UAE Banking Decree Boosts Crypto Industry
The United Arab Emirates government has introduced a comprehensive banking decree aimed at positioning the country as a leading hub for the global crypto industry. The new regulation, known as a “sweeping banking decree,” places significant emphasis on accommodating virtual asset service providers (VASPs) and sets out clear expectations for financial institutions dealing with digital assets. Reporting via CoinDesk.
Background
The banking decree, announced by UAE authorities on November 26, 2025, reflects the nation’s efforts to regulate and support the rapidly expanding crypto sector. According to officials, the decree aims to provide “clarity and confidence for all market participants” while creating a robust legal environment for banks and financial institutions working with crypto-related clients.
Previously, many banks in the UAE hesitated to engage with crypto companies due to unclear regulatory guidelines. The new decree resolves these uncertainties by outlining specific compliance requirements and anti-money laundering protocols for both traditional banks and VASPs.
Impact on Crypto Market and Firms
This regulatory overhaul is expected to accelerate the onboarding of cryptocurrency exchanges, wallet providers, and related service providers to the UAE’s financial sector. The decree requires precise customer due diligence checks, risk assessments, and monitoring for transactions involving virtual assets.
Industry stakeholders suggest that the clear guidance could attract more international crypto firms to the UAE. An official cited by CoinDesk stated that the decree “cements the UAE’s ambitions to be at the forefront of virtual asset finance.” Several global crypto companies have already expressed interest in expanding local operations, following the decree’s publication.
What’s Next for UAE and Global Crypto Regulations
The decree is part of the UAE’s broader strategy to enhance its reputation as a progressive financial center in the crypto space. Experts indicate that the regulatory clarity should encourage innovation while minimizing illicit activity. The move also brings the UAE’s framework in line with international standards such as those set by the Financial Action Task Force (FATF).
Authorities intend to monitor the decree’s implementation and adjust its provisions as needed, reflecting global developments in crypto regulation. The full impact on capital flows and cryptocurrency adoption will become clearer as the decree is put into practice in the coming months.
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