How to Get a Crypto License in UAE and the Rise of Islamic Crypto Banking

Explore how to obtain a crypto license in the UAE and the launch of Ruya, the world’s first Islamic bank to offer Shariah-compliant crypto trading.

By Sudhanshu Singh

The United Arab Emirates (UAE) reinforced its position as a global leader in digital assets regulation and innovation. The country’s robust regulatory ecosystem, spanning the mainland, Dubai International Financial Centre (DIFC), and Abu Dhabi Global Market (ADGM), offers clear pathways for businesses to secure crypto licenses. In a parallel development, Ruya, a UAE-based Islamic digital bank, became the first in the world to offer Shariah-compliant crypto trading through its mobile platform. Together, these initiatives reflect the UAE’s commitment to balancing innovation with regulation in the evolving crypto economy.

How to get a crypto license in the UAE

Understanding the regulatory landscape

The UAE regulates crypto assets across several jurisdictions, each governed by distinct regulatory authorities. In the mainland UAE, crypto assets fall under the jurisdiction of the Securities and Commodities Authority (SCA), while in Dubai (excluding DIFC), they are regulated by the Virtual Asset Regulatory Authority (VARA) under Dubai Law No. 4/2022. The Dubai Financial Services Authority (DFSA) oversees the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) regulates the Abu Dhabi Global Market (ADGM).

Each regulator defines crypto assets slightly differently. At the federal level, the UAE Central Bank’s Stored Value Facilities Regulation (SVF Regulation) defines crypto assets as cryptographically secured digital representations of value or contractual rights transferable electronically. The SCA, under Decision No. 23/RM/2020, views crypto assets as electronic records serving as mediums of exchange or stores of value. The DFSA defines crypto tokens as tokens used for payment or investment purposes but excludes investment tokens, while the FSRA describes crypto assets as digital representations of value without legal tender status.

Security tokens, representing shares, debentures, or other investment instruments, are treated consistently across regulators and fall under specific regimes based on their characteristics.

Step-by-step licensing process

Step 1: Determine business activity Identify whether your entity is providing virtual asset exchange, custody, advisory, or issuance services.

Step 2: Choose your regulatory jurisdiction Select the appropriate regulator—SCA for mainland, VARA for Dubai, DFSA for DIFC, or FSRA for ADGM—based on operational needs.

Step 3: Prepare required documentation

• Business plan;
• AML/KYC policies;
• Corporate governance structure; and
• Risk management framework

Step 4: Meet financial and capital requirements Capital thresholds vary by activity and jurisdiction. For example, under VARA, license fees range from AED 40,000 (US$10,890) to AED 100,000 (US$27,225).

Step 5: Submit license application Applications must be made directly to the selected authority, followed by due diligence and background checks.

Step 6: Await review and approval. Approval times can vary depending on complexity.

Step 7: Launch operations post-approval, businesses must comply with continuous obligations such as audits, financial reporting, and adherence to AML/CFT rules.

AML and compliance requirements

All crypto businesses must maintain stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance:

• Customer Due Diligence (CDD);
• Enhanced Due Diligence (EDD) for high-risk clients;
• Suspicious Activity Reporting (SAR) through the UAE’s goAML platform;
• Travel Rule compliance under Federal Decree-Law No. (20) of 2018, Cabinet Decision No. (10) of 2019, and Cabinet Resolution No. (24) of 2022; and
• Record keeping for up to 8 years.

Failure to comply can result in fines, license revocation, or criminal penalties.

UAE’s Islamic bank introduces Shariah-compliant crypto trading

In a landmark move, Ruya, a digital-first Islamic bank headquartered in the UAE, launched a Shariah-compliant crypto trading service on its mobile app. Partnering with Fuze, a licensed virtual asset provider, Ruya offers customers the ability to trade major cryptocurrencies like Bitcoin in a manner consistent with Islamic finance principles.

The service is part of Ruya’s broader commitment to ethical investment offerings, allowing users to diversify their portfolios while adhering to Islamic values such as transparency, fairness, and risk-sharing. According to Christoph Koster, CEO of Ruya, the move is designed to empower customers to “participate in the digital economy sustainably and responsibly.”

Stablecoins and their growing role in UAE’s digital finance

Stablecoins, digital assets pegged to fiat currencies like the US dollar, are gaining rapid traction in the UAE. Regulatory frameworks for stablecoins are already in place within ADGM, DIFC, and under the UAE Central Bank’s Stored Value Facilities Regulation.

In March 2023, the Central Bank initiated its Digital Dirham strategy, culminating in new rules for stablecoin operations by 2024. The UAE also approved projects like AE Coin, the first regulated digital currency developed locally, and authorized Tether’s expansion.

Read more: UAE’s New Dirham Symbol and Digital Currency: Q4 2025 Launch

According to data from Chainalysis, 93 percent of stablecoin transfers in the UAE are retail-sized, highlighting their role in enabling broader crypto participation among individuals and SMEs.

Stablecoins offer several benefits within the UAE’s growing digital finance ecosystem. They enable faster remittance options, significantly lower transaction costs, and provide greater accessibility for the unbanked population. Their design also helps reduce the volatility typically associated with traditional cryptocurrencies, making them a more stable choice for everyday transactions and cross-border payments.

In the UAE, stablecoin operations are subject to stringent regulatory requirements. Issuers must ensure full asset backing to guarantee stability, conduct regular third-party audits to maintain transparency, and comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations to safeguard financial integrity.

In brief

The UAE’s evolving regulatory framework for digital assets positions it as a leading hub for crypto innovation. Businesses seeking crypto licenses must navigate detailed but clear procedures tailored to different jurisdictions. Meanwhile, Ruya’s pioneering move into Shariah-compliant crypto trading represents a new intersection of faith and finance, setting a precedent for ethical investment in the digital economy.

For investors and businesses, understanding licensing requirements, compliance obligations, and emerging trends like stablecoins and Islamic crypto banking is essential for strategic positioning in the UAE’s dynamic digital asset ecosystem.

(US$1 = AED 3.67)

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