- The UAE’s new central bank law regulates DeFi platforms, protocols, and infrastructure providers involved in financial services.
- The Federal Decree Law No. 6 of 2025 requires licensing for certain crypto-related activities by September 2026.
- The law eliminates the defense that DeFi projects are “just code” and extends liability beyond decentralization claims.
- The legislation does not ban self-custody wallets but applies licensing rules to companies providing regulated financial services.
- Penalties for unlicensed activity can reach up to $272 million and include potential criminal sanctions.
The United Arab Emirates has introduced Federal Decree Law No. 6 of 2025, a new central bank regulation effective from September 16, 2025. This law brings decentralized finance (DeFi), crypto protocols, middleware, and infrastructure providers into the regulatory framework if they engage in payments, exchanges, lending, custody, or investment services within the country.
Legal experts, including crypto lawyer and founder of NeosLegal Irina Heaver, describe the law as a significant regulatory shift that requires projects operating in the UAE to comply and align their systems with licensing requirements by September 2026. Under Articles 61 and 62 of the decree, any entity offering licensed financial activities “through any means, medium, or technology” must obtain authorization from the Central Bank of the UAE (CBUAE), as mentioned by Heaver.
This development means that DeFi platforms can no longer avoid oversight by claiming their operations are “just code.” The argument that decentralization exempts protocols from regulation is invalidated. Platforms supporting stablecoins, real-world assets, decentralized exchanges, bridges, or liquidity routing may need a license. Enforcement measures currently include fines up to 1 billion dirhams (approximately $272 million) and possible criminal penalties.
Regarding crypto wallets, the law addresses providers offering “stored value services,” potentially affecting wallet companies that enable payments or transfers. Karm Legal Consultants founder Kokila Alagh clarified that the regulation does not ban self-custody or non-custodial wallets, where users independently hold their assets. Instead, it expands the regulatory scope to companies delivering financial services involving such wallets.
Alagh also noted ongoing inquiries about the law’s implications and anticipates further clarifications from the Central Bank as the law is implemented. Meanwhile, individuals using their own wallets remain unaffected by the current licensing requirements.
For more details, see the Federal Decree Law No. 6 of 2025.
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