UAE Introduces Landmark Rules, Bringing Full DeFi and Web3 Activities Under Compliance

The United Arab Emirates has enacted Federal Decree Law No. 6 of 2025, sweeping regulatory requirements for decentralized finance and Web3 operations. The legislation took legal effect on September 16, 2025, according to the Official Gazette.

The UAE has officially enacted Federal Decree No. 6 of 2025, bringing DeFi, Web3, stablecoin protocols, DEXs, and cross-chain bridges under the supervision of the central bank for the first time. Effective since September 2025, the regulation requires projects engaged in…

— Wu Blockchain (@WuBlockchain) November 25, 2025

The central bank law regulates financial institutions, insurance businesses, and digital asset-related activities. It establishes licensing requirements enforced by the Central Bank of the UAE (CBUAE) for crypto payments and digital stored value operations.

Irina Heaver, founder of NeosLegal and local crypto lawyer, described the law as one of the most consequential regulatory shifts for the region’s crypto industry. She confirmed that projects have until September 2026 to align their systems with the new framework.

UAE Regulatory Framework Ends Code-as-Defense Argument

Article 61 and Article 62 form the core provisions of the new law. Article 62 states that any person carrying on, offering, issuing, or facilitating licensed financial activity through any means, medium, or technology falls under CBUAE’s regulatory perimeter.

Heaver explained that the law brings protocols, DeFi platforms, middleware, and infrastructure providers into regulatory scope. This applies when they enable activities such as payments, exchange, lending, custody, or investment services.

DeFi projects can no longer avoid regulation by claiming they are simply code, according to Heaver. The argument of decentralization does not exempt protocols from compliance under the new framework.

Protocols supporting stablecoins, real-world assets, decentralized exchange functions, bridges, or liquidity routing may require licensing. Heaver noted that enforcement is already active across the UAE.

Penalties for unlicensed activity include fines reaching 1 billion dirhams, equivalent to $272.3 million. Criminal sanctions also apply to violations of the licensing requirements.

Dubai Enforcement Already Underway

Dubai’s Virtual Assets Regulatory Authority (VARA) began enforcement actions in October 2024. The regulator issued fines and cease-and-desist orders to seven companies operating without proper licenses.

VARA imposed fines ranging between 50,000 dirhams ($13,600) and 100,000 dirhams ($27,200) for marketing regulation violations. The authority is collaborating with local law enforcement to investigate unlicensed firms further.

VARA’s public announcement emphasized that only licensed firms are permitted to offer virtual asset services within or from Dubai. The seven sanctioned entities breached the city’s virtual asset marketing rules.

These rules require companies to provide transparent and accurate promotional content while obtaining proper licensing. VARA ordered the penalized companies to halt all virtual asset services and promotional activities immediately.

The regulator confirmed its zero-tolerance approach to firms operating without licenses. VARA stated that engaging with unlicensed entities could lead to serious financial, reputational, and legal consequences for users.

Meanwhile, the enforcement actions align with Dubai’s broader regulatory framework. The framework aims to create a secure and progressive environment for compliant entities operating within legal parameters.

VARA reiterated that licensed firms must adhere to all published rules designed to foster market transparency. The regulator continues working to ensure Dubai’s crypto ecosystem remains safe and regulated.

Following the introduction of Federal Decree Law No. 6, industry projects building or operating in the UAE face pivotal compliance decisions. The September 2026 transition deadline establishes a clear timeline for regulatory alignment.