United Arab Emirates

SCA — Federal authority — virtual asset supervision across UAE including Free Zones (Cabinet Resolution 111/2022)

VARA — Dubai virtual asset regulation (excluding DIFC) — 7 activity categories. World's first standalone VA regulator.

ADGM FSRA — Abu Dhabi Global Market — institutional focus, common law jurisdiction, ex-FCA/MAS staff

DFSA — DIFC — investment/security tokens only, updated framework Jan 2026

CBUAE — Central bank — broader financial ecosystem, goAML reporting

Securities and Commodities Authority (SCA): This is the primary federal authority responsible for supervising and regulating virtual asset activities across the entire UAE, including in Free Zones. This mandate stems from Cabinet Resolution No. 111 of 2022. The federal framework has been updated by SCA Board of Directors Decision No. 4/R.M/2026.

Virtual Asset Regulatory Authority (VARA): Specific to Dubai (excluding the Dubai International Financial Centre, DIFC). VARA is central to Dubai's strategy to become a crypto hub, providing a clear and secure framework. Its rulebooks have been finalized since 2023, with active supervision and VASP licensing ongoing since at least 2026, attracting major platforms.

The DFSA brought into force updated regulatory frameworks for Crypto Tokens in the DIFC in November 2024 (not January 2026)

**Abu Dhabi Global Market / Financial Services Regulatory Authority (ADGM/FSRA):** Regulates the Abu Dhabi Global Market free zone.

**Central Bank of the UAE (CBUAE):** Also has a role in the broader financial ecosystem.

**Licensing and Capital Requirements:** The federal framework (SCA) is expected to establish eight licensed financial activities for virtual assets, with minimum capital requirements ranging from AED 500,000 to AED 4 million (neoslegal.co, 2026). VARA in Dubai also outlines key licensing requirements and compliance standards for crypto businesses (coinbro.pro, 2025).

Federal UAE regulations (Decision No. 4/R.M/2026) prohibit algorithmic stablecoins at the federal level. Privacy token prohibitions originate from DIFC/DFSA rules (effective January 2026), not federal regulations. The two restrictions operate under different jurisdictional frameworks.

**Market Integrity and AML:** Dubai's VARA framework is designed to enhance market integrity and ensure alignment with global Anti-Money Laundering (AML) standards (coinpedia.org, 2025).

Real-World Asset (RWA) Tokenization: Key developments including institutional adoption and regulatory advancements occurred in 2025.

**Taxation:** The UAE maintains a policy of zero capital gains tax and zero personal income tax on crypto assets. A corporate tax of 9% applies only when specific conditions are met (Source 8 - "UAE Crypto Regulation 2026: VARA Licensing and Dubai Framework ...").

The **Central Bank of the UAE (CBUAE)** is responsible for the licensing, governing, and supervision of financial institutions in the United Arab Emirates.Central Bank of the UAE

CBUAE issues licenses for various banking operations, including conventional banks, Islamic banks, finance companies, and moneychangers, with centralized oversight.UAE Banks by License Type

CBUAE regulates activities such as taking deposits, providing credit facilities, stored value facilities (including cryptocurrencies), and payment services.Baker McKenzie Resource Hub

Firms and individuals must apply to the CBUAE for authorization to carry out regulated financial activities, submitting official application forms and supporting documents to the Licensing Division.Central Bank of the UAE

For Restricted Licence Banks, applicants must obtain a specific licence from CBUAE, meeting requirements on minimum capital, ownership, trade name, and a three-year business plan, but the CBUAE now also offers alternative licence categories such as Stored Value Facilities (SVF) licences with different requirements.

Minimum capital for Restricted Licence Banks: AED 100 million fully paid-up at branch level plus AED 2 billion at entity level for foreign bank branches; AED 1 billion for all other cases.Tamimi Turtl

Retail Payment Service Providers (PSP) and card schemes require a CBUAE licence under the Retail Payment Services and Card Schemes (RPSCS) regulation, which has a tiered licensing framework distinct from the earlier Category I-IV structure with escalating capital requirements.

The New CBUAE Law expands 'Licensed Financial Activities' to include open finance services, virtual asset payment services, and technology platforms enabling financial services, but the evidence does not support a compliance deadline of 16 September 2026.

The UAE licensing process involves in-principle approval, incorporation of a mainland entity, share capital deposit, key appointments, and office space, but in many Emirates and free zones can be completed in weeks or even days, not necessarily taking around one year.

Federal Decree-Law No. 26 of 2021 is the current and operative AML/CFT law in the UAE, superseding Federal Decree No. 20/2018.

VARA's licensing rules include evolving AML/CFT/sanctions requirements as updated in the Virtual Assets and Related Activities Regulations 2023 and subsequent clarifications (e.g., token issuance rules for RWAs and stablecoins), but the specific source link (securevisanow.com) is a third-party site that may not reflect the latest official regulatory framework.

The 2022 joint guidance banning banks from using WhatsApp for customer services has been superseded or replaced by the New CBUAE Law of 2023, and no evidence confirms the referenced guidance remains current under the new regulatory framework.

OFAC SDN designations applicable in the UAE are updated continuously and are not limited to a single FAQ topic; the FAQ at ofac.treasury.gov/faqs/topic/1626 is a general reference, not a jurisdiction-specific or definitive source for UAE sanctions compliance.

**Federal and free zone implementation**: UAE is listed among jurisdictions that have implemented the Travel Rule, aligning with FATF Recommendation 15 and 16. VARA Rule III.G requires VASPs to comply with all federal AML-CFT laws, including Travel Rule, guided by FATF Interpretive Note to Recommendation 15, and to monitor for threshold circumvention.[3][5][6]

**Key regulatory updates**: FSRA revised its AML and Sanctions Rules and Guidance to clarify Travel Rule application to VAs in wire transfer provisions; VARA enforces it as a minimum standard potentially supplemented by federal rules.[1][6]

**GCC context**: UAE uses a layered approach, with federal rules and free zone variations (e.g., ADGM has effectively no threshold).[3]

**Federal/ VARA benchmark**: AED 3,500 (approximately $950 USD), mirroring federal AML rules; VARA aligns with this while monitoring for evasion.[3][6]

**ADGM variation**: Effectively no threshold (zero-threshold regime).[3]

**Global FATF recommendation**: $1,000/€1,000, but UAE sets jurisdiction-specific thresholds; no uniform zero-threshold like EU.[3][4]

**All licensed VASPs**: Applies to Virtual Asset Service Providers handling VA transfers, including exchanges and custodians, requiring sender/recipient identification and counterparty checks under federal AML-CFT laws.[1][3][6]

**Scope**: Full responsibility on VASPs for FATF-aligned compliance, beyond standard AML; enforced in licensing regimes like VARA and ADGM.[3][6]

**Data sharing and controls**: VASPs must collect/share originator and beneficiary info (per FATF standards), implement policies guided by FATF Interpretive Note to Recommendation 15, and detect threshold circumvention via transaction monitoring.[1][6]

**Challenges noted**: Interoperability issues with global systems, no mandated specific tech solution; UAE focuses on federal alignment with free zone supplements.[3][4][6]

**Supervision**: UAE contributes to FATF's 2025 trends where 73% of jurisdictions have legislation, shifting to enforcement, though many lack robust supervisory actions yet.[2][3]

Binance has secured full FSRA license under ADGM's three-pillar regulatory model, superseding any earlier AML revision discussions.

Federal AML laws (underlying): Enforced via Central Bank and VARA/FSRA/ADGM, per sources[3][6]

Engaging in Licensed Financial Activities without a licence is a criminal offence, punishable by imprisonment and/or fines from AED 50,000 to AED 500 million under the UAE Central Bank's consolidated 2023/2025 regulatory framework.

Maximum administrative fines increased to AED 1 billion under the New CBUAE Law, with higher sanctions for unlicensed activity and authorised individuals.White & Case

CBUAE conducts regular supervision and examinations covering capital adequacy, risk management, and compliance.UAE Banks by License Type