UAE's new financial law brings DeFi under supervision, with a maximum fine of $272 million for violations
2025-11-25 11:09:51
The newly implemented Federal Decree No. 6 in the UAE brings decentralized finance (DeFi) and Web3 projects under the regulatory scope, requiring that platforms providing payment, trading, lending, custody or investment services must be licensed by the UAE Central Bank. The law, which came into effect on September 16, 2025, ends the "code only" regulatory exemption defense, and violators will face fines of up to 1 billion dirhams (about $272 million) and possible criminal sanctions. Legal experts clarified that the regulation does not prohibit individuals from using self-custodial wallets, but expands the scope of supervision for enterprises. Project parties need to complete the compliance adjustment before the end of the transition period in September 2026.
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