UAE’s New Law Regulates DeFi and Web3 Activities
- The UAE’s Federal Decree Law No. 6 of 2025 mandates licensing for activities involving DeFi, payments, and exchanges.
- Effective since September 16, the law imposes penalties for unlicensed operations, including fines up to AED 1 billion ($272.3 million).
- Protocols supporting stablecoins or decentralized exchanges may require a license under the new regulations.
- The law does not prohibit self-custody of assets but expands regulatory requirements for companies offering financial services.
- Companies must align their operations with the law by September 2026 to avoid penalties.
This regulatory shift aims to integrate Web3 technologies into the formal financial system while ensuring compliance among service providers in the UAE.
With significant penalties outlined, businesses involved in DeFi should prepare for compliance before the September deadline to avoid hefty fines and legal repercussions.
