What are the penalties for dealing in anonymous virtual assets in the UAE?
Federal Decree-Law No. 10 of 2025 specifically targets anonymity-enhancing virtual assets. Any person who promotes, offers for sale, provides services in, or deals in virtual assets characterised by total anonymity, or that prevent or obstruct the ability of authorities to trace a transaction or its parties, or who uses unlicensed accounts or technologies allowing such concealment, is liable to imprisonment for not less than three months and a fine of not less than AED 50,000, or either penalty.
On conviction the court must also order confiscation of the relevant property. The provision reflects the UAE’s concern that privacy coins and untraceable arrangements can defeat AML controls. Virtual asset service providers and their customers should therefore avoid anonymity-focused products and ensure that every asset handled can be traced and screened.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 30(2) — penalises dealing in fully anonymous or untraceable virtual assets
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.