UAE Introduces New Central Bank Law for Digital Assets and DeFi

According to ChainCatcher, the United Arab Emirates has enacted a new central bank law that integrates digital assets and decentralized finance (DeFi) into the traditional banking regulatory framework. Under Federal Decree No. 6, all cryptocurrency and blockchain organizations operating within or from the UAE must obtain a license from the Central Bank of the UAE (CBUAE), regardless of the technology used. Unlicensed operations could face fines of up to 1 billion dirhams (approximately $272 million). The law encompasses virtual assets, DeFi protocols, stablecoins, tokenized real-world assets, decentralized exchanges, wallets, cross-chain bridges, and all supporting blockchain infrastructure under the central bank's jurisdiction. The new legislation provides a 60-day decision period for licensing, risk-based capital rules, and a one-year grace period for existing participants to achieve compliance by September 2026. New licensable categories include virtual asset payments, open finance, and digital wallets. Additionally, the law enhances Sharia governance, creating a clear path for Islamic DeFi and tokenized Islamic bonds.