UAE Introduces Federal Decree Law No. 6: DeFi and Crypto Regulation Explained

The United Arab Emirates has enacted Federal Decree Law No. 6 of 2025, marking the first comprehensive financial legislation targeting decentralized finance (DeFi) and Web3 activities. The law, published in the Official Gazette on September 16, 2025, places digital asset operations under the regulatory oversight of the central bank.

Licensing requirements now apply to payments, exchanges, lending, custody, and investment services. While self-custody wallets remain permissible, companies must adhere to strict compliance rules. Penalties for non-compliance include fines up to $272 million and potential criminal liability.

The legislation resolves longstanding debates about regulating decentralized networks, dismissing the notion that code-based platforms can operate outside legal frameworks. Industry participants have until September 2026 to align with the new regulations.

Articles 61 and 62 of the law specify activities requiring Central Bank of the UAE licensing, particularly focusing on digital payments and stored value services. This regulatory shift establishes clear parameters for protocols, platforms, and infrastructure providers operating in the UAE's crypto sector.