Fintech 2026

UNITED ARAB EMIRATES Law and Practice Contributed by: Arnold Krutilins and Gabrielle Margerison (nee Lowe), White & Case LLP

In the DIFC, the Dubai Financial Services Authority (the “DFSA”) regulates virtual assets and the provision of connected financial services. The DFSA’s regulatory framework is set out in the DFSA Rulebooks, which distinguish between investment tokens as either secu - rity tokens or derivative tokens, and crypto tokens. The provision of payment services is also primarily regu - lated in the DFSA Rulebooks. The DFSA implemented major updates to its crypto token regulatory frame - work effective 12 January 2026 (including changes to the approach to assessing/approving crypto tokens, with specific treatment retained for fiat crypto tokens (stablecoins)). 2.3 Compensation Models The compensation models vary depending on the nature of a fintech’s business and the regulatory rules applicable to the fintech. Certain restrictions may apply depending on the sector in which a fintech operates. The authors are not aware of any specific regulatory restrictions in “onshore UAE” or “offshore UAE” with respect to the compensation models that industry participants may use to charge customers. However, where a fintech chooses to provide Islamic finance, it will be required to comply with the principles of Sha - ria in determining its compensation model, including considering matters such as the charging of interest. 2.4 Variations Between the Regulation of Fintech and Legacy Players Regulators in “onshore UAE” and “offshore UAE” do not differentiate between fintech participants and legacy participants per se. Differences in regulatory regimes are generally based on the risks associated with the activity being carried out. For example, a bank will attract higher levels of regulatory oversight and supervision than a payment services business offering payment initiation services and account infor - mation services. 2.5 Regulatory Sandbox In 2021, the CBUAE established a regulatory sandbox in “onshore UAE” for the insurance sector. In 2021, the CBUAE signed two separate memoranda of under - standing with the ADGM and the DIFC to introduce a co-sandbox programme to permit fintechs to test

innovative solutions under the existing sandbox pro - gramme. Most recently, in April 2024 the CBUAE published the Sandbox Conditions Regulation. As described in 1.1 Evolution of the Fintech Market , the Sandbox Con - ditions Regulation has been issued to permit partici - pants enrolled in the Regulatory Sandbox to test their technologically innovative financial business models, products, services and solutions which may benefit consumers and/or the wider industry for a duration determined by the CBUAE, without having to obtain a full regulatory licence. The ADGM offers the ADGM RegLab. A regulatory sandbox forms part of the ADGM RegLab’s offering that provides a controlled environment for fintech par - ticipants to test and develop their innovative fintech solutions. In the RegLab, regulatory requirements are applied based on a participant’s business model and risks and on a case-by-case basis. In the DIFC, the DFSA operates a licensed sandbox known as the DFSA Innovation Testing Licence Pro - gramme. It allows participants to: • test new and innovative financial products, ser - vices and business models; and • benefit from adaptations to the regulatory frame - work on a case-by-case basis. 2.6 Jurisdiction of Regulators The key regulatory authorities responsible for admin - istering the UAE’s financial services frameworks and for regulating the UAE fintech market are the CBUAE, the CMA, the VARA, the FSRA and the DFSA. “Onshore UAE” The CBUAE The CBUAE regulates banks, finance companies, pay - ment service providers, stored value facilities provid - ers, exchange businesses and insurance companies. The CMA The CMA regulates markets, listed companies, secu - rities brokers, virtual asset service providers (VASPs) and the trading of commodities.

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