UAE DeFi Regulation: CBUAE Licensing Required by 2026
Federal Decree No. 6 expands UAE DeFi Regulation to all Web3 services and infrastructure. Under the new UAE DeFi Regulation, any protocol, DeFi platform or wallet enabling payments, trading, lending or custody must secure a CBUAE license by September 2026 or face fines up to AED 1 billion and criminal sanctions. The “code-only” defence is invalid, though individual self-custody remains permitted. Enforcement is underway and further CBUAE guidance is expected. This regulatory shift bolsters market integrity and investor protection in the UAE’s DeFi and Web3 sectors.
Neutral
The expanded UAE DeFi Regulation introduces clear licensing and compliance requirements that may slow onboarding of new DeFi projects in the short term, as providers adjust operations and secure CBUAE authorization. Fines and criminal sanctions increase risk for non-compliant platforms, likely leading to temporary market uncertainty. Over the long term, these rules can enhance investor protection and market integrity, potentially attracting institutional capital and stabilizing the DeFi sector in the UAE. Traders should monitor licensing developments and guidance for impact on token liquidity and platform operations.