According to BitJie, the United Arab Emirates has introduced one of its most significant regulatory changes, which many cryptocurrency developers argue hampers the development of self-custody services. Federal Decree No. 6 of 2025, published in the official gazette, replaces the 2018 banking law and introduces stricter regulations. The new framework criminalizes unlicensed financial activities, with penalties including imprisonment and fines ranging from 50,000 to 500 million dirhams. Developers warn that even providing tools like Bitcoin self-custody wallets or blockchain data services without a central bank license could be considered a crime. The law also extends to companies outside the UAE if their services are accessible to local users. This shift aligns with broader digital regulation in the country and may lead to service restrictions for UAE residents.
UAE's New Crypto Law Sparks Concern Over Self-Custody and Compliance
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