Legal strategy matters more than ever for your crypto startup in the UAE
Founders in the UAE must prioritize regulatory structuring as a fundamental part of their go-to-market strategy to succeed. While the UAE offers a supportive ecosystem, many view licensing as an afterthought, which can lead to regulatory challenges. The UAE operates under a federal system with two legal frameworks: the mainland onshore regime and the financial free zones like ADGM and DIFC, each governed by separate authorities. Five main regulators oversee crypto activities: the Central Bank of the UAE, the Securities and Commodities Authority, the Dubai Virtual Assets Regulatory Authority, the Financial Services Regulatory Authority, and the Dubai Financial Services Authority. Selecting the appropriate jurisdiction and understanding each regulator's requirements is crucial for crypto startups. Strategies differ based on business models, such as launching exchanges or issuing stablecoins. Successful founders engage with regulators early, aligning their business models with the right authority to avoid unnecessary setbacks.
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