Why Are Crypto Companies Going to Abu Dhabi?

For cryptocurrency startups seeking the stamp of legitimacy that comes with regulation, the capital of the United Arab Emirates (UAE) has become a draw.

Being on the borders of a desert, where temperatures easily surpass 40 degrees Celsius (104 degrees Fahrenheit) in the summer, life in Abu Dhabi is a struggle. With little natural drinking water, the city has to desalinate seawater just to provide enough drinking water for its 1.5 million inhabitants.

The modern skyscrapers and the lush public gardens are part of a different reality: Abu Dhabi presents itself as an oasis. As the UAE continues to diversify from oil, the city’s wealthy rulers want to entice new businesses, including those in the cryptocurrency industry.

Several industry members told CoinDesk that Abu Dhabi – specifically the Abu Dhabi Global Market (ADGM), the city’s international financial center – has become an attractive jurisdiction for crypto companies large and small since it introduced digital asset…