UAE Central Bank Gains Authority Over Web3 with New Regulations
- The UAE has enacted Federal Decree-Law No. (6), enhancing the Central Bank’s oversight of the Web3 sector.
- Entities must obtain licenses for activities involving virtual assets by September 2026, or face fines up to 1 billion dirhams ($272 million).
- Regulations apply to service providers, software developers, and infrastructure within DeFi and other crypto sectors.
- Certain activities, such as organizing licensed financial activities with virtual assets, require regulatory approval as per Articles 61 and 62.
- Non-custodial crypto wallets are exempt from these regulations, but payment service providers may need licensing.
This legislation reflects a growing trend among global regulators to impose stricter controls on digital finance, aiming to ensure market stability while also raising concerns about potential impacts on innovation.
With compliance deadlines set for September 2026, stakeholders in the UAE’s crypto landscape will need to adapt swiftly to these new regulations affecting their operations.(Source)
