UAE, Jordan, and Morocco Advance Cryptocurrency Regulation in 2026: From Bans to Frameworks
By International Finance Correspondent
Dubai, Amman, and Rabat – Arab nations are reshaping their stance on digital assets, moving from outright bans and warnings to structured regulatory environments. Recent developments in the United Arab Emirates (UAE), Jordan, and Morocco signal a regional pivot toward embracing cryptocurrencies under robust oversight, aligning with global standards like the EU’s MiCA and FATF guidelines.[2][1]
UAE Solidifies Position as Global Crypto Hub
The UAE continues to lead in virtual asset regulation, with key updates in 2026 enhancing its appeal to Web3 businesses. Dubai’s Virtual Assets Regulatory Authority (VARA) has fully implemented the FATF Travel Rule as of February 2026, requiring Virtual Asset Service Providers (VASPs) to share originator and beneficiary details for all transfers.[3]
Within the Dubai International Financial Centre (DIFC), the Dubai Financial Services Authority (DFSA) shifted to a “firm-led” suitability assessment model effective January 12, 2026. Previously regulator-driven via a predefined token list, firms now bear primary responsibility for evaluating crypto token suitability, demanding stronger internal governance, custody, disclosure, and compliance.[2][3]
The Central Bank of the UAE (CBUAE) introduced a 2026 Stablecoin Framework, positioning itself as the sole issuer regulator for “Payment Tokens.” Only dirham-backed tokens like AE Coin are permitted for local retail payments, banning algorithmic and privacy-focused variants. New circulars refined “Qualified Investor” criteria, expanding access to high-risk products while maintaining protections. A unified VASP register by the Securities and Commodities Authority (SCA) and VARA simplifies cross-emirate operations, with capital requirements ranging from AED 100,000 to AED 2,000,000.[3]
Enforcement has intensified, with SCA targeting unlicensed activities. Mandatory roles like Money Laundering Reporting Officer (MLRO) and Compliance Officer underscore 2026’s AML/CFT focus.[3]
Jordan Positions for Virtual Asset Leadership
Jordan is emerging as a compliant regional hub through Law No. 14, the Virtual Assets Law, with implementing regulations anticipated in 2026. This follows years of Central Bank warnings prohibiting banks and financial firms from dealing in bitcoins or digital currencies, though small businesses continued acceptance.[4][7]
The law aims to integrate Jordan into the global digital economy, fostering innovation while combating risks like money laundering. It positions the kingdom competitively by defining virtual assets and outlining licensing for issuance, trading, custody, and advisory services.[7][2]
Morocco Ends Eight-Year Crypto Ban
After prohibiting cryptocurrency since 2017—citing exchange regulation violations and risks of illicit use—Morocco published Draft Bill No. 42.25 in November 2025.[2][4] Developed by the Ministry of Finance, Bank Al-Maghrib, and AMMC, the bill establishes a MiCA-inspired framework for digital assets, including DeFi.[1][2]
With 6 million Moroccans (16% of the population) holding crypto despite the ban, the legislation formalizes the market. Crypto-assets are not legal tender and exclude CBDCs, unique NFTs, and non-client-fund mining. A tripartite supervision model assigns AMMC oversight of CASP licensing, trading platforms, disclosures, and sanctions; Bank Al-Maghrib handles monetary stability; and the Ministry manages policy.[1]
The draft protects investors, ensures market integrity, and promotes fintech innovation without yet being enacted.[2][5]
Regional Implications and Global Alignment
These shifts reflect a broader trend: from prohibition to regulation amid growing adoption. UAE’s mature ecosystem contrasts Morocco’s reversal and Jordan’s buildup, all prioritizing AML, investor protection, and stability per FATF, BIS, and IMF standards.[1][3]
Experts note opportunities for licensed operators, though strict compliance is key. As 2026 unfolds, these frameworks could attract investment, boost formal sectors, and position the region in global digital finance.[3][7]
Challenges Ahead
While promising, hurdles remain. Morocco’s bill awaits passage; Jordan’s regulations are pending; UAE demands high compliance costs. Historical bans linger in public perception, and global volatility persists.[1][2][4]
“This legislative text… establishes a comprehensive regulatory framework directly inspired by the European Union’s MiCA Regulation.”[1]
Stakeholders urge swift implementation to harness crypto’s potential responsibly.