Cryptocurrency Regulation View Non-AMP

Crypto Regulations in UAE- Dubai in 2025

Published by
Elena R

In 2025, Dubai crypto regulation has strengthened the city’s role as a global crypto hub. Led by the Virtual Asset Regulatory Authority (VARA), Dubai offers a clear and secure framework that attracts major platforms like Binance, Coinbase, Crypto.com, and OKX. These regulations aim to enhance market integrity while aligning with global AML standards.

Crypto Regulation in Dubai – 2025 Timeline

Here are the major crypto regulatory milestones in Dubai, listed from most recent to oldest:

September 20, 2025 – Signing of Multilateral Competent Authority Agreement

  • It will be implemented in 2027, with the first exchanges of information expected in 2028. This aims to provide clarity in crypto, while also upholding the standard og global tax transparency.

July 9, 2025 – UAE Signed a Memorandum of Understanding (MoU) with Crypto.com 

  • This initiative aims to integrate Crypto.com Pay with its traditional payment system while maintaining the highest security and compliance standards.
  • It reflects the UAE’s efforts to expand its reach, evolving customer preferences to enable greater flexibility in transactions.

June 19, 2025 – VARA Announces Deadline for Virtual Asset Service Providers (VASPs)

  • Virtual Assets Regulatory Authority (VARA) set a deadline for VASPs to comply with new rules– AML/ KYC compliance, token distributions, and marketing restrictions.
  • This is an update of VARA 2.0 to regulate structure oversight on crypto and digital assets.

May 19, 2025 – VARA announced Rulebook Version 2.0 with a 30-day compliance window.

  • Applies to all Virtual Asset Service Providers (VASPs) operating in Dubai.
  • Introduces stricter AML protocols and mandatory client screening.
  • Requires enhanced security measures and transparent reporting.
  • Full compliance deadline: June 19, 2025, or risk enforcement actions.

12 May 2025 – The Dubai Department of Finance (DOF) signs a Memorandum of Understanding (MoU) with Crypto.com.

  • The partnership enables residents and businesses to pay government fees using cryptocurrency.
  • This initiative supports the Dubai Cashless Strategy.
  • The goal is to achieve 90% digital transaction adoption by 2026.

Who Regulates Cryptocurrency in Dubai?

Dubai follows a multi-layered regulatory approach, with various authorities governing specific aspects of virtual asset activities:

  • Virtual Assets Regulatory Authority (VARA): The primary regulatory body in Dubai, established under Law No. 4 of 2022. VARA ensures compliance with AML, KYC, and cybersecurity protocols within Dubai (excluding the DIFC).
  • Dubai Financial Services Authority (DFSA): An independent regulator operating within the Dubai International Financial Centre (DIFC). It has its own framework for crypto assets, focused on investor protection and institutional clarity.
  • Securities and Commodities Authority (SCA): Oversees nationwide crypto trading, enforcing systems for due diligence, transaction monitoring, and AML compliance in line with FATF standards.
  • Central Bank of the UAE (CBUAE): Regulates fiat-to-crypto transactions and ensures that digital payments comply with federal financial regulations.

Crypto Tax in Dubai – 2025

For Individuals

  • Zero Personal Income Tax:
    Individuals in Dubai pay no income tax on cryptocurrency earnings, including profits from trading, investing, staking, or mining
  • No Capital Gains Tax:
    There is no capital gains tax on any profits from selling or exchanging cryptocurrencies for individuals
  • No VAT:
    Individuals are not required to pay VAT on crypto transactions for personal investment or trading

For Businesses

  • Corporate Tax:
    Crypto businesses with annual revenue exceeding AED 375,000 are subject to a 9% federal corporate tax on profits from crypto-related activities.
  • VAT:
    Businesses may be required to charge and remit 5% VAT on qualifying sales of goods or services paid for with cryptocurrency.
  • Regulatory Compliance:
    Businesses must register with Dubai’s Virtual Assets Regulatory Authority (VARA) and comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Summary Table

CategoryIncome TaxCapital Gains TaxCorporate TaxVAT
Individuals0%0%N/A0%
BusinessesN/AN/A9% (if > AED 375,000 revenue)5% (on qualifying sales)

Dubai imposes no personal income or capital gains tax on cryptocurrency for individuals in 2025. Crypto businesses, however, pay 9% corporate tax if their revenue exceeds AED 375,000 and may need to charge 5% VAT on certain transactions

Crypto Adoption in Dubai

Yes, cryptocurrency is highly popular and mainstream in Dubai. In 2025, the UAE—led by Dubai—has one of the highest crypto adoption rates globally. The government has legalized trading in major cryptocurrencies including Bitcoin, Ethereum, and Pi Coin.

  • The UAE boasts a 25.3% crypto ownership rate
  • Estimated AED 8 billion ($2.2 billion) economic impact from digital wallets and crypto payment integration
Metric2025 Value in UAE/Dubai
Crypto ownership rate25.3%
User penetration rate39.13%
Adoption growth210%
Crypto Obsession score98.4/100
Bitcoin ATMs in UAE1
Monthly crypto-related searches186,000

Crypto Holdings in Dubai

On August 25, Arkham Intelligence reported that the UAE government holds around 6,300 Bitcoin, valued between $700 million and $740 million. The government has become the sixth-largest Bitcoin holder in the world. 

The country is continuously putting efforts into attracting global investment with its abundant energy saved for crypto mining. 

According to Binance founder Changpeng Zhao, the UAE held approximately $40 billion in Bitcoin in 2024, underscoring the region’s deep involvement in the crypto economy.

Conclusion

Dubai continues to stand out globally as a crypto innovation leader, thanks to its strong legal structure and open regulatory environment. While many countries struggle with regulatory uncertainty, Dubai is moving forward with transparent policies and forward-thinking initiatives. With VARA at the helm and coordinated efforts from DFSA, SCA, and CBUAE, Dubai is paving the way for secure and sustainable digital asset adoption.Other Emirates in the UAE are also stepping up with enhanced crypto frameworks, strengthening the country’s unified vision for digital finance and blockchain transformation.

FAQs

Who regulates crypto in Dubai?

Dubai’s crypto space is regulated by VARA, DFSA (for DIFC), SCA, and the Central Bank of the UAE.

What is the Dubai crypto tax in 2025?

Individuals pay 0% tax on crypto; businesses pay 9% corporate tax if revenue exceeds AED 375,000, plus 5% VAT on some sales.

Is there capital gains tax on crypto in Dubai?

No, Dubai imposes zero capital gains tax on crypto profits for individuals in 2025.

How popular is crypto in Dubai in 2025?

Dubai has a 25.3% crypto ownership rate, making it one of the highest-adopting regions globally.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Recent Posts

Hyperliquid Price Prediction 2025, 2026 – 2030: Will HYPE Price Hit A New ATH?

Story Highlights The live price of the Hyperliquid crypto is . The 2025 HYPE price…

September 24, 2025

Michael Saylor Urges U.S. to Treat Bitcoin as a National Digital Reserve

Michael Saylor, the executive chairman of MicroStrategy and one of Bitcoin’s strongest supporters, is once…

September 24, 2025

PancakeSwap Price Breakout – Can Bulls Push it Beyond $3?

CAKE, the native token of PancakeSwap, has ignited fresh excitement in the crypto market following…

September 24, 2025

Crypto ETF News: Bitcoin and Ethereum ETFs Bleed $244 Million

On September 23, both spot Bitcoin and Ethereum ETFs recorded a second straight day of…

September 24, 2025

XRP, Solana, and Pepeto: What Analysts Are Saying Ahead of January

Crypto analysts are buzzing with bold forecasts, and three names keep coming up, XRP, Solana,…

September 24, 2025

Binance Backed Aster Crypto Price Set for 4-6x Rally After 2,347% Jump

Aster, a fast-rising decentralized exchange on Binance Smart Chain, has shocked the market with a…

September 24, 2025