A feared UAE Bitcoin ban is not in effect; instead, a new federal law now criminalizes providing crypto services without a Central Bank license. The regulation, effective September 16, 2025, targets self-custodial wallets, marketing, and data tools, imposing penalties up to AED 500 million ($136 million) and potential imprisonment for operators who fail to comply by the September 2026 deadline.
What the New UAE Crypto Law Actually Says
Federal Decree Law No. 6 of 2025 expands the Central Bank’s authority to cover any “facilitation” of financial activities. This is a significant escalation from the 2018 law, which lacked criminal penalties for unlicensed activities.
An analysis by the law firm Gibson Dunn on November 13, 2025, states the new law “extends the regulatory perimeter to virtual assets and decentralised finance (DeFi) models.” This now includes tools for self-sovereignty.
“Persons that engage in a licensed financial activity without a license may face imprisonment and/or a fine between AED 50,000 and AED 500 million ($13,600 to $136 million),” wrote Gibson Dunn lawyers Sameera Kimatrai and Aliya Padhani.
The 2018 Central Bank law (Federal Decree Law No. 14) lacked criminal penalties for unlicensed activities. The 2025 version adds prison time and fines.
Crackdown on Global Crypto Marketing
Article 61 defines advertising, marketing, or promoting any licensable financial activity as a regulated activity. Sending an email newsletter about crypto to UAE residents, hosting a website promoting unlicensed digital assets, or posting about crypto on social media could breach the law.
Gibson Dunn notes Article 61 “materially broadens” the regulatory perimeter and captures “communications originating from abroad,” according to the firm’s analysis. Global crypto companies, influencers, and marketing teams face compliance risks if content reaches UAE residents. This applies even if they’re based outside the country.
Why the UAE Tightened Crypto Regulations
The regulatory tightening comes as the UAE solidifies its status as a global crypto center, ranking third worldwide in the 2024 Henley Crypto Adoption Index. The move is seen as a response to pressure from the Financial Action Task Force (FATF) to implement stronger anti-money laundering controls.
The new rules shift oversight from permissive free zones to federal consolidation under the Central Bank. For global crypto businesses, the law requires a clear decision: apply for a CBUAE license before the September 2026 deadline or cease serving and marketing to UAE residents.
Chain Street’s Take
Bitcoin isn’t banned in the UAE. The country expanded licensing requirements to cover crypto infrastructure, services, and marketing. Criminal penalties now apply to unlicensed providers. Fines reach AED 500 million plus imprisonment.
For global crypto companies, operating or marketing to UAE residents without CBUAE licensing carries serious consequences under Federal Decree Law No. 6 of 2025.
