New regulations in the UAE: DeFi can no longer use "code" as a shield, with fines up to $270 million for violations.

DAOplomacy

2025-11-25 11:22:21

Abstract generation in progress

[Chain News] The UAE is serious this time. They have enacted the “Federal Decree No. 6 of 2025,” which came into effect on September 16 of this year, directly bringing DeFi and Web3 payment, lending, trading, and custody activities under the supervision of the Central Bank. The previous excuse of “I only write code”? That doesn't work anymore.

Those who dare to do these jobs without a license will face a maximum fine of 1 billion dirhams — which is approximately 272 million US dollars. This figure is quite harsh.

At least self-custody wallets haven't been completely banned, but don't get too excited. If your service involves payment functions, you still need to check if you meet the licensing requirements. The reach of regulation is quite extensive.

Companies need to hurry; compliance must be sorted out before September 2026. The window of time left for everyone is actually not very generous.

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