The post UAE Regulates DeFi Activities Under Central Bank Oversight appeared on BitcoinEthereumNews.com. Key Points: The UAE’s Federal Decree No. 6 of 2025 takes effect from September 16, 2025. The decree regulates DeFi and Web3 activities under the central bank’s oversight. Heavy fines of up to 1 billion dirhams for unlicensed activities. The UAE enacts Federal Decree No. 6 of 2025, bringing DeFi and Web3 activities under central bank regulation, effective September 16, 2025, with penalties for unlicensed operations. This regulation signals significant industry change, demanding compliance to enhance financial stability and regulatory clarity, potentially reshaping the crypto landscape in the UAE. Key Developments, Impact, and Reactions The UAE’s Federal Decree No. 6 of 2025 brings DeFi and Web3 activities under the purview of the central bank, requiring licensing for payments, lending, trading, and custody services. This law, effective from September 16, 2025, eliminates the ‘pure code’ defense, requiring compliance by September 2026. With these changes, unlicensed activities will incur fines of up to 1 billion dirhams ($272 million). Importantly, while self-custodial wallets are not banned, services with payment functionalities need licensing, affecting how companies operate within the UAE. Industry reactions have been mixed, with experts welcoming the clarity while also noting the potential compliance burden. Irina Heaver, a notable crypto lawyer, remarked this law is one of the most impactful regulatory changes for the region, though major DeFi project leaders have yet to publicly comment. “The UAE’s new central bank law, Federal Decree Law No. 6 of 2025, is one of the most impactful regulatory changes for the crypto industry in the region. It brings protocols, DeFi platforms, middleware, and even infrastructure providers involved in payments, exchange, lending, custody, or investment services under regulation.” – Irina Heaver, Founder, NeosLegal Expert Perspectives on UAE’s DeFi Regulatory Landscape Did you know? The UAE’s regulatory move mirrors historical trends seen in the United States and… The post UAE Regulates DeFi Activities Under Central Bank Oversight appeared on BitcoinEthereumNews.com. Key Points: The UAE’s Federal Decree No. 6 of 2025 takes effect from September 16, 2025. The decree regulates DeFi and Web3 activities under the central bank’s oversight. Heavy fines of up to 1 billion dirhams for unlicensed activities. The UAE enacts Federal Decree No. 6 of 2025, bringing DeFi and Web3 activities under central bank regulation, effective September 16, 2025, with penalties for unlicensed operations. This regulation signals significant industry change, demanding compliance to enhance financial stability and regulatory clarity, potentially reshaping the crypto landscape in the UAE. Key Developments, Impact, and Reactions The UAE’s Federal Decree No. 6 of 2025 brings DeFi and Web3 activities under the purview of the central bank, requiring licensing for payments, lending, trading, and custody services. This law, effective from September 16, 2025, eliminates the ‘pure code’ defense, requiring compliance by September 2026. With these changes, unlicensed activities will incur fines of up to 1 billion dirhams ($272 million). Importantly, while self-custodial wallets are not banned, services with payment functionalities need licensing, affecting how companies operate within the UAE. Industry reactions have been mixed, with experts welcoming the clarity while also noting the potential compliance burden. Irina Heaver, a notable crypto lawyer, remarked this law is one of the most impactful regulatory changes for the region, though major DeFi project leaders have yet to publicly comment. “The UAE’s new central bank law, Federal Decree Law No. 6 of 2025, is one of the most impactful regulatory changes for the crypto industry in the region. It brings protocols, DeFi platforms, middleware, and even infrastructure providers involved in payments, exchange, lending, custody, or investment services under regulation.” – Irina Heaver, Founder, NeosLegal Expert Perspectives on UAE’s DeFi Regulatory Landscape Did you know? The UAE’s regulatory move mirrors historical trends seen in the United States and…

UAE Regulates DeFi Activities Under Central Bank Oversight

Key Points:
  • The UAE’s Federal Decree No. 6 of 2025 takes effect from September 16, 2025.
  • The decree regulates DeFi and Web3 activities under the central bank’s oversight.
  • Heavy fines of up to 1 billion dirhams for unlicensed activities.

The UAE enacts Federal Decree No. 6 of 2025, bringing DeFi and Web3 activities under central bank regulation, effective September 16, 2025, with penalties for unlicensed operations.

This regulation signals significant industry change, demanding compliance to enhance financial stability and regulatory clarity, potentially reshaping the crypto landscape in the UAE.

Key Developments, Impact, and Reactions

The UAE’s Federal Decree No. 6 of 2025 brings DeFi and Web3 activities under the purview of the central bank, requiring licensing for payments, lending, trading, and custody services. This law, effective from September 16, 2025, eliminates the ‘pure code’ defense, requiring compliance by September 2026.

With these changes, unlicensed activities will incur fines of up to 1 billion dirhams ($272 million). Importantly, while self-custodial wallets are not banned, services with payment functionalities need licensing, affecting how companies operate within the UAE.

Industry reactions have been mixed, with experts welcoming the clarity while also noting the potential compliance burden. Irina Heaver, a notable crypto lawyer, remarked this law is one of the most impactful regulatory changes for the region, though major DeFi project leaders have yet to publicly comment.

Expert Perspectives on UAE’s DeFi Regulatory Landscape

Did you know? The UAE’s regulatory move mirrors historical trends seen in the United States and the EU, where increased regulation often leads initially to compliance uncertainty but eventually encourages migration towards regulated solutions.

Ethereum (ETH) stands at $2,917.27, with a market cap of 352,101,267,863, experiencing a 2.34% increase over 24 hours. However, the price has decreased by 37.25% in 90 days, according to CoinMarketCap data.

Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 16:22 UTC on November 25, 2025. Source: CoinMarketCap

Coincu researchers highlight that these new rules may push the DeFi sector in the UAE towards more structured compliance infrastructure. While the initial response may involve reevaluation efforts, it could potentially lead to technological advancements to satisfy both regulatory requirements and industry growth potential.

Source: https://coincu.com/news/uae-regulates-defi-central-bank/

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