Crypto
Apr 30, 2025
In Dubai, you might stroll through a bustling market, breathing in the aromas of spices and fresh produce. You might be in awe of the different cultures reflected in the people around you. Then you find it. The cryptocurrency stall. You’ve read about how crypto can help people like you—and businesses like yours—achieve their goals. But you have some questions. Is it safe? What about regulations? How does it work? These are among many challenges you might face as you explore the world of digital assets, especially in the United Arab Emirates.
This guide will help you answer these important questions and more as you find your footing with cryptocurrency in the UAE. In particular, we’ll focus on legal solutions for crypto exchanges and Web3. In no time, you will feel more comfortable navigating the world of digital assets and how they relate to your business. As you will see, the UAE crypto has made headlines for its rapid adoption of cryptocurrency and blockchain technology. As a business owner in Dubai, you can leverage the opportunities that come with this shift to grow your company and improve your bottom line. However, it’s crucial to approach the transition carefully. Web3 will impact how your business operates, and getting legal solutions for your unique needs will help you avoid costly mistakes.
Table of Contents
Regulatory Framework of Crypto Exchange UAE
The Role of the SCA in Crypto Exchange Regulation in the UAE
The Securities and Commodities Authority (SCA) serves as the primary federal regulator for virtual assets outside the UAE's free zones. It is responsible for licensing and supervising VASPs, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Key regulations include
Cabinet Decision No. 111 of 2022: Establishes the regulatory framework for virtual assets and VASPs.
SCA Decision No. 23/RM/2020: Defines crypto assets and outlines licensing requirements.
VASPs must adhere to stringent AML/KYC procedures, implement robust compliance systems, and ensure transparency in operations.
The Role of the CBUAE in Crypto Exchange Regulation in the UAE
The Central Bank of the UAE (CBUAE) oversees fiat-to-crypto transactions and payment services involving virtual assets. Under the Stored Value Facilities (SVF) Regulation, the CBUAE mandates:
Licensing for entities facilitating fiat-crypto conversions.
Compliance with AML/CTF laws.
Implementation of customer due diligence and transaction monitoring systems.
In May 2023, the CBUAE issued guidance emphasizing the importance of due diligence for financial institutions dealing with VASPs.
Emirate-Level Regulatory Authorities
1. Virtual Assets Regulatory Authority (VARA) – Dubai
Established under Dubai Law No. 4 of 2022, VARA is the dedicated regulator for virtual assets in Dubai (excluding the Dubai International Financial Centre - DIFC). Its responsibilities include:
Licensing VASPs operating in Dubai.
Overseeing activities such as issuance, custody, exchange operations, and broker-dealer functions.
Ensuring compliance with AML/KYC standards, cybersecurity measures, and financial stability requirements.
VARA has introduced comprehensive guidelines to foster innovation while safeguarding investors.
2. Abu Dhabi Global Market (ADGM) – Financial Services Regulatory Authority (FSRA)
ADGM is a financial free zone in Abu Dhabi, with the FSRA acting as its regulatory body. Since 2018, the FSRA has:
Implemented a regulatory framework for digital assets, including cryptocurrencies.
Mandated licensing for VASPs within ADGM.
Enforced compliance with international AML/KYC standards.
ADGM's proactive approach has positioned it as an attractive jurisdiction for crypto businesses.
3. Dubai International Financial Centre (DIFC) – Dubai Financial Services Authority (DFSA)
The DFSA regulates financial services within the DIFC. Its crypto regulatory framework includes:
Defining crypto tokens and setting out licensing requirements.
Ensuring that VASPs comply with AML/KYC obligations.
Monitoring and supervising crypto-related activities within the DIFC.
The DFSA's regulations aim to balance innovation with investor protection.
Compliance and Licensing Requirements
To operate legally in the UAE, crypto exchanges and VASPs must:
Obtain the appropriate license
Depending on the jurisdiction (SCA for mainland, VARA for Dubai, FSRA for ADGM, DFSA for DIFC).
Implement robust AML/KYC procedures.
Including customer due diligence, transaction monitoring, and reporting of suspicious activities.
Ensure cybersecurity measures
Protecting digital assets and user data against breaches.
Maintain financial stability
Meeting capital requirements and ensuring solvency. Non-compliance can result in severe penalties, including fines ranging from AED 100,000 to AED 5 million (approximately $27,000 to $1.36 million), license revocation, and potential criminal charges.
Future Outlook for Crypto Regulation in the UAE
The UAE continues to position itself as a global hub for virtual assets by:
Attracting significant investments
In 2024, the country attracted over $30 billion in crypto-related investments.
Promoting innovation
Through initiatives like the Emirates Blockchain Strategy and Project Aber.
Enhancing regulatory clarity
By continuously updating and refining its legal frameworks to accommodate emerging technologies.
Benefits of Crypto Exchange in UAE
UAE’s Favorable Policies and Facilities
The UAE’s government plays a major role in overseeing its economy. As a result, a number of initiatives are aimed at attracting the growing crypto community to the country. These are opportunities and advantages for new crypto exchanges in the Emirates.
Anti-Money Laundering and Counter Terrorist Financing Framework
Since February 2024, the UAE has enforced strict AML and CTF regulations to minimize risk exposures in crypto transactions. The new frameworks help to ensure better international security standards, which crypto investors can benefit from.
Better Collaboration
In May 2023, the Central Bank of the UAE partnered with the Hong Kong Monetary Authority to improve crypto regulations. This collaborative effort will help minimize fraud and boost investor confidence, which is good news for new crypto exchanges in the UAE.
Regulatory Bodies and Licensing
Resolution number 111 in 2022 established the Dubai Virtual Asset Regulatory Authority (VARA). The agency’s primary goal is to regulate virtual asset providers that operate within the jurisdiction of the Emirates. The Securities and Commodities Authority is also responsible for licensing crypto activities and continues to be the principal regulator. These policies help facilitate safer and more transparent crypto transactions.
Investment Hub
The UAE is a major global investment hub as it promotes healthy partnerships and investments among different business entities. In February 2024, there was a deal between Binary Holdings and NES.TECH. This collaboration will improve cybersecurity prospects and give many a competitive edge in the sector. In January 2024, Bitunix and Moonpay collaborated. This will increase the accessibility of cryptos through the latter’s payment solutions. Swissborg has generated a lot of enthusiasm in the UAE for blockchain investments and cryptocurrency since 2022. Therefore, the country can become a stronghold of crypto investments.
Market Capitalization
The country's high market capitalization is advantageous. The growth rate is expected to reach $92 million from 2028 to $59 million in 2023 at a CAGR of 12.19%. The major reasons behind this high growth rate are the country's strategic positioning as a major trade and investment hub, the integration of blockchain technology, and the state's pro-crypto currency policies. Therefore, market capitalization is a major advantage in the country.
Setting up a crypto business in the UAE can be complex, but Ape Law makes it smooth. As Web3 legal experts, we handle crypto licensing, business structuring, and compliance so you can focus on growth. Whether you’re launching a new coin, token, and/or NFT, expanding operations, or optimizing for tax efficiency, our team ensures a smooth and legally sound setup. Ready to establish your business in the UAE? Book a free consultation today to easily navigate the legalities of creating a Web3 business in the UAE!
Related Reading
• DIFC Innovation Hub
• ADGM Abu Dhabi
• DIFC FinTech Hive
How to Exchange Crypto in UAE
1. Get Legal Help from Ape Law
Establishing a cryptocurrency business in the UAE can be complicated, but it doesn’t have to be. By working with Ape Law, you’ll have the support of a team of experienced lawyers who are well-versed in the legalities of operating a crypto business in the UAE. As Web3-focused legal experts, Ape Law can help you obtain the necessary licenses, structure your business, and ensure compliance with local regulations. This will help you avoid costly legal mistakes and get you up and running quickly so you can focus on growing your business.
2. Pick the Right Jurisdiction
Before licensing, you must pick a jurisdiction for your crypto business. In Dubai, you can obtain a virtual asset license from the Dubai Financial Services Authority (DFSA) if you want to operate in the mainland area or a VARA license to set up under the newly created regulatory authority for virtual assets. VARA is designed for businesses operating in the metaverse and dealing with virtual assets.
Alternatively, you can set up your business in one of Dubai’s free zones, such as the Dubai Multi Commodities Centre (DMCC) or the Abu Dhabi Global Market (ADGM). Both of these free zones offer licensing for crypto businesses and have their unique benefits. The DMCC is ideal for companies looking to establish a trading facility, while the ADGM is better suited for businesses targeting a wider investor base that may include international clients. Each jurisdiction has different application fees and regulatory requirements, so it’s important to research to find the best fit for your organization.
3. Apply for a Crypto License
You'll need to apply for a license to operate a cryptocurrency exchange in the UAE. The specific license or licenses you need will depend on the nature of your business. For example, if you want to operate a trading platform, you’ll need a crypto exchange license. You may also need a custodian license if you plan to store users’ crypto assets for safekeeping. If you only intend to match buyers and sellers of digital assets without holding user funds, you’ll need a broker/dealer license. Regardless of the type of license you require, the application process will generally involve the following steps:
Submit a comprehensive business plan detailing your business model, marketing strategy, and funding.
Establish KYC/AML policies outlining how you will verify users and monitor transactions.
Create a cybersecurity plan to protect customer data and funds.
Meet minimum capital requirements, which can be substantial in some jurisdictions.
Establish a local office and hire staff to support operations.
4. Company Setup Process
After receiving approval for your crypto license application, you can begin the process of setting up your company.
This typically involves the following steps
Choose a business structure, such as a limited liability company (LLC) or free zone company.
Submit your company formation application to the relevant authority (e.g., VARA, DMCC, ADGM).
Secure initial approval.
Finalize your office rental, corporate documentation, and bank account setup.
Pass a compliance audit for your KYC/AML systems.
5. Technology Setup
Once your company is established, you can begin setting up the technology for your crypto business.
This may involve
Partnering with blockchain developers or utilizing white-label crypto exchange solutions.
Implementing strong cybersecurity protections, such as encryption, two-factor authentication (2FA), and cold wallets.
Integrating fiat payment gateways to allow for transactions in AED and USD.
6. Compliance and Reporting
After launching your crypto business, it’s crucial to maintain compliance with local regulations to avoid costly penalties or license revocation.
This includes
Regularly reporting suspicious transactions to the UAE Financial Intelligence Unit (FIU).
Renewing your crypto licenses annually.
Following ongoing updates from regulators, especially VARA guidelines, which are subject to change as the industry evolves.
8 Best Crypto Exchanges in the UAE
1. Rain: The Best Crypto Trading Platform in the UAE
Locally licensed and fully regulated, Rain is the most trusted crypto exchange in the UAE. It operates under the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). Rain is also the only Shari’a-compliant crypto platform in the UAE, making it ideal for halal-conscious investors. Rain offers zero trading fees, with a 0.2% spread, making it one of the cheapest ways to buy and sell crypto in the UAE. The platform supports 80+ cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and USDT, with AED deposits and withdrawals via local bank transfers, debit/credit cards, Apple Pay, and Google Pay. Security is a priority, with cold storage, multi-signature wallets, and FSRA audits. Unlike offshore exchanges, Rain provides 24/7 customer support in Arabic and English, ensuring local traders get reliable assistance.
Key Features
Security: Cold storage, multi-signature wallets, FSRA audits
AED Deposit Methods: Bank transfers, debit/credit cards, Apple Pay, Google Pay
Fees: Zero trading fees, 0.2% spread
Shari’a Compliance: Certified halal investment platform
Customer Support: 24/7 in Arabic and English
2. BitGet: A Game-Changer in the UAE Crypto Exchange Sector
Bitget has emerged as a game-changer in the UAE's cryptocurrency sector, offering a cutting-edge platform tailored to the sophisticated needs of Emirati traders. This innovative exchange has rapidly captured the attention of UAE investors, thanks to its advanced features and unwavering commitment to user experience. At the core of Bitget's appeal in the UAE is its groundbreaking copy trading system, allowing Emirati users to replicate top-performing traders' strategies automatically. This feature is particularly valuable in the UAE's dynamic market, where staying ahead of trends can significantly impact investment outcomes.
Bitget's smooth integration with local payment methods and support for Emirati Dirham (AED) transactions has streamlined the trading process for UAE-based users. The platform's adherence to UAE regulations, including compliance with the Dubai Virtual Assets Regulatory Authority (VARA), ensures a secure and transparent trading environment. Its comprehensive range of trading options sets Bitget apart in the UAE market.
Bitget offers UAE crypto enthusiasts a diverse array of investment vehicles, from spot and futures trading to innovative products like leveraged tokens. The platform's robust API functionality caters to algorithmic traders, while its user-friendly mobile app appeals to on-the-go investors. With its emphasis on innovation and user empowerment, Bitget is reshaping the crypto trading landscape in the UAE, making advanced trading accessible to newcomers and seasoned professionals.
Key Features
Security: Cold storage, multi-signature wallets, FSRA audits
AED Deposit Methods: Bank transfers, debit/credit cards, Apple Pay, Google Pay
Fees: Zero trading fees, 0.2% spread
Shari’a Compliance: Certified halal investment platform
Customer Support: 24/7 in Arabic and English
3. Binance: The Largest Global Cryptocurrency Exchange
Binance is the largest global exchange, licensed under Dubai’s VARA as a Virtual Asset Service Provider (VASP). It offers spot trading, futures, staking, and lending, with access to 350+ cryptocurrencies and the deepest liquidity worldwide. AED deposits are supported via bank transfers, debit/credit cards, and Binance Pay. Trading fees start at 0.1% and can be reduced with BNB tokens. Advanced tools include margin trading, perpetual contracts (up to 125x leverage), copy trading, and API integrations. Institutional clients benefit from OTC desks and custodial solutions. Security features include cold storage, two-factor authentication (2FA), and Proof-of-Reserves audits. While Binance offers top-tier liquidity and advanced trading tools, full KYC verification is required, and its interface may be complex for beginners.
Key Features
Security: 2FA, cold storage, PoR audits, institutional-grade encryption
AED Deposit Methods: Bank transfers, debit/credit cards, Binance Pay
Fees: 0.1% spot trading fees (discounts available with BNB)
Leverage: Up to 125x on futures contracts
Trading Tools: Margin trading, copy trading, algo bots, API access
4. Gemini: A US-based Crypto Exchange
Gemini is a US-based crypto exchange with tools for new and advanced traders. Since its founding in 2014 by Cameron and Tyler Winklevoss, Gemini has prioritized creating simple and intuitive products, innovative security practices, licensing, and compliance. Gemini is among the few exchanges available in all 50 US States and more than 70 countries globally. Gemini offers trading features for all types of traders. Their ActiveTrader interface is a platform designed and built for traders and features multiple order types, advanced charting tools, and high speeds capable of executing trades in microseconds. Gemini also offers these advanced trading features through their mobile app so that you can trade on the go.
Highlighting Gemini’s commitment to security, they earned and maintain both SOC 1 Type 2 and SOC 2 Type certifications, operate as a full-reserve exchange and custodian, meaning all assets on the platform are backed 1:1, and are regulated by the New York Department of Financial Services as a NY-based company. Gemini does not require account minimums, making it easy to get started investing in cryptocurrency. It also offers competitive fees, 0.2% maker and 0.4% taker fees on its API fee schedule, and fees decrease as trading volume increases. Gemini offers new users $15 in bitcoin when they sign up and trade $100 or more in their first 30 days.
5. ByBit: A Leading Futures and Derivatives Crypto Exchange
Bybit is a leading futures and derivatives platform, offering up to 100x leverage on contracts and access to 1,600+ cryptocurrencies. It provides a full suite of trading tools, including spot markets, perpetual contracts, staking, and TradeGPT, an AI-powered trading assistant designed to enhance trading strategies. Bybit prioritizes security, storing 95% of user funds in cold wallets and conducting regular proof-of-reserves audits. AED deposits are supported via bank transfers, debit/credit cards, Apple Pay, and Google Pay, ensuring a smooth onramp for UAE traders. Despite its in-principle approval from the UAE Securities & Commodities Authority (SCA), Bybit remains available to users while working toward a full operational license, reinforcing its commitment to regulatory compliance.
6. Coinbase: A Secure and User-Friendly Crypto Exchange
Coinbase is a leading platform in the cryptocurrency space, offering users a simple and secure way to buy, sell, and manage digital assets. Founded in 2012, Coinbase has become one of the most well-established exchanges, offering a wide range of services for beginners and experienced crypto enthusiasts. The platform is known for its user-friendly interface, making it an excellent choice for those new to cryptocurrencies. With robust security measures in place, users can have peace of mind while navigating the complexities of the crypto world.
One of Coinbase's standout features is its ease of use. The platform is designed to make crypto transactions as straightforward as possible, offering smooth onboarding for new users. In addition to its web platform, Coinbase has a highly rated mobile app that offers all the functionalities needed to manage digital assets on the go. Coinbase provides users access to a broad spectrum of the crypto market, from buying and selling Bitcoin to exploring hundreds of altcoins.
Coinbase also excels in its commitment to security. The platform uses advanced security features, including two-factor authentication (2FA) and cold storage for most assets, ensuring that user funds are well-protected. Additionally, Coinbase is one of the few publicly traded exchanges, further enhancing its credibility and transparency. Users can feel confident knowing that Coinbase operates under stringent regulatory guidelines, adding an extra layer of trust.
The educational resources on Coinbase are another major advantage, especially for those new to cryptocurrency. Coinbase offers a variety of learning tools that help users understand the fundamentals of cryptocurrency and blockchain technology. The platform also incentivizes users to learn, rewarding them with crypto for completing educational modules. This feature makes Coinbase a trading platform and a great resource for personal growth in the crypto space.
Overall, Coinbase has built a reputation as a secure, user-friendly, and reliable cryptocurrency trading and management platform. With a wide range of services, including access to an expansive list of cryptocurrencies, a robust mobile app, and extensive educational resources, Coinbase is well-suited for anyone looking to dive into digital assets. Its strong focus on security and compliance further cements its status as one of the top global choices for crypto traders.
7. OKX: An Innovative Crypto Exchange in the UAE
OKX is one of the most innovative crypto exchanges in the UAE, offering a fully integrated Web3 ecosystem alongside its centralized exchange. Unlike traditional platforms, OKX bridges DeFi, NFTs, and CeFi into a single platform, allowing users to trade, stake, and earn passive income directly from its interface. With support for 350+ cryptocurrencies, OKX provides spot trading, futures, options, and margin trading with some of the lowest fees in the industry. It is a top choice for DeFi enthusiasts, thanks to its built-in Web3 wallet, which enables smooth access to Ethereum, Solana, Arbitrum, Base, and other DeFi protocols. The Proof-of-Reserves (PoR) system ensures all assets on OKX are fully backed, enhancing security and trust. Additionally, OKX supports AED deposits via bank transfers, Apple Pay, Google Pay, and debit/credit cards, making it convenient for UAE traders.
Key Features
Security: Proof-of-Reserves verification, cold storage, 2FA
AED Deposit Methods: Bank transfers, debit/credit cards, Google Pay, Apple Pay
Fees: Maker 0.08%, Taker 0.1%
DeFi Access: Staking, yield farming, liquidity pools, Web3 wallet
Trading Tools: Margin trading, automated strategies, perpetual contracts
8. Kraken: A Secure Cryptocurrency Exchange
Kraken is an ETH exchange known for its strong security protocols and wide range of supported digital assets. As a centralized platform, Kraken offers a dependable and efficient trading experience, making it a favored choice among beginner and seasoned traders. One of Kraken's primary advantages is its extensive selection of cryptocurrencies. Users can trade Ethereum along with a vast array of altcoins, providing ample opportunities for portfolio diversification.
This broad selection allows users to explore numerous investment opportunities and manage their crypto holdings effectively. Kraken's user-friendly interface enhances the trading experience by making navigation simple and intuitive. Whether managing accounts, executing trades, or exploring advanced features, users will find the platform easy to use and accessible. Beyond standard trading, Kraken offers several ways for users to earn. The platform supports Ethereum staking, enabling users to earn rewards by locking up their tokens. Kraken also provides margin and futures trading options, allowing users to leverage their positions for potentially higher returns. Additionally, users can stake Kraken's native token, KRAK, to gain extra rewards and benefits.
Kraken prioritizes security, using advanced measures such as two-factor authentication and encryption techniques to protect user assets. The platform also supports multi-chain trading, enhancing accessibility and allowing users to trade across different blockchain ecosystems. Kraken blends versatility, security, and user-friendly features to deliver an outstanding trading experience.
Related Reading
• ADGM SPV
• FSRA Abu Dhabi
• Crypto Trading in UAE
• Crypto Exchange Abu Dhabi
• Virtual Assets
Book a Free Consultation to Navigate the Legalities of Setting up a Web3 Business in the UAE
Launching a crypto business in UAE is no simple task. The country’s regulatory authorities are still developing a framework to govern crypto businesses, and the rules can change quickly. In the meantime, they have established licensing requirements that can help legitimize your operations and provide comprehensive guidelines.
Ape Law can help you obtain the necessary licenses to operate your crypto business in the UAE. For example, suppose you wish to set up a crypto exchange in Dubai. In that case, you must obtain a license from the Dubai Multi Commodities Centre (DMCC) or the Dubai Financial Services Authority (DFSA). Each of these authorities has established its own rules for obtaining a crypto license, and our team can help you navigate these complexities to get your business up and running quickly.
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• ADGM Activity List
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• DMCC Crypto License Cost
• ADGM License Categories
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