How are virtual assets and VASPs regulated under the UAE’s new AML law?
Federal Decree-Law No. 10 of 2025 formally brings virtual assets and virtual asset service providers (VASPs) within the AML/CFT framework. VASPs are treated as regulated entities and are subject to the same core obligations as financial institutions and DNFBPs, including customer due diligence, record keeping, suspicious transaction reporting and targeted financial sanctions screening.
The law also recognises that money laundering, terrorist financing and proliferation financing can be carried out through digital systems, cryptographic technologies and virtual asset platforms. It specifically penalises dealing in virtual assets that offer total anonymity or that obstruct the ability of authorities to trace a transaction or its parties. No person may provide virtual asset services without the required licence or registration from the competent authority. VASPs should therefore treat AML compliance as a licensing condition, not an optional add-on.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 19 and Article 20 — impose preventive duties on VASPs and prohibit unlicensed activity
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.