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UAE Bans Unlicensed Crypto Tools, Threatening Dubai's Hub Status
15 Nov
Summary
- UAE introduces sweeping crypto regulations, criminalizing unlicensed financial activities
- New law requires licensing for even basic crypto tools like wallets and explorers
- Penalties range from imprisonment to fines up to $136 million
On September 16, 2025, the United Arab Emirates (UAE) enacted a new Central Bank law that dramatically expands licensing requirements for cryptocurrency-related activities. The Federal-Decree Law No. 6 of 2025 replaces the previous 2018 banking law, introducing a far more aggressive regulatory perimeter.
Under the new rules, offering even basic cryptocurrency tools, such as Bitcoin wallets or blockchain explorers, to UAE residents without authorization from the Central Bank is now considered a potential criminal offense. The penalties range from imprisonment to fines between AED 50,000 and AED 500 million (up to $136 million).
This shift is seen as a major blow to Dubai's status as one of the world's top crypto hubs. The law's broad language covers a wide range of crypto-related infrastructure providers, API services, wallet developers, analytics platforms, and decentralized protocols. Even companies outside the UAE may be considered in violation if their products are accessible to UAE residents.
The new regulations also restrict advertising, marketing, or promoting any unlicensed financial products in the UAE, potentially impacting the ability of crypto firms to communicate with their customers.
Crypto developers and industry experts have expressed grave concerns about the implications of these sweeping changes, warning that the UAE's actions could significantly disrupt the country's thriving digital asset ecosystem.
