The United Arab Emirates’ new Federal Decree-Law No. 6 of 2025 significantly expands the regulatory framework for financial institutions to incorporate decentralised finance (DeFi) and Web3 infrastructure. The legislation, effective since September 16, brings activities such as payments, exchanges, lending and custody – whether mediated by protocol code or platforms – under the jurisdiction of the UAE Central Bank.
Under the new law, any individual or entity that facilitates or offers financial services through “any means, medium or technology” must now obtain a licence. Projects involved in DeFi protocols, token bridges, decentralised exchanges or stablecoins are no longer able to claim exemption from regulation simply because they are “just code.” Non-compliance can lead to fines of up to AED 1 billion (around US$272 million) and potential criminal sanctions.
While self-custody wallets remain technically permissible for individuals, companies offering crypto services to UAE residents now face strict licensing requirements. The regulatory transition period runs through September 2026, giving firms time to align their operations with the updated supervision regime.
