Crypto
Jul 5, 2025
The world of cryptocurrency is evolving rapidly, and so is the UAE's crypto market. Today's successful ICO might not meet tomorrow's standards for regulation or investor expectations. If you don't know how to launch an ICO in the UAE, you could waste valuable time and resources. This guide UAE Crypto provides a straightforward, step-by-step process for launching an ICO in the UAE, so you can know what to expect as you prepare to launch your project and attract investors.
Ape Law's Web3 legal experts can help you meet your goals as you get ready to launch your ICO in the UAE. Our team understands the unique needs of crypto projects and provides tailored legal solutions to help you navigate the process smoothly.
Table of Content
What is the UAE ICO?
An ICO, or Initial Coin Offering, is a way for blockchain projects to raise funding that is similar to an IPO but with some key differences. In an ICO, investors purchase digital tokens instead of shares in a company. Because of this, ICOs are also sometimes referred to as token offerings, token crowdfunding, and other similar terms. Blockchain terminal ICOs are used for both making and distributing tokens. During the ICO, anyone with Bitcoin or Ether can purchase cryptocurrency tokens. Avail the custom blockchain development services to build an ICO platform for your business.
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Benefits of ICO in the UAE
1. Decentralization: A New Era for Fundraising
ICOs operate in a decentralized ecosystem that enables anyone to participate without needing permission from a centralized authority. This structure allows for greater accessibility for both investors and project owners. Unlike traditional financing methods that banks or other financial institutions often control, ICOs do not have any governing rules or regulations. Therefore, ICOs are accessible to anyone worldwide. When a project launches its ICO, all that’s required is for investors to send funds to the project’s wallet address during the token sale. Otherwise, there are no restrictions.
2. Enhanced Liquidity: The Key to Successful Investing
Liquidity is crucial to any investment. For standard businesses, one of the biggest concerns is that they may not have sufficient cash on hand. The good thing for ICO investors is that they can enjoy high-volume liquidity and real-time price valuations. This means buying and selling get a lot easier.
3. Transparency: A Clear View of Your Investment
Unlike traditional fundraising methods, ICOs offer a greater degree of transparency. First, they’re built on blockchain technology, which is inherently transparent. Second, ICOs enable investors to access information about the project and its team before investing. Finally, customers can buy tokens in an ICO from anywhere in the world and at any time. This means people who use ICOs have more freedom and information than those who rely on conventional fundraising methods, since they can’t become early investors unless they know the business owners personally.
4. Cost Variations: Affordable Access to Investment Opportunities
The value of ICO tokens varies from project to project. As a result, customers can earn more money with less risk when they utilize this service. It also means that many investors can participate, which makes million-dollar ICOs possible.
Setting up a crypto business in the UAE can be complex, but Ape Law makes it smoooth. As Web3-native legal experts, we handle crypto licensing, business structuring, and compliance so you can focus on growth. Whether you're launching a new coin, token, 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 navigate the legalities of setting up a Web3 business in the UAE with ease!
UAE ICO Regulatory Framework
1. Mainland UAE – Securities & Commodities Authority (SCA)
The SCA oversees the regulation of ICOs in the mainland of the UAE. Since 2019, the SCA has treated token offerings, as they resemble securities, as regulated activities under Decision No. 23/2020. Any public ICO/STO on the mainland must obtain SCA approval, with complete prospectus disclosures or reliance on exemptions (e.g., private placement to professional investors).
AML/CFT Compliance
ICOs are considered DNFBPs under Federal AML Law 20/2018, enforcing FATF standards. Issuers must perform customer due diligence, appoint AML compliance officers, monitor transactions, and report suspicious activity.
2. Financial Free Zones
A. ADGM (Abu Dhabi Global Market) — FSRA
The FSRA oversees the regulation of ICOs in the Abu Dhabi Global Market (ADGM). The FSRA’s ICO guidance was first issued in 2017 and refined in 2020. Guidelines issued under the FSMR (2015) outline a case-by-case assessment of tokens. FSRA classifies tokens into:
Utility tokens (treated as commodities)
Security-like tokens (require regulation under FSRA’s securities framework)
Virtual currencies/currency derivatives
Regulatory Requirements
Tokens deemed to be securities require an FSRA Financial Services Provider (FSP). Offerings require a prospectus or exemptions (e.g., professional investors, <50 subscribers, investment ≥ USD 100k). Utility tokens are unregulated commodities; however, platforms trading them must still comply with AML/CFT rules, custody standards, technology governance, and consumer protection disclosure requirements. As of June 2025, the FSRA has streamlined approvals, refined capital, custody, staking, lending, and interdiction policies (e.g., excluding privacy and algorithmic stablecoins).
B. VARA (Dubai Virtual Assets Regulatory Authority)
Token Issuance Rulebook (2023): Defines three classes of permitted assets: free/non-transferable, non-redeemable non-transferable, and redeemable closed-loop tokens.
Registration: Requires submitting a whitepaper and issuer declaration at least seven business days before publication.
Regulated Activity: Any non-permitted token must undergo full VARA approval, including compliance with honesty, disclosure, risk, governance, and environmental standards.
Marketing & Licensing Controls: VARA has also implemented stringent marketing rules, effective October 2024, to ensure transparency and truthful representation of cryptocurrency services.
3. Central Bank & VAT Rules
Payment Token Regulations
The UAE Central Bank (June 2024) prohibits the use of unlicensed cryptocurrencies for payments. Only Dirham-backed tokens sanctioned by the Central Bank are permitted.
Tax VAT Exemption (Nov 2024)
Transfers and conversions of virtual assets are now exempted from VAT under Federal Decree‑Law No. 8/2017 (Exec. Reg. 100/2024).
4. AML & Licensing Across Jurisdictions
Cabinet Resolution No. 111/2022 provides clear definitions of virtual assets and mandates AML licensing requirements for VASPs. NFTs and fiat-backed tokens are exempt from AML. Free zones like ADGM and DMCC require VASPs to implement strong KYC/CDD, segregated custody, AML transaction monitoring, quarterly audits, and reporting structures.
Setting up a crypto business in the UAE can be complex, but Ape Law makes it smooth. As Web3-native legal experts, we handle crypto licensing, business structuring, and compliance so you can focus on growth. Whether you're launching a new coin, token, 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 navigate the legalities of setting up a Web3 business in the UAE with ease!
How to Launch an ICO in the UAE in 8 Steps
1. Use Ape Law to Streamline Your ICO Launch
Launching a new token in the UAE can be daunting, but you can simplify the process by teaming up with a legal expert. Ape Law specializes in crypto law and Web3 compliance in the UAE, enabling your team to focus on what matters most—building your project. The firm assists with licensing, business structuring, and regulatory compliance, allowing you to hit the ground running.
2. Research and Define Your Project Goals
Setting clear goals is a significant stage in preparing to launch an ICO. During this phase, outlining the product’s mission and vision, articulating its intended problem-solving approach, setting long-term goals, and anticipating outcomes are essential tasks. Also, conducting a thorough examination of the market and competitors helps in understanding the audience, finding market opportunities, and highlighting unique strengths. Creating a unique selling proposition that emphasizes the project value to users and investors finishes this phase.
We will not elaborate on this procedure extensively, but we want to emphasize and highlight its significance, as it primarily aids in addressing key issues and establishing a strong base for successful project execution. For those exploring how to launch an ICO or start their own ICO, this phase marks a critical step in ensuring the project’s success.
3. Develop Your ICO Token
During this stage, create the cryptocurrency that will be launched with your ICO. The token should serve a practical function in your project to appeal to investors and showcase its worth. Strategic planning is vital when considering tokenomics, including defining the overall token count, allocating it among team members, investors, and other stakeholders, as well as structuring sales phases such as pre-launch private and public rounds. This may also involve incorporating incentives, such as bonuses or discounts.
Creating ICO tokens is simplified by using existing solutions such as ERC-20 on Ethereum or BEP-20 on Binance Smart Chain. Planning for post-ICO token distribution, including the streamlining process through smart contracts, is crucial. Developing tokens effectively requires a thorough understanding of their roles and well-planned distribution strategies, which are vital to a successful ICO.
4. Create a Whitepaper and Business Plan
The ICO whitepaper is a crucial document. It persuades investors, partners, and potential users that your project is substantive and has a feasible route to success. A document that describes an issue and the solution developed to address it, the white paper explains how technology functions, including thorough descriptions of its architecture for problem-solving purposes.
Key elements of successful whitepapers include:
Executive summary
Introduction
A detailed description
A thorough examination of the technology
Tokenomics
Clear strategy for allocation
Roadmap
Introduce critical team members
Summary
A quality white paper should resemble scientific literature in clarity, conciseness, and level of detail. Nevertheless, the primary purpose of businesses releasing a white paper is to promote their product or service. The white paper must contain current data on the market situation and illustrate where you anticipate the growth potential of your products. This data is essential for showcasing growth targets and helping investors understand the rationale behind issuing specific crypto tokens.
5. Build a Secure and Scalable ICO Platform
Building a secure ICO platform is crucial for launching your project successfully and for its scalability. Key steps involve selecting dependable blockchain platforms, creating and reviewing smart contracts, integrating multi-signature wallets, and conducting thorough security assessments to safeguard funds and data. The code shall be optimized and ready to expand transactions in a scalable way. Some regulatory standards, such as KYC and AML procedures, ensure security.
6. Set Up Legal and Regulatory Compliance
Starting an ICO in 2025 requires careful rules. In the EU, the MiCA rule stipulates that issuers must hold a license, which helps clarify matters and maintains stability for stablecoins. The FCA wants to treat crypto firms like regular banks in the UK. In the US, the SEC requires tokens to be registered as securities, while FinCEN ensures that AML and KYC rules are followed.
For a good start, get legal help, sign up and obtain permits, prepare papers (like a white paper) clarify everything, and follow world rules for data safety and AML/KYC.
7. Plan and Execute a Marketing Campaign
You can read more about the marketing strategy, planning, and implementation of a marketing campaign in our article, "ICO Marketing." Social Media and Influencer Outreach. Having a robust presence on social media is essential for attracting interest in your business and engaging potential supporters.
Social media channels such as Twitter, Telegram, and Reddit are popular among cryptocurrency enthusiasts and investors. Consistent posting, active engagement in conversations, and the dissemination of insightful material can increase curiosity in your project. Partnering with influencers within the crypto sphere broadens your exposure and enhances credibility in your endeavor.
Airdrop and Bounty Programs Airdrops involve giving away tokens to users to increase awareness of the project. Participants can earn tokens by engaging in activities such as subscribing to updates or participating in promotional campaigns. Bounty programs also offer rewards for tasks such as writing articles, translating content, and finding bugs in code. This effort promotes community involvement and support for launching an ICO.
8. Launch and Manage the ICO
The key stages of managing and launching the ICO include:
Write the white paper. Write a clear paper outlining your project's goals, how it works, and financial details. Then, plan to attract potential investors.
Making an ICO marketing strategy. Utilize social media platforms, community discussions, and news updates to inform people about supporting your ICO.
Choose a token sale model. Select a type of sale (e.g., set amount, changing price) that aligns with your fundraising goals and project objectives.
Execute token sale. Ensure all technical and legal aspects are correct before starting the sale, and distribute tokens to investors.
Post-ICO management. Maintain a clear view, share frequent task updates, and participate with your group to foster faith and sustain growth over time.
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Book a Free Consultation to Navigate the Legalities of Setting up a Web3 Business in the UAE
Setting up a crypto business in the UAE can be complex, but Ape Law makes it smooth. As Web3-native 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 navigate the legalities of setting up a Web3 business in the UAE with ease!
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