Dubai’s cryptocurrency regulations are no longer a thing of the future — they are already shaping today’s economic landscape. The UAE is taking bold steps to position itself as a global leader in the digital economy, including the regulation and licensing of crypto businesses.

Since the enactment of the Dubai Virtual Asset Regulation Law in 2022 and the establishment of the Virtual Asset Regulatory Authority (VARA), Dubai has become one of the most crypto-progressive cities in the world. VARA has introduced a series of regulatory frameworks requiring crypto exchanges and service providers to obtain official licenses to operate legally.

Major global crypto platforms such as Binance, Coinbase, and Bybit have already secured their licenses from VARA, demonstrating strong confidence in Dubai’s regulatory framework.

In addition to Dubai, the Abu Dhabi Global Market (ADGM) has its own robust cryptocurrency regulatory environment. The ADGM Financial Services Regulatory Authority (FSRA) has licensed key players such as Gemini and Rain, solidifying Abu Dhabi’s role in the region’s growing crypto ecosystem.

The UAE’s active embrace of crypto regulation clearly signals its ambition to become a major global hub for digital assets, serving not only the Middle East but also the wider global market.

If you’re considering starting a crypto business in the UAE, contact Visakingsdubai— your trusted business setup advisors — for the latest insights and tailored guidance.

Where to Obtain a Crypto License in the UAE

Currently, several free zones in the UAE offer crypto licenses, each with its own regulatory framework and business activity options:

1. ADGM Crypto License (Abu Dhabi Global Market)

ADGM, a fully regulated financial free zone, has been offering crypto asset regulations since 2018. Available activities include:

• Crypto exchange operations

• Crypto asset custody

• Buying, selling, and managing crypto assets

• Managing crypto assets for others

• Crypto asset marketing and promotions

2. DMCC Crypto License (Dubai Multi Commodities Centre)

Although not a regulated financial free zone, DMCC is a pioneer in crypto business licensing. Available activities include:

• Distributed ledger technology services

• Proprietary trading in crypto commodities

• NFTs e-marketplace provider

• Metaverse services provider

3. DWTC Free Zone Crypto License (Dubai World Trade Centre)

DWTC, under the supervision of the Securities and Commodities Authority (SCA), offers crypto licenses for:

• Proprietary trading in crypto commodities

• Distributed ledger technology services

4. DAFZA Crypto License (Dubai Airport Free Zone)

DAFZA currently offers crypto licenses for:

• Proprietary trading in crypto commodities

How to Get a Crypto License in the UAE

The licensing process, regulatory requirements, and associated costs will depend on your specific business activities. However, the general steps are as follows:

1. Define your business activity (e.g., crypto exchange, asset management, proprietary trading).

2. Prepare a business plan outlining operations, compliance, and financials.

3. Apply to the relevant licensing authority (ADGM, DMCC, DWTC, or DAFZA).

4. Meet regulatory compliance standards, including risk assessments and KYC policies.

5. Obtain your crypto license and commence operations.

Note: Regulatory requirements, especially for crypto exchanges and custodians, are more stringent and may include higher capital requirements.

Crypto Regulations in the UAE

• Securities and Commodities Authority (SCA): Main regulatory body overseeing crypto asset activities in the UAE.

• Central Bank of the UAE: Regulates stored value facilities and payment tokens (such as stablecoins).

• ADGM Financial Services Regulatory Authority (FSRA): Issues its own guidance aligned with SCA regulations, including specific rulebooks and standards for crypto activities.

Crypto Asset Risk Management

The UAE acknowledges the inherent risks associated with crypto assets, including:

• Money laundering

• Terrorism financing

To mitigate these risks, companies dealing in crypto must comply with:

• UAE Anti-Money Laundering (AML) and Combating Terrorist Financing laws

• ADGM’s Anti-Money Laundering and Sanctions Rules and Guidance

• International standards, including FATF (Financial Action Task Force) recommendations

Key compliance principles include:

• Adopting a Risk-Based Approach

• Conducting a Business Risk Assessment

• Implementing KYC (Know Your Customer) and due diligence procedures

• Establishing strong governance, systems, and internal controls

• Fulfilling reporting obligations and maintaining comprehensive record-keeping

Strict adherence to these principles ensures that your crypto business operates within the UAE’s legal framework and meets international best practices.