Fintech 2026

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

authorised firm itself or to another person. In addition, the DFSA prohibits an authorised firm from providing a credit facility to a retail client in connection with trad - ing in crypto tokens. In the ADGM, the FSRA raised “VA borrowing and lending services” (and other financing arrangements, including margin trading) as discussion points in Consultation Paper No 11 of 2024 and indicated that it was considering treating such activities as falling within the existing regulated activities. As of Febru - ary 2026, the FSRA has not published a standalone framework specifically for VA borrowing and lending. Pending formalisation of a regulatory framework for certain yield-generating activities, interested firms should engage with the FSRA on a case-by-case basis in respect of this. 10.8 Cryptocurrency Derivatives The offering of cryptocurrency derivatives is based on a review of the VARA public register which sets out various entities licensed to carry out virtual asset derivatives trading activities. The VARA regulates cryptocurrency derivatives. VARA has updated its activity-based rulebooks (Version 2.0 of May 2025, effective June 2025), including strengthened con - trols relevant to leveraged activity (including detailed margin trading rules), and derivatives-related activity continues to be addressed through the scope of the relevant VARA licence and applicable rulebooks and conditions. In the DIFC, the DFSA’s regulatory framework cap - tures crypto token derivatives. The rules governing crypto token derivatives are set out in the DFSA Gen - eral Rulebook Module. The DFSA General Rulebook Module sets out a number of requirements including requiring authorised firms to carry out an appropriate - ness assessment of a retail client and form a reason - able view that the person has: • adequate skills and expertise to understand the risks involved in trading crypto token derivatives; and • the ability to absorb potentially significant losses resulting from trading in crypto token derivatives.

Other restrictions relating to crypto token derivatives are also prescribed. In the ADGM, in line with the FSRA’s treatment of virtual assets as commodities, derivatives of virtual assets are regulated as commodity derivatives and, as such, are classified as a type of “specified investment” under the FSMR. Consequently, any market opera - tors or market intermediaries in the ADGM dealing or managing investments in derivatives of virtual assets are subject to the appropriate regulations and rules applicable under the FSMR. 10.9 Decentralised Finance (DeFi) There are no regulations that specifically govern decentralised finance (DeFi) in the UAE. 10.10 Regulation of Funds Funds are regulated in both “onshore UAE” and “offshore UAE”. A fund will fall within the scope of a UAE financial services regulatory authority’s licensing framework by virtue of operating as such. Specific rules apply for particular types of investments. The ADGM has a comprehensive virtual asset frame - work, which governs financial activities including col - lective investment funds investing in regulated digital assets. The virtual asset framework imposes certain additional regulatory obligations upon fund managers managing funds investing in regulated digital assets when it comes to periodic statements, capital require - ments and technology governance and controls. The DIFC’s virtual asset framework also imposes cer - tain additional regulatory obligations upon fund man - agers managing funds investing in regulated tokens. 10.11 Virtual Currencies As a point of difference, virtual assets used for pay - ment purposes, including stored value facilities, except those approved by the CBUAE for listing and trading purposes, are excluded from the VA Decision and fall exclusively under the jurisdiction of the CBUAE. By definition, this applies to cryptocurrencies. 10.12 NFTs NFTs are governed by a number of the UAE’s regu - latory frameworks, including under the VA Decision.

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