fuller said VASP licenses also ensure that exchanges like Binance can offer regulated and transparent services that users can trust.

“This not only protects users but also fosters a healthy crypto ecosystem,” he said.

UAE tops global crypto race

Tabbaa said the super growth of VARA is proof that there was a real global need for a top-class virtual asset regulator.

“Dubai is a pioneer in many areas, and now that includes crypto regulations,” he said.

He also said the impressive growth of the sector in the UAE is not by chance, it is the result of a vision that is properly executed.

As for challenges due to the surge in licensed market entities, Tabbaa said: “It is up to the businesses to figure out how to navigate them by managing the bull and bear markets of crypto.”

Comparing the progress made by the UAE with the global pickup in regulations and licenses, Tabbaa said they have seen regions make moves before, like Singapore, Hong Kong and Switzerland.

“But in 2025, I would say the UAE, Bahrain and the USA are the [most] leaders.”

Lin, however, said while competition is increasing, it’s important to recognise that licensing alone is no longer a differentiator.

“The bar has been raised. Success will depend on platforms’ ability to deliver long-term compliance, deep user trust, and sustained innovation,” he said, adding that the Group sees this as an opportunity.