Crypto transaction activity across the Middle East and North Africa has expanded sharply in recent years, with annual on-chain volume rising from approximately $100 billion in 2022 to an estimated $350 billion during 2025–2026, according to a Bitcoin Policy Institute report published Sept. 4.
The institute attributed the growth to a combination of inflation, currency depreciation, government-backed technology initiatives and increasing institutional participation in digital assets. However, the $350 billion figure is an estimate covering the 2025–2026 period rather than a confirmed total for a single completed calendar year. The report also does not provide a single underlying dataset or detailed methodology explaining the calculation.
Turkey remains the region’s largest crypto market by transaction value, with annual activity approaching $200 billion, according to the report. Adoption has been supported by prolonged inflation and weakness in the Turkish lira, while stablecoins provide users with digital exposure to the U.S. dollar, although they also carry issuer, platform and regulatory risks.
The report identified different adoption patterns across the region. In countries affected by inflation, capital restrictions, sanctions or conflict, Bitcoin and dollar-backed stablecoins have been used for value preservation and transferring funds. Meanwhile, Gulf economies have attracted exchanges, institutional trading firms and tokenization platforms through regulated financial centers.
Transaction volume, however, should not be interpreted as a direct measure of investment gains, unique users or new capital entering the region. On-chain estimates can include transfers between wallets controlled by the same exchange and repeated movements of the same assets.
Egypt, Lebanon and Iran have also experienced demand for crypto under difficult economic conditions. The report said peer-to-peer Bitcoin trading in Egypt increased by more than 300% following successive devaluations of the Egyptian pound, although it did not identify the complete dataset or measurement period behind that estimate.
Geopolitical tensions have produced mixed effects on regional crypto markets. Following the escalation of the Israel-Iran confrontation in June 2025, the institute said the overall crypto market declined about 3.7%, while Bitcoin fell around 2.3% and Ether dropped 7.5%. Bitcoin’s market dominance later rose to 64.8% as some investors shifted away from smaller tokens.
Saudi Arabia and Qatar have also recorded significant growth in crypto activity. The institute cited Chainalysis data showing year-over-year increases of 154% for Saudi Arabia and 120% for Qatar. Those percentages, however, come from a Chainalysis regional study published in September 2024 and should not be treated as current 2026 growth rates.
The report linked Saudi Arabia’s expansion to growing interest in blockchain technology, financial technology, gaming and central bank digital currency research. The country has also explored blockchain and tokenization applications in areas including energy and real estate as part of its broader economic diversification strategy.
Qatar’s growth has coincided with the development of a digital asset framework through the Qatar Financial Centre, which established rules covering tokenized assets and related infrastructure. The framework does not amount to blanket legalization of all cryptocurrency activity in the country.
The UAE has emerged as another major regional market. The Bitcoin Policy Institute estimates that approximately $150 billion in crypto transactions were processed there during 2025. Its estimates suggest Bitcoin represented 38% of activity, Ether 22% and dollar-backed stablecoins 30%. These figures are estimates rather than official transaction statistics from a UAE regulator, and public blockchain data cannot always establish whether the parties behind transactions are actually located in the UAE.
The country has nevertheless developed several regulatory frameworks for digital assets. Dubai’s Virtual Assets Regulatory Authority oversees eligible virtual-asset activities outside the Dubai International Financial Centre, while Abu Dhabi Global Market operates its own financial-services framework. The Central Bank of the UAE regulates payment-token services.
Institutional activity has also expanded, with companies such as Flowdesk and Kraken pursuing regulated operations in Dubai. Stablecoin infrastructure is developing alongside these services, including regulated conversion mechanisms linking dirham-backed and dollar-backed digital currencies.
Bahrain has followed a separate regulatory approach. The Central Bank of Bahrain introduced its Stablecoin Issuance and Offering Module in July 2025, establishing requirements related to reserves, redemption, governance, disclosures and supervision for regulated stablecoin offerings conducted in or from the country.
Bahrain has also supported digital-asset infrastructure through regulated financial institutions, including initiatives involving crypto custody and stablecoin services.
Overall, the report suggests that crypto adoption across MENA is developing along two broad paths: demand for Bitcoin and stablecoins in economies facing monetary and geopolitical pressures, and institution-focused digital-asset development in wealthier Gulf markets.
The institute expects both trends to continue, although future growth will depend on regulatory developments, access to banking services, market conditions and whether current institutional blockchain and tokenization projects progress from pilot programs into broader commercial use.
