UAE Introduces Sweeping Regulations for DeFi and Web3 Sector

The United Arab Emirates has enacted Federal Decree Law No. 6 of 2025, marking a pivotal moment for cryptocurrency regulation in the region. Effective September 16, 2025, the legislation brings decentralized finance platforms and Web3 services under the central bank's oversight, with full compliance required by September 2026.

Legal expert Irina Heaver characterizes this as a watershed moment for UAE's crypto industry. The law casts a wide net, encompassing DeFi protocols, middleware providers, and infrastructure services facilitating payments, exchanges, lending, or custody operations. Notably, the regulation closes the 'we're just code' loophole, bringing even fully automated systems under scrutiny.

While personal wallets remain unaffected, commercial entities face stringent requirements. Unlicensed operations risk penalties reaching 1 billion dirhams ($272 million), with particular attention to stablecoin issuers and real-world asset tokenization platforms. The framework establishes clear parameters for digital payments, stored value systems, and blockchain-based financial services.