According to the recent Kucoin Survey report The Cryptoverse,Understanding Crypto Users in the UAE, which revealed insights into the UAE’s role as a crypto hub, it was found that 48 percent of UAE crypto users are concerned about lack of trust in crypto exchanges, with 63 percent of them prioritizing security.

In addition, only 72 percent preferred Bitcoin as a crypto investment, followed by Ethereum at 52 percent, and stablecoins at 42 percent.

32% of respondents cite a lack of crypto education and awareness as the region’s top challenge.

In terms of crypto investment, 13 percent of those surveyed had invested more than $10,000 , while 26 percent invested between $1,000 $0,000 while 51 percent invested below $1000.

A significant portion of respondents (35%) are drawn to crypto as a means to diversify investment portfolios, and 11% are primarily motivated by the desire to hedge against inflation. This signifies an awareness among UAE investors of the importance of crypto in risk management and growing wealth, which is a critical in a global financial environment where fiat currencies are often affected by inflationary pressures.

29% of the respondents find crypto to be a convenient way to hold their assets, especially when compared to traditional banks, as crypto is being recognized with many more uses beyond mere financial investment. 22% engage in crypto for daily payments and transactions, 12% for cross-border remittances, and 9% for buying NFTs and other digital assets. This underscored the practicality and efficiency that crypto offer as an alternative to traditional financial services.

As per Kucoin, the survey showcases a strong appetite among UAE crypto users for real-world applications beyond investment, with 40% expressing a preference for crypto in cross-border remittances and daily transactions, signifying crypto’s potential to revolutionize financial interactions in the region.

The report highlights user perceptions regarding the UAE’s advantages for crypto industry development, with 53% citing access to funding as the top advantage, closely followed by a robust financial infrastructure and global network, positioning the UAE as an attractive destination for crypto entrepreneurs and businesses seeking growth.

In addition the findings reveal that 62% of UAE crypto users are eager for the integration of AI and blockchain technologies, showcasing the UAE’s forward-looking approach to crypto innovation.

The 17th edition of the report series, offers essential insights into the UAE crypto market. This comprehensive report is based on feedback from crypto investors in the UAE, highlighting their pressing need for trust, security, crypto education, and their profound interest in crypto innovation. Moreover, the survey reaffirms the UAE’s growing recognition as a cryptocurrency hub.

Alicia Kao, Managing Director of KuCoin, highlighted the significance of the report, stating, “Our survey has unveiled the pressing needs and aspirations of the UAE’s crypto community. Trust, security, and education are at the core of their concerns. This report not only illuminates their preferences but also solidifies the UAE’s position as a leader in the crypto revolution, with a dominant 72% preference for Bitcoin and a strong appetite for blockchain and AI integration. The UAE’s advantages, including access to funding, a robust financial infrastructure, and a global network, set the stage for the country’s crypto industry to flourish.”