The law, effective September 16, 2025, expands the UAE central bank’s authority over digital finance.
It signals that DeFi platforms and blockchain projects can no longer rely on the “just code” defense to avoid regulation.
DeFi and Web3 Platforms Now Under Central Bank Oversight
Federal Decree Law No. 6 brings protocols, DeFi platforms, middleware, and infrastructure providers into the regulatory perimeter if they engage in activities like payments, exchanges, lending, custody, or investment services. Articles 61 and 62 specifically require licenses for operations involving crypto payments, digital stored value, and related financial services. The law makes it clear that claiming decentralization or operating “just as code” is no longer a shield against compliance.
The UAE’s new law (Federal Decree Law No. 6 of 2025) brings digital assets, DeFi, and emerging fintech infrastructure under full regulatory oversight. Firms offering or facilitating regulated financial services may now require a license and must comply with governance and… pic.twitter.com/gM7iytSnQf
— Digital Currencies Governance Group (DCGG) (@DigitalDcgg) November 24, 2025
For example, a decentralized exchange operating in the UAE that supports stablecoins or liquidity routing may need a license from the Central Bank of the UAE. Enforcement is already active, with penalties for unlicensed activity reaching up to 1 billion dirhams, or roughly $272 million, alongside potential criminal sanctions. While self-custodial wallets remain legal for individual users, companies providing payment or transfer services through such wallets must assess their regulatory obligations carefully.
Real-World Impact and Industry Response
Industry experts note that the law is both significant and clarifying. Irina Heaver, a UAE-based crypto lawyer, calls it one of the most consequential regulatory shifts for the region. Similarly, Kokila Alagh from Karm Legal emphasized that while individuals remain unaffected, companies operating in the UAE must evaluate whether their activities fall within the regulated scope.
H.H. Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, may Allah protect him, has issued Federal-Decree Law No. (6) of 2025, regarding the #CentralBankUAE, and the regulation of financial institutions and activities and insurance business. pic.twitter.com/AnDdiANJwI
— Central Bank of the UAE (@centralbankuae) October 11, 2025
The law gives companies until September 2026 to align their systems, providing a window for adaptation. Projects enabling real-world asset integration, cross-chain swaps, or DeFi lending are advised to consult legal advisors and assess licensing requirements. While some observers feared a potential de facto ban on crypto in the UAE, the law primarily clarifies responsibilities for businesses rather than restricting individual users.
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