Dubai Is the Latest Government To Roll Out Crypto Law, Set Up Regulator

The emirate’s latest digital asset law proposal excludes NFTs and CBDCs

article-image

Sheikh Mohammed bin Rashid Al Maktoum, Dubai ruler | Source: Shutterstock

share

key takeaways

  • Dubai Financial Services Authority reveals report on crypto token regulation
  • Proposal calls for “privacy tokens” and “algorithmic tokens” to be banned

Dubai has revealed its first cryptocurrency legislation, overseen by a new regulatory agency.

“The future belongs to whoever designs it,” Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum wrote in a tweet Wednesday, translated to English. “Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector. Our step is a leap towards the future aimed at developing this sector and protecting all investors in it.” 

The 56-page proposal, released by the Dubai Financial Services Authority (DFSA) Wednesday, focuses on crypto tokens and follows an October report on digital tokens.

The proposed law focuses on “crypto tokens,” which does not include non-fungible tokens (NFTs), central bank digital currencies (CBDCs) and utility tokens, including play-to-earn gaming tokens with “non-financial” uses.

“We are proposing to exclude NFTs from the scope of our current proposals on the basis there is no Financial Service being provided,” the report said. “However, this comes with a strong caveat that this exemption will depend on the characteristics of the NFT and its function, and not what terminology or marketing terms are used.”

The Dubai Virtual Asset Regulation Law calls for the ban of “privacy tokens,” designed to obscure token holders and trading patterns, and “algorithmic tokens,” which interfere with supply and demand to control price.

The proposal is currently in the public consultation and amendment phase. The next step is to submit it to higher government authorities for approval.

The final version of the law will be made public once it is complete.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Nillion_DeSci_Report_Template.png

Research

Nillion’s Monad Integration is poised to catalyze the next phase of DeSci’s evolution by eliminating key privacy bottlenecks. This synergy allows researchers, institutions, and DAOs to exchange sensitive data and insights securely while managing governance and payments onchain.

article-image

Sui Foundation told Blockworks it’s not currently supporting Seed, and Mysten Labs only helped Seed with its smart contracts.

article-image

Bitcoin hit this little-known milestone days before Pizza Day

article-image

Blockworks Research also thinks that net new assets (NNAs) are a metric to keep an eye on

article-image

The Republican-sponsored GENIUS Act has passed a key procedural vote in the US Senate. 

article-image

Cash enables law evasion at a small scale and crypto enables it on a large scale

article-image

Vibe coders are shipping faster than you think