In the UAE, successful crypto startups prioritize regulatory structuring as a core element of their strategy. Many founders mistakenly treat licensing as an afterthought, which can lead to missed opportunities and regulatory challenges. The UAE's legal framework comprises two regimes: the onshore mainland system and the financial free zones of ADGM and DIFC, each with distinct regulatory authorities. There are five main regulators: the Central Bank of the UAE, the Securities and Commodities Authority, the Dubai Virtual Assets Regulatory Authority, the Financial Services Regulatory Authority in ADGM, and the Dubai Financial Services Authority in DIFC. Choosing the right regulator is crucial and hinges on the business model, whether it's launching a crypto exchange, issuing a stablecoin, or starting a payment app. Founders are advised to begin with focused offerings to avoid regulatory burnout, ensuring compliance and effective engagement with regulators throughout the process. The article emphasizes that careful planning and proactive communication with regulatory bodies can lead to a supportive ecosystem for founders in the UAE.

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