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UAE Expands Crypto Regulation With Sweeping DeFi Framework

UAE Expands Crypto Regulation With Sweeping DeFi Framework

Published:
2025-11-25 23:14:02
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BTCCSquare news:

The UAE has introduced a comprehensive regulatory update that brings decentralized finance (DeFi) and Web3 services under the direct supervision of the Central Bank. Federal Decree No. 6 of 2025, effective since September 16, expands the definition of regulated financial activities to include crypto payments, trading, custody, lending, and other digital-asset services.

According to lawyer Irina Heaver, this marks one of the most significant regulatory shifts in the region. DeFi projects can no longer rely on the "just code" defense, as Articles 61 and 62 mandate licensing for any entity offering financial services "through any means or technology." Penalties for non-compliance could reach up to 1 billion dirhams ($272 million).

Self-custody remains permissible for individuals, but companies offering wallet software enabling regulated services may fall under the new rules. Industry confusion is rising, and clarification from the Central Bank is anticipated, though no timeline has been provided.

|Square

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