The UAE has implemented several measures in the past year to combat financial wrongdoing. Most recently, the UAE Central Bank announced guidance to combat money laundering for financial institutions in the Gulf state.
Many cryptocurrency exchanges have announced moves to Dubai and Abu Dhabi, in part attracted by the virtual asset regulations the UAE issued last year.
There is also a relatively high degree of cryptocurrency-related innovation taking place in the UAE. In October, the Dubai-based cryptocurrency platform BitOasis announced a crypto-backed payment card.
DeFi is a form of fintech whereby individuals can conduct financial transactions such as loans without intermediaries such as banks, relying on technology such as digital financial databases. DeFi uses blockchain technology like that of cryptocurrency.
DeFi could become a “bubble,” meaning it will crash after seeing a quick increase in value.