Middle East crypto activity surged to $350B amid regional conflict, driven by wealth preservation demand.
Regulation & Gov ·
Annual blockchain transaction volume across the Middle East and North Africa reached an estimated $350 billion by 2025–2026, more than triple the roughly $100 billion recorded in 2022, according to a report from the Bitcoin Policy Institute. The institute attributes the surge partly to the Iran conflict, which prompted regional investors to shift capital into digital assets as a means of safeguarding wealth during geopolitical instability and market disruption. Countries including Egypt, Turkey, Lebanon, and Iran have seen rising adoption of Bitcoin and U.S. dollar-pegged stablecoins as currency depreciation has eroded purchasing power.
The conflict exposed divergent patterns in how different parts of the region deployed crypto markets. Bitcoin initially declined alongside broader risk assets when fighting broke out in June 2025, but investors subsequently rotated into Bitcoin from riskier cryptocurrencies, pushing its market share to a one-month high of 64.8%. The institute notes that crypto markets remained operational around the clock while traditional exchanges closed, enabling wealth preservation during economic turmoil. Separately, tracked data showed roughly $10.3 million moving out of Iranian crypto exchanges in late February and early March following military strikes.
The report distinguishes between sanctioned and conflict-affected economies, where cryptocurrencies functioned as alternatives to traditional finance, and the Gulf region's regulated crypto hubs, which continued attracting institutional investment. Whether this division persists as regional stability changes, and how policy frameworks in either zone will evolve, remain unclear.