Crypto Mining Firm Phoenix Technology Contemplates IPO in UAE

• Preliminary discussions have been in place for an IPO for Phoenix in Abu Dhabi.
• Cheap energy and a crypto-friendly regulatory climate have made the Gulf a popular spot.

Cryptocurrency mining gear supplier and mining facility operator Phoenix Technology is contemplating an IPO as per a Bloomberg report. The article claims that preliminary discussions have been in place for an IPO for Phoenix in Abu Dhabi. The UAE-based firm signed a $650 million contract for mining rigs in 2021, increasing its capacity to 1.4 GW.

Phoenix co-founder Bijan Alizadeh said in January that the United Arab Emirates (UAE) is the “third crypto hub in the world.” Cheap energy and a crypto-friendly regulatory climate have made the Gulf a popular spot for Bitcoin miners.

On the other hand, Marathon Digital Holdings, a cryptocurrency miner, is constructing 250 MW of facilities in Abu Dhabi with a local partner. While Crusoe Energy, a competitor, has announced plans to expand into both Oman and Abu Dhabi. 

Crypto-friendly Regulations

The United Arab Emirates (UAE) is widely regarded as one of the most crypto-friendly governments in the world, with the Dubai Virtual Asset Regulatory Authority (VARA) serving as a crypto-specific regulator.

In addition, Ras Al Khaimah (RAK), an emirate in the United Arab Emirates, has established a free trade zone for cryptocurrency exchanges. While the United Arab Emirates is generally supportive of the cryptocurrency industry, its authorities may be harsh on firms that fail to meet submission deadlines for the necessary paperwork.

Moreover, the flourishing crypto community in UAE is evidence of its dedication to encouraging creativity and development. Also, the region has fostered an environment that promotes cooperation and development in the industry, from blockchain conferences and meetings to specialized crypto-friendly regulations.

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