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November 27, 2025

New UAE Sweeping Banking Decree on Crypto Position

Author By east_admin Categories News

UAE’s new financial law brings crypto and blockchain into traditional finance and under Central Bank’s supervision.

What to know:

  • The UAE’s new central bank law integrates digital assets and DeFi into traditional banking regulations, aiming to position the country as a global financial innovation hub.
  • The law requires all crypto and blockchain organizations operating in or from the UAE to be licensed by the CBUAE, with fines for unlicensed operations reaching up to 1 billion dinars ($272 million).
  • New regulations include faster licensing decisions, risk-based capital rules, and enhanced Shari’ah governance, promoting innovation and compliance in the digital asset space.

The United Arab Emirates’ new central bank law enacted recently brings digital assets and decentralized finance (DeFi) into traditional banking regulatory compliance and positions the country as a global financial innovation hub.

The new law, which was enacted in September but made public this week, contemplates fines for unlicensed operations within the country of up to 1 billion dinars ($272 million) and states all crypto and blockchain organizations that conduct business in or from the UAE must be licensed by the CBUAE regardless of the technology it uses.

The Federal Decree Law No. 6 of 2025 introduces sweeping reforms replacing the country’s Central Bank (CBUAE) framework. It brings virtual assets, DeFi protocols, stablecoins, tokenized real-world assets, decentralized exchanges, wallets, bridges and all supporting blockchain infrastructure under the central bank’s authority.

The law aims to foster innovation by providing 60-day licensing decisions, risk-based capital rules, and a full one-year grace period (until September 2026) for existing players to become compliant, according to the text of the legislation.

New licensable categories include virtual asset payments, open finance and digital wallets. Stronger fraud protections, fast-track dispute resolution up to AED 100,000 and enhanced Shari’ah governance create a clear runway for Islamic DeFi and the increasingly popular tokenized Sukuk, traditional Islamic bonds issued and traded as blockchain tokens. Last year alone, global Sukuk issuances hit $65.6 billion and are projected to grow to $2.5 trillion by 2029.

While Europe’s MiCA is still rolling out, the UAE just delivered one of the world’s most comprehensive national frameworks that treats digital assets as a core part of the financial system.

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