UNDERSTANDING THE FRAMEWORKS

UAE REGULATION

The UAE operates a sophisticated multi-jurisdictional regulatory framework with five distinct competent authorities governing virtual assets across Dubai, Abu Dhabi, and federal zones based on geography and product use.

UAE REGULATORY SCOPING APPROACH

The key scoping decision in the UAE is determining whether a token is used as money (payments/remittance → CBUAE) or as an investment (platform/intermediation → VARA/FSRA/DFSA/SCA). This "perimeter & scope fit" decision anchors licensing and documentation strategy for virtual asset activities.

Regulatory Frameworks

DUBAI VARA ACTIVE
Dubai (outside DIFC) Effective May 2023
VASPs conduct and prudential regulation
The Virtual Assets Regulatory Authority is the world's first independent regulator dedicated to virtual assets. VARA oversees seven categories of virtual asset activities in Dubai, including exchange services, custody, and issuance, with comprehensive AML/CFT and consumer protection requirements.
DIFC/DFSA ACTIVE
Dubai (DIFC) Active
Crypto and investment token supervision
The Dubai Financial Services Authority regulates crypto tokens within the Dubai International Financial Centre free zone. The framework covers investment tokens and crypto tokens, applying established financial services principles to digital asset activities within DIFC.
ADGM/FSRA ACTIVE
Abu Dhabi Updated 2023
Accepted Virtual Assets (AVAs) framework
The Abu Dhabi Global Market's Financial Services Regulatory Authority operates one of the region's most established crypto frameworks. It maintains a curated list of Accepted Virtual Assets and requires firms to obtain appropriate licenses for trading, custody, and related services.
SCA ONSHORE ACTIVE
UAE Onshore Effective 2023
Investment platforms outside free zones
The Securities and Commodities Authority regulates virtual asset activities in UAE onshore territories outside of free zones. The framework provides licensing requirements for platforms offering crypto investment services to UAE residents in these jurisdictions.
CBUAE PAYMENT TOKENS ACTIVE
UAE-wide Effective Aug 2024
Stablecoin issuance and custody licensing
The Central Bank of the UAE's Payment Token Services Regulation establishes a nationwide framework for stablecoin issuance and custody. It requires licensing for payment token issuers and custodians, with reserve requirements and operational standards applicable across all UAE jurisdictions.

Official Resources

Direct access to regulatory documentation and guidance