Cryptocurrency
Key regulatory measures to reduce cryptocurrency risks should come from developed countries

Between September 2019 and June 2021, the crypto ecosystem expanded by 2,300%, especially in developing countries, the United Nations reported in a paper titled “Not All That Glitters Gold.” According to some estimates of digital currency ownership, 15 of the top 20 economies in the field in 2021 were emerging and developing countries.
Using cryptocurrencies has become attractive regarding the price and speed of sending a transfer. Cryptocurrencies are mostly owned by middle-income people in developing countries. In countries facing currency depreciation and rising inflation, cryptocurrencies were perceived to protect household savings.
Regardless of the reasons for using cryptocurrencies, exchanges play a crucial role in enabling their wider use. There are now more than 450 crypto-exchanges, which reached a joint peak daily trading volume of $500 billion in May 2021.
Risks. The UN cautions that using cryptocurrencies could lead to risks of financial instability. If prices fall, monetary authorities may need to intervene to restore financial stability. It is important to note that in developing countries.
Crypto use also undermines the effectiveness of capital controls, a critical tool in developing countries that can help contain the build-up of macroeconomic and financial vulnerabilities, as well as expand policy space.
Finally, if left unchecked, cryptocurrencies could become a widespread means of payment and even informally replace national currencies (a process called cryptocization), which could threaten countries’ monetary sovereignty.
Regulation. All of these risks have forced politicians around the world to start regulating. The proliferation of cryptocurrency has served as a wake-up call for central banks, some of which have begun to discuss creating public alternatives to private digital currencies. Developing countries have also begun to take steps to regulate.
As of November 2021, 41 countries, up from 15 in 2018, had banned banks and other financial institutions from conducting cryptocurrency transactions or prohibited exchanges from offering services to individuals and businesses. Nine developing countries, namely Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia, have completely banned cryptocurrencies. Some other countries have imposed income taxes on capital gains derived from trading. Finally, crypto exchanges are subject to national anti-money laundering and terrorist financing laws in jurisdictions such as Australia, the Bahamas, Greece, Romania, the Philippines and Uzbekistan.
Despite the recent regulatory response, cryptocurrencies remain in a legal gray area in most developing countries. The ecosystem is global in nature, and many of its components are outside the jurisdiction of states, making regulation of cryptocurrencies a challenge. Accordingly, the main regulatory measures to mitigate the global risks associated with cryptocurrencies should come from developed countries, where most of these providers are headquartered.
Developing countries may have less room to maneuver, but regulation is possible. The UN has highlighted measures that could curb the further spread of risks:
- Require mandatory registration of crypto exchanges and digital wallets and make using cryptocurrencies less attractive;
- Prohibit regulated financial institutions from holding stablecoins and cryptocurrencies or offering related products to customers;
- Regulate decentralized finance;
- Restrict or prohibit advertising of exchanges and digital wallets in public places and on social media;
- Create a public payment system, such as a central bank digital currency.
There is no universal policy response to the growing use of cryptocurrencies in developing countries, the UN summarized. Countries need to adapt to recommended policies, considering the specifics of their national financial systems, regulatory infrastructure and enforcement capacity. Also, regarding financial regulation, policymakers should consider that the crypto ecosystem is constantly evolving.
Cryptocurrency
Crypto Analyst Says Altcoins May Take 2 Months to Recover, Here’s Why

With the current state of the market, after one of the largest liquidations in the history of the crypto industry, an analyst is insisting that altcoins could take two months to recover from the gains they have shed over the last couple of days.
According to a tweet by crypto and stock market analyst Matthew Hyland, it is unlikely that altcoins will see a straight recovery within the next few days. Judging by past data, the cryptocurrencies could even take more than two months to find their way back up.
Altcoins Need 2 Months to Recover
Following bitcoin’s (BTC) $10,000 price slump over the weekend and into Monday, the altcoin market bled out, with many registering massive double-digit declines within hours. This market wipeout was triggered by United States President Donald Trump imposing tariffs on Canada, Mexico, and China.
The trade tariffs announcement led to one of the largest dumps in crypto history, with over 700,000 traders liquidating for more than $2.3 billion and the crypto market cap plummeting by at least 12% within a day.
Although the broader crypto market has shown signs of recovery within the last 24 hours, especially with President Trump temporarily pausing the tariffs against Canada and Mexico, most cryptocurrencies are still far from their pre-weekend levels.
Hyland stated that it is likely that the low is in for this cycle. He cited a similar liquidation event seen in 2020 during the COVID-19 crash, explaining that altcoins took more than two months to recover from the decline they saw at the time fully.
No High Expectations
Furthermore, the analyst highlighted more recent market liquidations witnessed during the TerraLuna dump in mid-2022 and in the aftermath of the bankrupt crypto exchange FTX implosion in late 2022. He asserted that recovery from previous experiences all took months.
Hyland urged crypto traders to keep their expectations “tempered” because they will not see the price highs recorded by most altcoins in December 2024 for at least two months. Bearing in mind that the crypto market is unpredictable and “can do anything,” Hyland still insisted that traders should expect the recovery to take time.
“I will gladly be wrong, but assuming there will be a straight recovery within days is just not likely and will probably make you uneasy if it doesn’t happen. Even a V shape like 2020 took weeks with many dips on the way back up,” the analyst stated.
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Cryptocurrency
Arthur Hayes Slams US Bitcoin Reserve Plans and Crypto Regulation Efforts

BitMEX co-founder Arthur Hayes has dismissed the idea of a U.S. Bitcoin reserve, calling it a politically driven and impractical concept.
In his February 5 essay called “The Genie,” Hayes argued that government stockpiling of the cryptocurrency would serve political interests rather than financial stability.
Bitcoin Reserve Would Be a Political Tool
“What can be bought can be sold,” he wrote, warning that politicians acquire assets for short-term gains. While some see Bitcoin as the “hardest” form of money, he pointed out that the U.S. government has no fundamental economic use for it. Instead, he suggested that political leaders would exploit its price fluctuations to serve their agendas rather than embrace its ideological underpinnings.
Hayes criticized Senator Cynthia Lummis’s proposal for a Bitcoin Strategic Reserve (BSR), arguing that if President Trump were to authorize the purchase of one million BTC, prices would rise temporarily but stall once buying stopped.
He also predicted that if the head of state failed to address major voter concerns like inflation, foreign conflicts, and corruption, Democrats could regain power in 2026. If they did, they would likely view the Bitcoin reserve as a convenient source of funds and sell it off to finance new policies. According to him, this would create uncertainty about the future of the government-held BTC, undermining confidence in the market.
The former exchange executive also questioned whether the administration would engage with Bitcoin beyond holding it as a passive asset. “Would they run nodes? Sponsor developers? Or just treat it like a trophy?” he asked.
Hayes further accused Trump’s team of using Bitcoin’s volatility to secure political gains, suggesting the reserve could become a tool for campaign fundraising.
Discussions about a federal Bitcoin reserve gained momentum after the President announced a sovereign wealth fund, with Lummis hinting that it could be used to buy Bitcoin. Prediction market platform Polymarket currently places the odds of a U.S. Bitcoin stockpile before the end of 2025 at 46%.
Regulatory Complexity
Hayes also spoke on crypto regulation, condemning what he called the “Frankenstein crypto bill.” He argued that any new framework would likely be excessively complex and prescriptive, favoring only the largest players in the industry who could afford the high costs of compliance.
He explained that investors with large stakes in centralized financial firms are the most likely to push for regulation, as they have the influence to shape policy in their favor. In contrast, developers in decentralized finance lack the resources to lobby for their interests.
The crypto investor warned that regulatory compliance would be affordable only to firms with deep pockets like Coinbase and BlackRock, reinforcing monopolies rather than creating competition. He also cautioned entrepreneurs against relocating to the U.S. for regulatory clarity, arguing that systemic corporate interests would stifle innovation and block smaller players from succeeding.
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Cryptocurrency
Dubai to Host Second Edition of Middle East Blockchain Awards as MENA Drives Global Crypto Growth

[PRESS RELEASE – Dubai, United Arab Emirates, February 6th, 2025]
The Middle East Blockchain Awards (MEBA) returns for its second year after the success of its inaugural edition, with Dubai selected as the host city. The ceremony will take place at the iconic Jumeirah Burj Al Arab on April 29, coinciding with the TOKEN2049 conference. The event will unite industry leaders, innovators, and visionaries to celebrate achievements in blockchain and cryptocurrency.
MEBA 2025 arrives at a pivotal moment amid the rapid acceleration of blockchain adoption across the MENA region. Recent data from Chainalysis positioned the region as the seventh-largest cryptocurrency market in the world. Between July 2023 and June 2024, MENA received an estimated on-chain value of $338.7 billion—accounting for 7.5% of the global transaction volume.
Notably, the UAE has emerged as a global leader in digital asset adoption. According to Henley & Partners’ latest report, the UAE ranks third worldwide in digital currency usage. Chainalysis data also revealed that the UAE received approximately $34billion in cryptocurrencies between June 2023 and July 2024, experiencing a robust 42% year-on-year growth. This is driven by the country’s progressive approach to blockchain technology, with cities like Dubai establishing themselves as key innovation hubs.
Max Palethorpe, Founder and CEO of Hoko Group, the official organizers of MEBA, commented: “The Middle East Blockchain Awards provides a unique platform to recognize the incredible achievements that are driving the next wave of innovation in blockchain and digital transformation. With the UAE leading the charge in the Web 3.0 revolution, it’s inspiring to see industry leaders coming together to shape the future of this dynamic industry. This year’s event promises to be a true celebration of the pioneers who are pushing boundaries and setting new standards.”
Returning as a judge for the second consecutive year, Dr. Marwan Al Zarouni, CEO, AI for Dubai Department of Economy and Tourism and CEO of Dubai Blockchain Centre (DBCC) added: “I am thrilled to be part of the judging panel once again and witness the rapid evolution of blockchain technologies in the MENA region. With the UAE at the forefront of this transformation, the government’s forward-thinking approach, combined with the region’s dynamic innovation ecosystem, is accelerating the adoption of Web 3.0 technologies. The Middle East Blockchain Awards captures this momentum and further cements the UAE’s position as a global hub for blockchain excellence.”
Other judges of the Middle East Blockchain Awards this year include:
● Jumana Al Darwish, Award Winning Social Entrepreneur and Founder of Happy Box
● Scott Melker, Host, The Wolf of All Streets Podcast, and Crypto TownHall
● Mario Nawfal, Host of Largest Show on X and Founder of International Blockchain Consulting Group
● Saqr Ereiqat, Secretary General of Dubai Digital Assets Association and Co-Founder of Crypto Oasis
● Jorge Sebastiao, Co-Founder Global Blockchain Organization and Co-Founder EcoX
● Matthies Mende, Founder and CEO of Bonuz and Co-Founder of Dubai Blockchain Center
MEBA aims to foster innovation, recognize excellence, and set new standards for blockchain and Web 3.0 projects across the region. In its inaugural edition in 2022, MEBA partnered with Abu Dhabi Global Market’s flagship platform, Abu Dhabi Finance Week, and the Middle East, Africa, and Asia Crypto and Blockchain Association (MEAACBA).
Submissions are now open at www.mebawards.io, where participants can find additional details about the categories and the nomination process.
About Hoko Abu Dhabi
Hoko Agency is a diversified and innovative company that owns and operates a diverse portfolio of businesses within the sectors of Finance, Blockchain, Entertainment, Sport and F&B. Hoko strives to be the best-in-class in each of their service lines; offering quality products, world class service and fitting solutions that go beyond the industry’s expectations.
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