The United Arab Emirates has entered a new chapter in digital finance. The Federal Decree Law No. 6 of 2025, effective since September but introduced publicly only this week, reshapes the regulation of cryptocurrencies, decentralized finance, and tokenized assets. For the first time, the entire virtual asset ecosystem falls under the direct supervision of the UAE Central Bank — a move designed to position the country as a global hub for financial innovation.

Digital assets under central bank oversight

The new framework represents the most extensive update to the UAE’s banking system in modern history. Any business offering or operating services related to cryptocurrencies or Blockchain technology must now obtain a license from the central bank, regardless of the underlying technology. Penalties for violations can reach up to one billion dirhams (around $272 million).

The rules apply to cryptocurrencies, DeFi protocols, stablecoins, decentralized exchanges, tokenized real-world assets, and infrastructure components such as digital wallets and Blockchain bridges.

Regulation designed to support innovation, not hinder it

Marina D’Angelo, head of the European division at DLT Law, says the decree significantly reshapes the regulatory landscape. However, it remains too early to assess how the new framework will affect the UAE’s ambitions to become a global crypto capital.

The law is built to foster innovation: a 60-day licensing window, risk-adjusted capital requirements, and a one-year transition period lasting through September 2026. Newly regulated areas include virtual asset payments, open finance services, and digital wallets.

The reform also prioritizes consumer protection through faster dispute resolution up to 100,000 dirhams, stricter anti-fraud rules, and strengthened governance aligning with Islamic finance principles.

UAE moves ahead of Europe

While Europe continues its gradual rollout of MiCA, the UAE is launching one of the most comprehensive national frameworks globally. Digital assets are treated not as an experiment but as a fully integrated part of the financial system — offering greater legal certainty for the crypto industry and signaling the country’s determination to lead in financial innovation.

Sources:

https://rulebook.centralbank.ae/en/rulebook/federal-decree-law-no-6-2025-regarding-central-bank-regulation-financial-institutions-and

https://www.coindesk.com/policy/2025/11/26/new-uae-sweeping-banking-decree-looks-to-cement-country-s-global-crypto-position