UAE Central Bank Asserts Authority Over Crypto and DeFi with Sweeping New Licensing Rules
The UAE has escalated its regulatory grip on digital assets with Federal Decree Law No. 6 of 2025, granting the Central Bank (CBUAE) jurisdiction over all crypto and blockchain operations—including DeFi protocols, stablecoins, and tokenized assets. Unlicensed entities face fines up to $272 million, signaling a hardening stance against unregulated activity.
The law expands the CBUAE’s mandate beyond currency issuance to encompass VIRTUAL asset infrastructure, decentralized exchanges, and blockchain networks. Marina D’Angelo of DLT Law notes the UAE is 'redrawing the regulatory perimeter,' though the practical impact on DeFi remains uncertain. The move consolidates the Gulf state’s ambition to dominate crypto governance while attracting compliant players.
