Country Manual Cryptos Overview
United Arab Emirates
BRP has updated its Country Manual Cryptos Overview for
United Arab Emirates (Def, RS, BT & RT)
| Source of changes | Answers |
|---|---|
| Law / Regulation | Yes |
| New Position of the Authorities | Yes |
| Evolution of Expert’s Interpretation | Yes |
Regulatory Template, Regulatory Summary and Behaviour Template
The Country Manual Cryptos Overview has been reviewed to ensure that the content of all the documents remain accurate and up to date.
Regulatory Changes
In June 2024, the UAE Central Bank (CBUAE) issued the Payment Token Services Regulation (Circular No. 2/2024), which will become fully applicable in August 2025. This regulation stipulates that only dirham-backed stablecoins (such as AE coin) will be allowed for payment purposes within the UAE. As a result, major cryptocurrencies such as Bitcoin and Ethereum will be restricted to i.a. trading and investment functions, while foreign stablecoins can only be used to purchase other virtual assets such as non-fungible tokens (NFTs).
Material changes
The Cryptos Overview Behaviour Template (BT) reflects the principles set out in the Regulatroy Summary document using schematic “dos and don’ts” that now cover both types of investors (Retail and Professional). However, the position with respect to Professional Investors is generally the same as for Retail Investors.
With respect to advisory services, it is emphasized that any provision of advisory/financial consultancy services in the UAE triggers local licensing requirements. Therefore, the Cryptos Overview BT now answers the relevant onshore scenarios (at target) with “Grey zone/NO” (passive solicitation) and “NO” (active solicitation).
Please note that the active provision of advisory services/financial consultancy services by foreign (unlicensed) CASPs within the framework of an ongoing advisory agreement (ongoing advice) seems only to be tolerated on a cross-border basis into the UAE (remote) provided the agreement has been requested by the client covering the relevant crypto-asset class. Accordingly, the Cryptos Overview BT now answers the relevant onshore scenarios with “Grey zone/NO” and cross-border scenarios (remote) with “Grey zone/YES – Provided the agreement has been requested by the client covering the crypto-asset class”.
On the other hand, the active provision of advisory services/financial consultancy services by foreign (unlicensed) CASPs outside the scope of a written advisory agreement (spot advice) is no longer permitted/tolerated on a cross-border basis into the UAE (remote). Accordingly, the Cryptos Overview BT now answers the relevant cross-border scenarios (remote) with “NO”.
Non-material changes
Some comments and content have been slightly reworded, without introducing substantive changes to better reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, April 15th, 2025