Core Insights - The UAE has implemented a significant regulatory overhaul that may effectively ban self-custody of cryptocurrencies, raising concerns about Dubai's status as a leading crypto hub [1][2]. Regulatory Changes - A new Central Bank law, effective September 16, introduces stringent licensing requirements, making it a potential criminal offense to provide basic cryptocurrency tools to UAE residents without authorization [2][3]. - The Federal-Decree Law No. 6 of 2025 replaces the 2018 banking law and establishes a more aggressive regulatory framework [2]. Criminalization of Financial Activities - The new law criminalizes all unlicensed financial activities, with penalties ranging from imprisonment to fines between AED 50,000 and AED 500 million (up to $136 million) [3]. - These penalties apply not only to companies offering financial products but also to individuals facilitating them through technology [3]. Impact on Self-Custody Tools - The law extends to self-custodial Bitcoin wallets, blockchain explorers, and market-data tools, making it illegal to offer these without a Central Bank license [4][5]. - Article 62 broadens the Central Bank's authority to include any technology that engages in or facilitates financial activities, affecting a wide range of service providers [5][6]. Marketing and Communication Restrictions - Article 61 classifies advertising, marketing, or promoting any licensable financial activity as a regulated activity, imposing strict controls on communications [7][8]. - Activities such as sending newsletters, hosting websites, or tweeting about unlicensed financial products accessible in the UAE could be deemed illegal [8].