UAE imposes sweeping regulation on DeFi, Web3, and stablecoins…central bank to take direct supervision

The United Arab Emirates (UAE) has launched a powerful regulatory move to bring DeFi, Web3 platforms, stablecoins, decentralized exchanges and other services under the central bank's supervision, shaking up the global digital asset regulatory landscape. The new rules reflect a determination to manage all on-chain financial services at the level of traditional financial infrastructure.

According to ETHNews on the 26th (local time), the UAE enacted the 'Federal Decree No. 6 of 2025', making central bank (CBUAE) regulation mandatory for all digital asset services that provide payment, exchange, lending, custody, and investment functions. The regulation is a strict nationwide single regulatory regime that applies equally not only to entities within the UAE but also to overseas projects accessible to local users.

The decree overrides existing free zone regulations such as Dubai's VARA and Abu Dhabi's ADGM, effectively centralizing the UAE's entire digital asset policy under the central bank. As a result, the 'code-based, decentralized structure' argument advanced by DeFi protocols can no longer be accepted as a reason to avoid supervision.

Regulated projects must obtain a license by September 2026, and noncompliance may result in severe financial penalties of up to 1 billion dirhams (about $272 million) and criminal sanctions. This is interpreted as a strong signal that UAE authorities intend to bring the digital asset industry into a clear financial regulatory framework.

However, the use of personal self-custody wallets is not completely banned, and ordinary users can hold and transfer assets as before. Business wallet services that provide financial functions such as payments or remittances must be licensed, meaning the regulatory burden on them will increase significantly.

The industry views the move as a strategic action by the UAE government to exit the Financial Action Task Force (FATF) gray list. Analysts say that by absorbing DeFi and Web3 into the traditional financial supervisory framework, the UAE is strengthening efforts to establish an image as a country with financial regulation that meets global standards.

Some say the UAE is becoming one of the most aggressive countries in establishing digital asset regimes globally, and the move could quickly reshuffle global projects' 'country-by-country regulatory compliance priorities'.