The Gulf Cooperation Council (GCC) region is known for its economic prowess and technological advancements, but when it comes to regulated digital asset exchange-traded products, there is a notable gap that needs to be addressed. This gap has caught the attention of experts like Andrew Forson, who highlights the repercussions of this disparity.

Forson points out that the absence of regulated digital asset exchange-traded products in the GCC region is causing capital to flow out to other jurisdictions. This outward flow not only leads to financial losses for the region but also hinders the local infrastructure development and liquidity. As a result, the GCC is falling behind compared to regions like Europe where such products are more readily available and regulated.

The lack of regulated digital asset exchange-traded products in the GCC can have various implications for both investors and the region's economy as a whole. Investors in the region may miss out on opportunities to diversify their portfolios and access new investment avenues that could potentially yield higher returns. Additionally, the absence of these products may deter international investors who prefer to operate in regulated markets, limiting the influx of foreign capital into the region.

From a broader economic perspective, the absence of regulated digital asset exchange-traded products can slow down the development of the local financial infrastructure. These products play a crucial role in fostering a robust financial ecosystem by providing a platform for transparent and secure trading of digital assets. Without such products, the GCC may struggle to keep pace with global trends in digital asset trading and innovation.

Furthermore, the lack of liquidity in the local markets due to the absence of regulated digital asset exchange-traded products can limit the growth and competitiveness of the GCC's financial sector. Liquidity is essential for efficient market functioning and price discovery, and without adequate trading platforms for digital assets, the region may face challenges in attracting and retaining both domestic and international investors.

Addressing the gap in regulated digital asset exchange-traded products in the GCC region is crucial for unlocking the full potential of the digital asset market and driving economic growth. By establishing a regulatory framework and infrastructure to support these products, the GCC can attract more investors, foster innovation, and strengthen its position in the global digital asset ecosystem.

Source: https://news.bitcoin.com/suboptimal-capital-leakage-in-gcc-due-to-lack-of-crypto-etps-warns-defi-tech-president/