Legal regulation of cryptocurrency in the UAE

Since its inception, cryptocurrency has become a valuable asset in the investment world, and its popularity continues to grow. This, in particular, explains the growing interest of various governments in introducing cryptocurrency regulation.

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The United Arab Emirates demonstrates one of the most progressive approaches to cryptocurrency regulation. However, cryptocurrency regulation is not uniform across the United Arab Emirates —legislative approaches differ between the Mainland and the free zones.

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This alert outlines:

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• the general provisions and specific aspects of conducting cryptocurrency business in the Mainland, financial freezones (DIFC and ADGM), as well as the specialized crypto free zone RAK DAO;
• licensing of cryptocurrency-related activities; regulation of cryptocurrency circulation; the possibility of inheritance; and the competence of regulatory bodies overseeing cryptocurrency operations (Mainland and financial free zone regulators); and
• practical recommendations for selecting the appropriate location with the United Arab Emirates to establish a company for conducting cryptocurrency business.

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More details can be found in our attached alert.

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