UAE Financial Law Clarifies Crypto Regulations, Not a Bitcoin Ban
A claim circulating on X and LinkedIn suggested the United Arab Emirates (UAE) banned Bitcoin and criminalized self-custody wallets. The post, made by Mikko Ohtamaa, co-founder of a trading protocol, created confusion among Dubai’s crypto community. However, this interpretation of the UAE’s new financial law is misleading.
Understanding the New Central Bank of the UAE Law
The law in question, Federal-Decree Law No. 6 of 2025, took effect on September 16, 2025. It consolidates financial regulations for banks, insurance companies, and payment service providers under one framework. The law strengthens licensing requirements and regulatory powers but does not ban Bitcoin ownership or personal wallets.
- Article 60 and Article 170 criminalize unlicensed financial activities with penalties up to AED 500 million and possible imprisonment.
- Article 62 extends regulation to technology providers involved in financial services, including payments, trading, custody, or investment in virtual assets.
- The law covers virtual asset payment and custodial services under the Central Bank’s supervision.
- Ownership of Bitcoin, using personal hardware wallets, running nodes, or browsing blockchain explorers remains legal.
- Free zones like DIFC and ADGM must comply with federal regulations when serving UAE retail customers.
Community and Expert Responses
Experts and local residents quickly disputed the claim of a Bitcoin ban. One Dubai resident on LinkedIn said, “When I read ‘UNITED ARAB EMIRATES BANS BITCOIN,’ I thought I missed something — but it’s not true.”
Industry professionals clarified the law targets unlicensed crypto financial service providers, not individuals. They emphasized the law requires licenses for companies offering crypto-related financial services, including exchanges, custodians, and payment platforms.
The consensus is clear: the UAE is tightening crypto service regulations, not banning Bitcoin or related personal tools.
Conclusion
The UAE has not banned Bitcoin. The new law increases regulation and oversight of virtual asset service providers. It imposes penalties on unlicensed companies but does not affect individuals’ rights to own and use Bitcoin or self-custody wallets.
This development represents enhanced regulation rather than prohibition in the UAE’s evolving crypto landscape.
