UAE's Bold Move: DeFi and Web3 Now Under Central Bank Control

The UAE's new law brings DeFi, DEXs, and Web3 firms under central bank regulation, requiring licensing and compliance by September 2026, with fines up to $272 million for violations.

The United Arab Emirates has introduced Federal Decree Law No. 6 of 2025, bringing decentralized finance (DeFi), decentralized exchanges (DEXs), and Web3 companies under the central bank's regulatory authority. Effective from September 16, 2025, the law requires platforms and providers involved in payments, exchanges, lending, custody, or investment services to obtain licenses and comply with anti-money laundering and counter-terrorism financing standards. The regulation ends the "just code" defense for DeFi projects, imposes fines up to $272 million for unlicensed operations, and mandates compliance by September 2026. While self-custodial wallets remain legal for individuals, companies offering payment or transfer services must assess their regulatory obligations. The law aims to enhance financial stability, investor protection, and market integrity, positioning the UAE as a global leader in digital finance and providing clarity for businesses and consumers. The move is expected to attract international investment and set a precedent for other countries considering similar measures.