Arab Nations Advance Crypto Regulation: UAE Consolidates Oversight, Jordan Eyes Hub Status, Morocco Ends Eight-Year Ban
Dubai, UAE – March 12, 2026
Three Arab countries—the United Arab Emirates, Jordan, and Morocco—are making significant strides in regulating cryptocurrencies and virtual assets, marking a regional shift toward formal oversight and innovation in digital finance.
UAE Strengthens Federal and Free-Zone Frameworks
The United Arab Emirates has positioned itself as a global leader in crypto regulation with recent federal decrees and updates in key financial zones. In September 2025, Federal Decree-Law No. (6) of 2025 expanded the Central Bank of the UAE’s (CBUAE) authority to oversee payment services using virtual assets, consolidating federal-level supervision of crypto-based activities.
Within the Dubai International Financial Centre (DIFC), the Dubai Financial Services Authority (DFSA) amended its crypto token regime effective January 12, 2026. Regulated firms now bear primary responsibility for assessing crypto token suitability, moving away from predefined lists. The changes emphasize enhanced governance, custody, disclosure, and compliance for crypto activities.
At the federal level, the CBUAE’s Payment Token Services Regulation (Circular No. 2/2024) mandates dirham-backed stablecoins issued by approved entities, with a 12-month compliance grace period ending in 2025. The Securities and Commodities Authority (SCA) enforces the Crypto Assets Activities Regulation (CAAR), requiring licenses and strict AML/KYC standards for trading and issuing crypto assets.
Cryptocurrencies are legal for trading in Dubai and Abu Dhabi but not recognized as legal tender. Authorities like SCA, DFSA, and the Virtual Assets Regulatory Authority (VARA) ensure investor protection amid growing adoption.
“The UAE’s approach offers relative certainty compared to more restrictive markets, combining regulatory discipline with innovation.”
Jordan Positions for Regional Virtual Asset Leadership
Jordan has embraced virtual assets through Law No. 14, with implementing regulations anticipated in 2026. This framework aims to place the kingdom as a compliant, competitive hub in the global digital economy, regulating activities from trading to decentralized finance.
The law reflects a broader regional trend toward structured oversight, enabling licensed operations while addressing risks like money laundering. Experts note that Jordan’s proactive stance could attract international players seeking stable regulatory environments.
Morocco Reverses Prohibition with Comprehensive Bill
After an eight-year ban, Morocco published Draft Bill No. 42.25 in November 2025, establishing a robust framework for digital assets inspired by the EU’s MiCA Regulation and aligned with FATF, BIS, and IMF standards.
The bill, developed by the Ministry of Finance, Bank Al-Maghrib, and AMMC, responds to widespread adoption—about 6 million Moroccans, or 16% of the population, hold cryptocurrencies despite past warnings.
Key features include a three-regulator model: AMMC oversees licensing for Crypto-Asset Service Providers (CASPs), trading platforms, token issuances, and sanctions for violations. Bank Al-Maghrib handles stability and payment aspects, while the Office des Changes monitors foreign exchange. Crypto-assets are treated as financial instruments, not legal tender, excluding CBDCs, certain NFTs, and non-custodial mining.
Regional Implications and Global Context
These developments reflect a move from prohibition to regulation across the Arab world, driven by market realities and international standards. The UAE’s progressive stance, Jordan’s hub ambitions, and Morocco’s U-turn could foster cross-border innovation while mitigating risks.
Globally, 2026 sees enforcement-focused shifts, with the UAE approving dirham-backed stablecoins and emphasizing AML compliance. Businesses must navigate licensing, taxes, and governance to thrive.
| Country | Major Development | Key Regulator(s) | Status of Crypto |
|---|---|---|---|
| UAE | Federal Decree-Law No. 6/2025; DFSA amendments | CBUAE, DFSA, SCA, VARA | Legal for trading, not tender |
| Jordan | Law No. 14; 2026 regulations | Central Bank & financial authorities | Regulated virtual assets |
| Morocco | Draft Bill 42.25 (Nov 2025) | AMMC, Bank Al-Maghrib, Office des Changes | Financial assets, not tender |
Challenges and Opportunities Ahead
While these frameworks promise stability, challenges include enforcement, cross-border coordination, and balancing innovation with protection. Industry observers predict increased licensing applications and stablecoin adoption, potentially boosting regional GDP.
For businesses, compliance is key: UAE firms face corporate taxes on crypto income with VAT exemptions on transfers, while Morocco’s tripartite model demands rigorous CASP authorization.
“Morocco’s bill transforms an informal market into a regulated sector, opening doors for licensed operators.”
As 2026 unfolds, these nations’ aligned yet distinct approaches could redefine the Middle East and North Africa’s role in global digital assets, attracting investment amid worldwide regulatory tightening.