- The UAE has banned Bitcoin under a new Central Bank law published in the Official Gazette and effective September 16.
- Despite headlines calling the law a “Bitcoin ban,” the law does not prohibit individuals from owning Bitcoin or using private wallets for personal use.
The United Arab Emirates has enacted Federal Decree‑Law No. 6 of 2025, effective September 16, significantly expanding the Central Bank’s oversight of digital asset infrastructure. Replacing the 2018 banking statute, the law introduces new licensing requirements covering a broad range of crypto-related tools and services.
Millom Ohtamaa, co-founder of Trading Protocol, posted on X stating: “I have bad news for all crypto habibis in Dubai, it’s real.”
Under Article 62, the Central Bank is now empowered to regulate not only traditional financial firms but also technology providers, such as self-custodial wallets, blockchain explorers, analytics platforms, APIs, and decentralized protocols, that “engage in, offer, issue, or facilitate” financial activity.
In Ohtamaa’s post, he claimed that simply promoting or advertising unlicensed crypto services, including via websites, social media, or email, can be classified as a regulated financial activity.
The law introduces severe punishments for non-compliance. Under Article 170, unlicensed financial activity, including facilitation through technology, can lead to imprisonment and fines ranging from AED 50,000 to AED 500 million, roughly up to US$136 million.
Over the past several years, the UAE has positioned itself as a global hub for blockchain innovation, creating crypto-friendly licensing frameworks in financial free zones such as VARA in Dubai and ADGM in Abu Dhabi.
The broad language of the law has raised fears that the once favorable crypto climate in the UAE may shift toward more centralized control of digital asset infrastructure.
The new Central Bank law extends across the entire country, including these previously lenient jurisdictions, raising questions about whether developers, exchanges, and wallet providers will continue offering services to UAE users or withdraw to avoid compliance risks.
Entities now have one year from the law’s effective date to meet the new licensing requirements. In Europe, regulators have agreed to ban cash payments above €10,000 and mandate identification for all Bitcoin transactions starting in 2027, signaling a broader trend of stricter global oversight for digital assets.
Bitcoin Adoption
SoFi Technologies has introduced SoFi Crypto, becoming the first federally chartered bank in the United States to offer built-in cryptocurrency trading directly through its app. The service allows customers to buy, sell, and store a wide range of digital assets, with Bitcoin remaining the primary focus.
Interest in Bitcoin is also rising at the central-bank level. The Czech National Bank (CNB) has launched its first digital-asset portfolio, allocating $1 million across Bitcoin, a USD-pegged stablecoin, and a tokenized bank deposit. The CNB plans to release quarterly transparency reports outlining the performance and composition of its digital holdings.
In Asia, both Taiwan’s Premier and Central Bank have committed to evaluating Bitcoin as a potential strategic reserve asset, putting Taiwan on track to become the first country in the region to test official BTC reserves, moving ahead of Japan and South Korea.
Meanwhile, in Europe, Germany’s Alternative for Germany (AfD) party has publicly supported the creation of a national Bitcoin reserve.
On the market side, Bitcoin recently fell below $100,000, currently trading at $95,670, down 5.95% over the past week. Analyst Ali Martinez noted that if BTC drops,” Below $95,930, the next key support levels for Bitcoin $BTC sit at $82,045 and $66,900.”
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Source: https://www.crypto-news-flash.com/uae-enacts-new-law-effectively-banning-bitcoin-tools-and-self-custody-wallets/?utm_source=rss&utm_medium=rss&utm_campaign=uae-enacts-new-law-effectively-banning-bitcoin-tools-and-self-custody-wallets
