Crypto Talk in Dubai

May Update

Good Morning & Happy Friday! Stocks rose Thursday as strong earnings from Meta and Microsoft eased concerns that economic uncertainty and Trump’s proposed tariffs would derail AI-related growth. Meta’s solid Q1 results and CEO Zuckerberg’s optimistic outlook reassured investors, while Microsoft’s earnings beat and plans to increase data center investment further boosted confidence. Microsoft shares surged 7.6%, Meta gained 4.2%, and the tech sector outperformed, with AI seen as relatively insulated from trade-related risks.

Today, we cover the latest regulatory changes coming out of the UK as well as one of the premier crypto events going on in Dubai! And as always, check out the BIR’s portfolio - especially since bitcoin went soaring this week!

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Crypto News You Can’t Miss: New Regulations in the UK

Britain will introduce compulsory regulations for the cryptocurrency sector, extending existing financial rules to include crypto exchanges, dealers, and agents. This move aligns the UK more closely with the U.S. approach—treating crypto as securities—rather than the European Union’s tailored framework (MiCAR). The new rules aim to improve transparency, consumer protection, and operational resilience, especially as crypto ownership in the UK has grown significantly. Stablecoin issuers based in the UK will also come under regulation. The government expects to finalize the legislation by the end of 2025.

Finance Minister Rachel Reeves discussed crypto regulation with U.S. Treasury Secretary Scott Bessent, with further talks planned in June, signaling strong UK-U.S. cooperation. While some critics argue regulation could give the public a false sense of security, legal experts say the legislation will provide greater clarity and stability. The regulations are part of a broader effort to enhance the competitiveness of the UK financial sector, with Reeves set to unveil further plans in her Mansion House speech in July.

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Token2049 Dubai: Wall Street Meets Web3

If there was a single theme that seemed to define Token2049 Dubai this year, it wasn’t a new protocol or even a market narrative. It was the crowd. For the first time, the mix of startups, crypto natives, and builders was nearly matched, if not outnumbered, by investment bankers, institutional fund managers, and private wealth advisors. The presence of traditional finance at what has long been a developer-first event marked a clear signal: crypto is no longer a niche playground. It is becoming infrastructure.

Goldman Sachs, no stranger to digital assets, made its presence felt with a keynote that zeroed in on regulatory clarity as the next catalyst for institutional scale. Mathew McDermott, the firm’s Head of Digital Assets, laid out a simple thesis: for capital to flood in, the rules must be clear. “One of the things you need is scale. Having big institutions being able to deploy capital in a cross-section of the marketplace takes it to the next level,” he said, noting that pending U.S. stablecoin legislation could be the tipping point.

McDermott highlighted the importance of enabling financial institutions to adopt stablecoins safely and legally. “If regulations allow stablecoins to be easily adopted by financial institutions, this could accelerate the use of digital currency by big players,” he explained. For Goldman, which is already active in crypto trading and infrastructure investment, tokenization and 24/7 asset markets are not future goals—they’re near-term priorities. McDermott revealed that the firm is spinning out its Digital Asset Platform with strategic partners already lined up.

But traditional finance wasn’t the only force drawing attention. Changpeng Zhao, founder of Binance and one of the industry’s most influential voices, delivered a rousing keynote on the intersection of blockchain and artificial intelligence. Speaking to a packed crowd at Madinat Jumeirah, CZ made a passionate case for long-term thinking. “You should not invest in tokens you don’t understand just because someone mentioned them on Twitter,” he said. “You need to invest in projects you understand, with patience, in the long run.”

Zhao emphasized that blockchain’s role is expanding beyond finance into land records, identity management, and decentralized AI. “AI will perform numerous tasks using the data stored and verified on-chain,” he said. “Decentralized AI will become a key sector, and we must lead the industry with a long-term vision and patience.” The crowd—one of the largest and most enthusiastic of the conference—seemed to agree.

Token2049 Dubai confirmed what many in the space already suspected: we are entering a new phase, one where institutional interest is not just aspirational but operational. The excitement around stablecoin frameworks and decentralized AI wasn’t just narrative. It was investment thesis.