Crypto regulation in the United Arab Emirates
Several regulators depending on where a firm is based, a central bank law that reaches DeFi, and no personal income tax.
Crypto is legal in the United Arab Emirates. Which regulator licenses a crypto firm depends on where it operates: Dubai's Virtual Assets Regulatory Authority (VARA), the financial free zones ADGM and DIFC, or the federal Capital Market Authority (called the Securities and Commodities Authority until January 1, 2026). The central bank decides what can be used for payments, and a central bank law in force since September 16, 2025 extends licensing to crypto payment and DeFi services, with a transition to September 2026. Individuals pay no income or capital gains tax.
Last reviewed: November 2026. Facts on this page were checked against official sources on November 4, 2026.
the United Arab Emirates at a glance
| Owning crypto | Legal, including self-custody. |
|---|---|
| Buying and selling | Through firms licensed by VARA, ADGM's FSRA, DIFC's DFSA or the federal Capital Market Authority. |
| Paying with crypto | Mainland payments may use only licensed dirham-backed payment tokens; crypto is not legal tender. |
| Exchange licensing | VARA (Dubai), FSRA (ADGM), DFSA (DIFC), Capital Market Authority (federal, formerly SCA); CBUAE for payment tokens. |
| Mining | Legal with licensing; some large licensed operations. |
| Tax | No personal income or capital gains tax; transfers of virtual assets exempt from VAT. |
| Stablecoins | CBUAE Payment Token Services Regulation (2024): only licensed AED-backed tokens for payments. |
| Restrictions and bans | Unlicensed activity faces fines up to AED 1 billion under the 2025 central bank law. |
Owning crypto
Owning crypto is legal, and the 2025 central bank law does not ban self-custody wallets.
Buying and selling
Crypto businesses need a licence from the right authority. In Dubai (outside the DIFC free zone), that is VARA, set up under a 2022 Dubai law. Abu Dhabi Global Market's Financial Services Regulatory Authority and the Dubai International Financial Centre's DFSA license firms in their free zones. The federal Capital Market Authority, which was called the Securities and Commodities Authority until it was renamed on January 1, 2026, covers the rest of the country. Check the regulator's public register before using a platform.
Paying with crypto
Under the central bank's Payment Token Services Regulation (2024), only licensed dirham-backed payment tokens may be used to pay for goods and services in the UAE mainland; foreign stablecoins can be used to buy virtual assets but not for general payments. Crypto is not legal tender.
Exchange licensing
Federal Decree Law No. 6 of 2025, a new central bank law in force since September 16, 2025, requires a central bank licence for activities including crypto payments and stored value, and for anyone who facilitates a licensed activity "through any means, medium, or technology." Lawyers read this as reaching DeFi protocols and infrastructure that enable payments, exchange, lending or custody for UAE users. Existing businesses had until September 2026 to comply. Unlicensed activity can draw fines up to AED 1 billion.
Mining
Mining is legal for licensed businesses, and there are large mining sites in Abu Dhabi.
Tax
The UAE has no personal income tax and no capital gains tax for individuals. Businesses pay 9% corporate tax on profits above a threshold. A 2024 change made transfers and conversions of virtual assets exempt from VAT, backdated to January 1, 2018.
Stablecoins
Dirham-backed payment tokens must be issued by central bank licensees.
Restrictions and bans
- Fines of up to AED 1 billion for unlicensed financial activity under the 2025 law.
- VARA restricts marketing and bans anonymity-enhancing (privacy) coins.
What changed recently
Dubai creates VARA.
Central bank Payment Token Services Regulation.
VAT exemption for virtual asset transfers, backdated to 2018.
Federal Decree Law No. 6 of 2025 takes effect.
The federal Securities and Commodities Authority becomes the Capital Market Authority.
Transition period for existing firms under the 2025 law ends.
- The central bank is expected to clarify how the 2025 law applies to DeFi protocols and wallet providers.
This page summarizes the rules for general understanding. Laws change, and how they apply depends on your circumstances. For a decision that matters, check the official sources below or ask a qualified local adviser.
Frequently asked questions
Is crypto legal in the UAE?
Yes. Firms need a licence from VARA, ADGM, DIFC or the federal Capital Market Authority (formerly the SCA), depending on where they operate.
Do you pay tax on crypto in the UAE?
Individuals pay no income or capital gains tax. Businesses may owe 9% corporate tax.
Where to next
Sources
- Virtual Assets Regulatory Authority (Dubai)
- Central Bank of the UAE
- Capital Market Authority, formerly the Securities and Commodities Authority (UAE)
- UAE SCA renamed CMA from January 1, 2026 (Regulation Tomorrow, January 2026)
- UAE's new financial law extends to DeFi (Cointelegraph, 2025)
Written for beginners and checked against the sources listed. Last reviewed November 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.