Why MENA governments hate crypto but people love it?
Governments in the region don't view crypto as an innovation. Rather crypto currencies are seen as a national threat.
Except for some gulf countries, most governments in the region have not changed their regulations to embrace crypto currencies such as bitcoin and ETH. While the world is growingly engaging in crypto regulations, governments in the region did the opposite and it remains largely unregulated and/or discouraged.
Why?
Governments in the region don't view crypto as an innovation. Rather crypto currencies are seen as a national threat. This is because most national currencies are unstable and if people had a choice, they would abandon them. If you use Egyptian or Lebanese pounds, inflation has killed most of your savings due to irresponsible fiscal and monetary policies. With dollar shortages becoming a permanent feature in these national markets, public perception is negative towards national currencies and the public is actively looking for alternatives.
Many governments hence are seeking to prevent mass abandonment of their national currency which will disarm the ability to control domestic wealth and savings. This will negatively affect the political system stability.
In the gulf, the UAE for example is strongly embracing crypto. This is because the government is not worried about a mass exodus off the national currency. Instead, the UAE views crypto as a financial innovation which can help address many needs. The government pursuit of becoming a hub for crypto trading in the region is driven by its pursuit of expanding the UAE role as a global financial hub. Hence, crypto libertarian nature is in harmony with the UAE embracement of free capital movement globally.
In the future, the regional divide in approach to crypto will persist as many national currencies continue to tumble due to government policies and people seeking alternatives.