Missile Strikes Test Dubai’s Crypto Hub

Missiles and drones flew near Dubai in late February after U.S. and Israeli strikes on Iran, disrupting airspace and prompting some executives in the emirate’s crypto sector to seek immediate departures. Organizers postponed TOKEN2049 within days of the strikes.

Private aviation executive Jonny Dodge, whose firm YourSky flies many of Dubai’s crypto executives, recalled that his phone ‘lit up nonstop’ as clients arranged charters to the Maldives, Sri Lanka and Europe. Several expatriates paid tens of thousands of dollars for last‑minute flights, according to aviation and industry contacts.

Blockchain analytics firm Chainalysis reported the UAE received more than $56 billion in on‑chain crypto value during its 2024–2025 reporting window, a 33% increase from the prior year. Chainalysis data showed small retail merchant transactions rose 88%, large retail transactions increased 84% and professional transactions climbed 80%. Jordan Wain, a Chainalysis global policy adviser, noted that use is shifting from trading to everyday spending.

Lawyers and company executives described a move to multi‑base operations rather than a full departure from Dubai. Firms are retaining licences, employees and legal entities in the emirate while splitting personnel and time across hubs such as Hong Kong and Singapore. Dubai’s Virtual Assets Regulatory Authority has issued 71 licences for virtual‑asset firms, and across the UAE’s five financial regulators there are 167 active virtual‑asset licences, according to Dubai‑based crypto lawyer Irina Heaver.

Regional competitors have introduced new rules and products. Hong Kong approved spot bitcoin and ether exchange‑traded funds and introduced licensing for custodians. Singapore has promoted tokenization pilots, including Project Guardian. Sandeep Nailwal, co‑founder of Polygon, said many contacts are waiting for a diplomatic settlement between the U.S. and Iran before returning to Dubai full time.

Industry sources reported commercial and regulatory activity resumed within weeks after the strikes, even as regional tensions continued. Firms continue to use Dubai for licences and operations while managing geopolitical risk by operating across multiple financial centres.