Key Highlights
- UAE’s new law now covers DeFi platforms and Web3 services under official rules.
- Companies offering payments, exchanges, lending, or custody services must get a license or face fines up to 1 billion dirhams.
- The law does not ban personal wallets; individuals can still manage their own crypto assets. The law mainly affects businesses.
The United Arab Emirates has introduced a new law that brings decentralized finance and Web3 activities under official regulation.
The law, Federal Decree Law No. 6 of 2025, became effective on September 16, 2025, and it gives the UAE central bank authority over crypto platforms, digital payments, digital stored value, and other blockchain-based financial services. Businesses are expected to comply with it before a transition deadline in September 2026.
What the Law Covers and Who It Affects
Irina Heaver, a local crypto lawyer and founder of NeosLegal, described the law as “one of the most consequential regulatory shifts” for the UAE crypto industry. She explained that DeFi platforms, protocols, middleware, and infrastructure providers are now included if they enable payments, exchanges, lending, custody, or investment services.
Heaver emphasized that saying “We’re just code” will no longer protect projects, which means fully automated or decentralized systems cannot avoid regulation. Projects handling stablecoins, real-world asset tokenization, decentralized exchanges, bridges, or liquidity routing may all need a license from the Central Bank of the UAE.
Rules, Licensing, and Penalties
Articles 61 and 62 of the decree outline the types of activities that require a license. Article 62 specifies that any person or company providing regulated financial services “through any means, medium, or technology” falls under the bank’s authority. Enforcement is already active, with fines reaching up to one billion dirhams, about $272 million, and potential criminal sanctions for unlicensed activity.
The law does not ban self-custody wallets. Kokila Alagh, founder of Karm Legal Consultants, said individuals can still use their own wallets to store and manage assets. “The law simply expands the regulatory perimeter for companies.” She added.
This means businesses providing payments, transfers, or other regulated services must comply, while personal wallets remain unaffected. Some industry observers mistakenly claimed the law bans self-custodial wallets, but Alagh and Heaver clarified this is not true. Companies are encouraged to assess their activities and seek licensing if needed. The Central Bank is expected to provide further guidance during the law’s implementation, though no specific date has been set.
The UAE continues to make efforts to ensure the region becomes the world’s Blockchain & Crypto Innovation Hub. The new law formalizes rules for DeFi and Web3, with the aim to ensure the safety of customers and prevent fraud, as well as creating a safer financial environment.
The law provides clarity for businesses, ensures transparency in digital finance operations, and allows individuals to maintain control of their personal wallets. It marks a new stage in the UAE’s approach to crypto regulation, showing the country wants to balance innovation with safety and compliance.
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