$ETH The United Arab Emirates (UAE) has enacted Federal Decree-Law No. 6 of 2025, a new legal framework that formally integrates digital assets, decentralized finance (DeFi), stablecoins, wallets, and all Web3 infrastructure into traditional banking regulation, aiming to position the country as a global innovation hub.
The law requires all cryptocurrency organizations operating in or from the UAE to obtain a mandatory license from the Central Bank (CBUAE), regardless of the technology they use. The penalties for operating without a license are severe, reaching up to 1 billion dirhams (approximately $272 million).
The new framework facilitates innovation with licensing decisions in 60 days and offers a one-year grace period (until September 2026) for existing players to comply. A key element is the enhanced Shari’ah governance to promote decentralized Islamic finance (Islamic DeFi) and tokenized Sukuk, a fast-growing market.
Thus, the UAE delivers one of the most comprehensive national regulatory frameworks globally. Considering the UAE's comprehensive approach, which includes Shari’ah governance and a clear framework.
Do you think it will attract more institutional capital and DeFi projects to the region than the EU's MiCA law?
