Crypto Growth Shifts to Licensed Rails as MENA Holds Flat at $443 Billion
The UAE's institutional inflows jumped 75 percent, Türkiye's licensing regime pushed users toward peer-to-peer rails, and regulators from Washington to Singapore set out the next round of rules — growth is continuing, but on permissioned ground.
- The Middle East and North Africa crypto economy was essentially flat at US$443.3 billion in the 2026 reporting period, a 1.4 percent decline, according to Chainalysis. Self-reported m:…5965
- The UAE's crypto economy grew 32 percent to US$104.8 billion in 2026, with institutional platform inflows up 75 percent to US$11.7 billion. Self-reported m:…5965
- Türkiye's crypto economy contracted modestly to US$144.5 billion as it enforced a licensing regime requiring crypto asset service providers to hold SPK licenses, while domestic peer-to-peer stablecoin volume grew fivefold to US$3.56 billion. Self-reported m:…5965
- Alpaca Clearing & Custody ME Ltd received in-principle approval from the Abu Dhabi Global Market's Financial Services Regulatory Authority, a step toward a regulated UAE presence offering brokerage and virtual asset custody — but the approval does not yet authorize regulated activities. Self-reported m:…4281
- TRM Labs' quarterly policy roundtable recorded that the US CLARITY Act failed to clear a cloture vote, the UK FCA opened its authorization gateway on September 30, 2026, and the EU's MiCA 2.0 consultation closed the same day, with a report due by June 30, 2027. Self-reported m:…1817
Flat overall, growing where licensed
The Middle East and North Africa crypto economy was essentially flat at US$443.3 billion in the 2026 reporting period, a 1.4 percent decline, according to Chainalysis. The flat headline hides a split: the UAE's crypto economy grew 32 percent to US$104.8 billion, with institutional platform inflows up 75 percent to US$11.7 billion, while Türkiye's market contracted modestly to US$144.5 billion and Israel's grew 0.7 percent to US$37.9 billion. m:…5965
Licensing is reshaping how users transact. Türkiye is enforcing a regime requiring all crypto asset service providers to hold licenses from the SPK, and domestic peer-to-peer stablecoin volume grew fivefold to US$3.56 billion in 2026, according to Chainalysis. Tokenized gold trading volume in Türkiye climbed to nearly US$1 billion in 2026, and stablecoins' share of Israeli service inflows rose to 57 percent — signs that users are reaching for familiar assets and dollar-linked instruments as geopolitical instability persists. m:…5965
Conflict left a measurable trace: Iranian bitcoin transactions fell by as much as 90 percent during the first week of the January 2026 internet blackout, according to Chainalysis. The episode underlines why regulators and firms alike are treating crypto infrastructure as critical infrastructure, not just a market. m:…5965
Abu Dhabi's newest applicant
Alpaca Clearing & Custody ME Ltd has received in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market, the company says, a key step toward establishing a regulated presence in the UAE. Alpaca Middle East plans to offer brokerage services and custody for virtual assets, and the company describes the UAE as an important hub connecting regional and global capital markets. m:…4281
The approval is preliminary in a way that matters: it does not authorize Alpaca Clearing & Custody ME Ltd to conduct regulated activities in or from the Abu Dhabi Global Market. The company already has a regulatory footprint across the US, UK, Europe, Japan, India and The Bahamas, and the Abu Dhabi step extends that map rather than completing it. m:…4281
The rulebook keeps moving
TRM Labs' quarterly policy roundtable, recapping the third quarter of 2026, shows regulators moving at different speeds. In the US, the CLARITY Act failed to clear a cloture vote, though the CFTC opened a 60-day comment period on retail crypto trading rules and the SEC announced a five-year innovation exemption for onchain trading of tokenized stocks, while the GENIUS Act is now law, according to TRM Labs. m:…1817
In Europe and the UK, the EU's MiCA 2.0 consultation closed on September 30, 2026, with the European Commission due to publish a report with proposals for new MiCA rules by June 30, 2027, and the UK Financial Conduct Authority opened its authorization gateway the same day, with approximately 281 crypto asset service providers holding authorization at the end of the MiCA grandfathering period. Singapore's Monetary Authority opened a stablecoin consultation on September 1, 2026 and published final AI risk management guidelines on October 7, 2026, while Australia's Digital Asset Framework Act takes effect April 9, 2027. m:…1817
TRM Labs also launched Ardence, an AI investigation platform integrating blockchain data with more than 60 partner datasets — a reminder that supervision is tooling up alongside the industry it oversees. For professionals, the through-line is clear: the growth is real, but it is increasingly happening where licenses, gateways and reporting already exist. m:…1817
What is still unresolved
- When Alpaca will receive full Financial Services Permission in the Abu Dhabi Global Market and the final scope of its approved virtual asset services.
- The long-term impact of Türkiye's licensing regime on retail participation.
- Final details of the UK regulatory perimeter, pending until early 2027.
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