A Look Back at Crypto Laws in the UAE: 2024 Review and Analysis
As we bid farewell to 2024, it’s clear that this year will be remembered as one of the most significant periods in the history of global crypto regulation. Policymakers worldwide have taken a comprehensive approach to overseeing the growth and development of cryptocurrencies, bringing clarity and structure to an industry once plagued by uncertainty.
A New Era of Regulation
The year began with a bang, as President-elect Donald Trump announced plans to establish a strategic Bitcoin (BTC) reserve in the United States. This bold move sent shockwaves through the crypto community, sparking debate and enthusiasm among enthusiasts and skeptics alike. The news was met with excitement from other nations, with rumors suggesting that six international governments are considering emulating the US’ lead.
One such nation is Japan, which has long been a pioneer in crypto regulation. In 2024, Japan continued to set the bar high for regulatory excellence, introducing new guidelines and frameworks designed to promote transparency and stability in the industry.
The EU’s MiCA Directive: A Game-Changer
Across the Atlantic, the European Union’s Markets in Crypto-Assets (MiCA) directive has had a profound impact on the global crypto landscape. The regulation, which came into effect in 2024, compels crypto exchanges to delist non-compliant stablecoins ahead of regulatory deadlines.
This move has had far-reaching consequences, pushing USDt (USDT), one of the world’s most widely traded stablecoins, out of some of its largest markets. Tether, the issuer of USDT, has shown remarkable resilience in the face of this challenge, continuing to grow its market share despite the regulatory shake-up.
The UAE: A Regulatory Haven
In the Middle East, the United Arab Emirates (UAE) has emerged as a leader in crypto regulation. With five regulators now overseeing virtual asset service providers (VASPs), the nation introduced a series of laws, licensing frameworks, and tax exemptions that have made it an attractive destination for businesses seeking to operate in the region.
One highlight of 2024 was the introduction of the Payment Token Services Regulation via Circular No. 2/2024 by the Central Bank of the UAE (CBUAE). This regulation governs the issuance of stablecoins, requiring issuers to fully back their tokens with reserves and maintain strong governance and transparency.
Abu Dhabi Global Market: A Regulatory Success Story
In Abu Dhabi, the global market has made significant strides in regulating the crypto sector. The Abu Dhabi Global Market (ADGM) introduced a regulatory framework specifically for stablecoins or ‘fiat-referenced tokens.’ Under these rules, issuers must ensure that their tokens are fully backed by reserves and maintain rigorous transparency.
Tax Developments: A Welcome Relief
In a move that has been hailed as a welcome relief to crypto traders in the UAE, the Federal Tax Authority announced that all cryptocurrency transactions would be exempt from value-added tax (VAT) starting from January 2024. This decision has made it easier for businesses to operate in the region and has attracted new market players.
Regulatory Clarity: A Gravitational Pull
The regulatory clarity provided by the UAE has had a gravitational pull effect on the industry, attracting significant market players to the region. Heavyweights like Binance, Crypto.com, OKX, and Bybit received VASP licenses in 2024, expanding their services from exchange and lending to derivatives trading.
Looking Ahead: A Bright Future
As we bid farewell to 2024, it’s clear that the future of crypto regulation is bright. In the US, all eyes are on the incoming Bitcoin strategic reserve, while Europe’s MiCA framework may tighten further, pushing more companies out of the EU.
Within the UAE, the trend towards more granular rules for token issuance, stablecoins, and decentralized finance platforms will continue to shape the industry. Despite tighter regulations, the region is expected to attract even more global players in 2025.
Buckle Up: The Future of Crypto Regulation
As we enter a new year, it’s essential for businesses operating in the crypto sector to be aware of the regulatory landscape. In 2025, expect stronger Anti-Money Laundering (AML) rules, more defined stablecoin governance, and deeper cross-border regulatory cooperation.
About the Author
Irina Heaver is a leading Bitcoin and crypto lawyer based in the UAE and Switzerland. She holds a Juris Doctorate from Monash University and a Master of Laws degree in International Taxation and Energy Laws from Melbourne University. With advanced specializations in AI and blockchain technologies, Irina brings unparalleled expertise to her work.
Disclaimer
This article is for general information purposes only and should not be taken as legal or investment advice. The views expressed here are the author’s alone and do not necessarily reflect the views of Cointelegraph.