Fact Check: Did the UAE Really Ban Bitcoin? Here’s the Truth in 2025
Rumors swirled this week that the UAE slammed the door on Bitcoin—but dig deeper, and the reality is far more nuanced.
The Headline vs. The Fine Print
Dubai’s financial regulators haven’t banned crypto outright. Instead, they’re tightening screws on unlicensed exchanges—classic ‘protect the system’ maneuvering while letting institutional players waltz in.
Why Traders Aren’t Panicking
Binance still operates its regional hub in Dubai. Abu Dhabi’s sovereign funds quietly stack SATs. The ‘ban’? A regulatory speed bump—not a roadblock—for a country hedging its oil bets with blockchain.
The Cynic’s Take
When a nation builds a crypto oasis but keeps the water rights, ask who really controls the faucet. Hint: it’s never the retail traders.
What sparked the confusion
The controversy began when an X user, Mikko Ohtamaa, published a post stating: “UNITED ARAB EMIRATES BANS BITCOIN. I have bad news for all crypto habibis in Dubai, it’s real.”
UNITED ARAB EMIRATES BANS BITCOIN
I have bad news for all crypto habibis in Dubai, it's real.
The New Central Bank of the UAE Law was issued in the Official Gazette and became legally effective as of September 16, 2025.
The law in particular makes it a crime to offer any… pic.twitter.com/mtCJtlDGZZ
He claimed the New Central Bank of the UAE Law makes it a crime to offer “tools,” including “self-custodial Bitcoin wallets, blockchain explorers, and coin market cap sites,” without a licence.
He also suggested that only bitcoin approved by the Central Bank would be allowed, writing: “No wallet. No Bitcoin. No problem. Even if no indirectly. Only Bitcoin you are allowed to own is one permitted by Central Bank of UAE.”
He pointed to Article 170, which introduces imprisonment and fines of up to USD 136 million for violating the law. He linked the development to what he described as the UAE’s repressive record, noting, “If you have ever visited the country, you know that even WhatsApp calls do not work.”
The post quickly spread across social media and professional networks, prompting widespread concern among residents and investors.
What the official law actually says
The law everyone is talking about is real. It’s called Federal-Decree Law No. 6 of 2025, or the new CBUAE Law. It took effect on September 16, 2025. Basically, this law brings all major financial regulations under one roof — banks, insurance companies, and payment service providers.
It introduces fresh licensing rules, gives the regulator more power to supervise the industry, and adds stronger tools to take action when companies don’t follow the rules.
However, nowhere in the law is Bitcoin banned for individual users.
Article 60 and Article 170 clearly state that carrying out a regulated financial activity without a licence is a criminal offence. Penalties range from AED 50,000 to AED 500 million, with the possibility of imprisonment.
Article 62 now says that anyone who does financial work — or helps others do it — using any kind of technology will be treated as a regulated financial service. This means even companies that only provide the tech or infrastructure for payments, trading, custody, or investment in VIRTUAL assets are now included under the law.
The law brings virtual asset financial activities under the Central Bank’s oversight if they involve payments, remittances, or holding customer assets.
The law does not criminalize holding Bitcoin, using a personal hardware wallet, running a node, or browsing a blockchain explorer. It does not state that self-custody wallets are illegal for personal use.
Companies based in DIFC or ADGM are still subject to the federal framework if they target UAE retail customers.
What the law does is broaden the licensing requirements for businesses offering crypto-related financial services, even if they claim to be “just a tech company.”
How the community responded
As the sensational claim spread, many professionals based in the UAE pushed back.
A Dubai resident wrote on LinkedIn: “When I read ‘UNITED ARAB EMIRATES BANS BITCOIN’, for a moment I thought how is it possible I missed something like that – since I live here lol – ofc, it’s not the case.”
Another user summarized: “The law is real, but ‘Bitcoin ban’ is an exaggeration – it’s actually ‘regulation of unlicensed crypto financial services.’”
A widely shared comment added further clarity: “No, the UAE did not ban Bitcoin. It didn’t even ban tools in any way or form. You can go and check the actual law.”
Another detailed breakdown stated: “The one-paragraph version is that the UAE didn’t ban Bitcoin, didn‘t ban self-custody wallets, didn‘t outlaw things like blockchain explorers or price-tracking sites. What the law mentions is very simple: if you’re running an actual financial service (payments, exchange, custody, remittances, or anything that handles money for customers) you need a license, even if you’re using crypto rails or Web3 tech to do it.”
The broad agreement among industry voices is that the law cracks down on unlicensed service providers, not everyday users.
What the claim gets wrong
The claim that the UAE “banned Bitcoin” is misleading. The law targets businesses, not individuals. The large fines apply only to companies offering regulated financial services without approval. It does not ban wallets, blockchain explorers, or personal Bitcoin ownership.
There is no requirement for individuals to use only “Central Bank-approved Bitcoin,” as claimed.
The language in the law is broad, and some interpretation challenges remain, especially around the phrase “facilitation.” But nothing in the text supports a total ban on Bitcoin use or personal tools.
Final Verdict
The UAE has NOT banned Bitcoin.
The country has brought in a major update to its financial rules, giving regulators more control over virtual asset service providers and introducing tough penalties for anyone running such services without a license. This covers exchanges, custodians, payment platforms, DeFi services, and even the tech providers that help run these financial activities.
But none of these targets are regular users. Users can still own Bitcoin, use their own wallet, run a blockchain explorer, and use similar tools without any issue.
So to put it simply: this is the government tightening regulation, not banning Bitcoin.
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