UAE Enacts Landmark Central Bank Law Integrating Digital Assets Into National Financial Framework

The United Arab Emirates has taken a major step toward becoming a global hub for digital finance with the introduction of Federal Decree Law No. 6 of 2025. Enacted in September and recently made public, the law reshapes the country’s Central Bank regulatory framework by formally bringing digital assets, decentralized finance (DeFi) and blockchain-based financial services under the authority of the Central Bank of the UAE (CBUAE). This move positions the UAE as one of the most proactive nations in regulating the fast-evolving crypto economy.

Under the new rules, any crypto, blockchain or DeFi organization operating in or from the UAE must secure a license from the CBUAE, regardless of the technology, protocol or asset type involved. Unlicensed operations may face fines of up to 1 billion dirhams (approximately $272 million), underscoring the seriousness of the new compliance regime. The law covers a broad spectrum of digital financial activities, including decentralized exchanges, stablecoins, tokenized real-world assets, digital wallets, payment services, bridges and other foundational blockchain infrastructure.

Marina D’Angelo, head of Europe at DLT Law, told CoinDesk that while the new framework significantly expands the country’s regulatory perimeter, it’s still too early to determine its long-term effect on the UAE’s competitiveness in the global crypto and DeFi landscape. She noted that how the law is implemented will ultimately shape its impact.

The legislation introduces several mechanisms designed to support innovation rather than stifle it. These include 60-day licensing decisions, risk-based capital requirements and a full year—until September 2026—for existing entities to become compliant. The law also adds new licensable categories, such as virtual asset payment services, open finance and digital wallets, while strengthening fraud protections and establishing expedited dispute resolution for claims up to AED 100,000.

With enhanced Shari’ah governance and clearer pathways for Islamic DeFi products, the UAE is also positioning itself as a leader in tokenized Sukuk, an area already seeing rapid global growth. As Europe continues to roll out MiCA, the UAE has delivered one of the most comprehensive national digital asset frameworks to date, signaling its ambition to integrate blockchain innovation at the core of its financial system.