Do you need a licence to operate as a DNFBP or virtual asset service provider in the UAE?
Yes. The UAE AML law prohibits any natural or legal person from carrying on financial activities, the business of a designated non-financial business or profession, or virtual asset service provider activities, without first obtaining a licence, registration or enrolment from the competent authority or the relevant supervisory authority.
This requirement is a gatekeeping control. It ensures that everyone conducting a regulated activity is known to a supervisor, can be subject to AML obligations such as customer due diligence and reporting, and can be inspected and sanctioned. Operating outside this system removes those safeguards and is treated seriously.
Breaching the licensing requirement is a criminal offence. A person who violates it is liable to imprisonment and a fine of not less than AED 200,000 and not more than AED 10 million, or either of these penalties. Businesses in scope, including many dealers, agents, professional service providers and virtual asset firms, should confirm they hold the correct authorisation before commencing activity and keep it current, since unlicensed operation exposes both the entity and responsible individuals to prosecution.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 20 — requires licensing or registration to conduct regulated activity, with penalties set in Article 32.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.