The United Arab Emirates (UAE) continue to reaffirm their ambition to become a global hub for digital assets. In 2025, several major legal developments were introduced to structure and secure the crypto-asset ecosystem, creating attractive opportunities for foreign residents, including French nationals.
A Rapidly Maturing Regulatory Framework in the United Arab Emirates
Two major regulatory developments shape the new legal architecture governing crypto-assets in the UAE:
- The entry into force of Federal Decree Law No. 6 of 2025, which extends the regulation of crypto-related services—including exchange platforms, payment services, DeFi and stablecoins—under the authority of the UAE Central Bank. This framework introduces licensing requirements and provides for significant sanctions against unauthorised operators.
- The alignment of the UAE with the OECD’s Crypto-Asset Reporting Framework (CARF), which will require, from 2027 onwards, the reporting of tax-related information on crypto-asset transactions and wallets as part of enhanced international cooperation.
In parallel, specialised authorities such as the Virtual Assets Regulatory Authority (VARA) in Dubai and the Financial Services Regulatory Authority (FSRA) in Abu Dhabi have implemented clear and structured licensing regimes for digital asset service providers.
Comparison with the French Regulatory Regime
In recent years, the French and broader European legal frameworks have significantly strengthened regulatory requirements. Holders of crypto-assets are subject to extensive tax reporting obligations, platforms are heavily regulated, and oversight of self-hosted wallets has intensified.
While these measures pursue legitimate objectives related to the prevention of tax evasion and money laundering, they substantially increase the administrative and tax compliance burden associated with crypto-related income for individuals.
A More Favourable Tax Environment in the United Arab Emirates
By contrast, the UAE does not levy personal income tax or capital gains tax on crypto-assets held or traded by residents.
Furthermore, many crypto-asset transactions remain exempt from value-added tax (VAT), representing a significant tax advantage for both individual investors and entrepreneurs operating in the digital asset sector.
Advantages for French Residents in the United Arab Emirates
For French expatriates residing in the UAE, this regulatory environment offers several notable advantages:
- Legal certainty and operational security: obtaining local licences for crypto platforms and services enhances regulatory credibility, whether in relation to trading activities, asset custody or innovative financial services.
- Attractive personal taxation: the absence of direct taxation on crypto gains provides optimisation opportunities for individuals structuring their investments or professional activities from the UAE.
- A well-structured institutional ecosystem: the ability for banks and financial institutions to offer crypto-related services (brokerage, custody, financing) creates a more integrated ecosystem than that currently available in France.
Striking a Balance Between Innovation and Regulation
The evolution of the UAE’s legal framework for crypto-assets reflects a clear intention to reconcile technological innovation with alignment to international standards, particularly in relation to tax transparency and anti-money laundering requirements.
Although the Emirati regulatory regime appears more permissive and fiscally advantageous than the French framework for individuals, it nevertheless requires a careful reconsideration of how crypto-related activities and investments are legally structured.
A tailored legal analysis remains essential to navigate this rapidly evolving environment, particularly with regard to company formation, licensing requirements and the costs associated with regulatory compliance.