When it comes to digital assets in Dubai, there are two jurisdictions to consider: Dubai and DIFC. In Dubai, the Law on virtual assets was enacted in 2022 (Dubai Law No. 4/2022). It applies to Mainland and all Dubai Free Zones except DIFC. The local business community has been expecting the similar regulation from the DIFC - in February 2024, these expectations were met.
The Dubai International Financial Center (DIFC) has passed a new law on digital assets (DIFC Law No. 2/2024). This law does not apply to the entire Emirate of Dubai, but exclusively to the DIFC free zone. For a long period of time, digital assets have been enjoying a reputation of risky and unregulated instruments. However, the DIFC free zone has taken a step towards encouraging transactions based on digital assets by issuing the new Digital Assets Law. Upon the introduction of the new Law, the DIFC will also become one of the platforms for resolving disputes related to this type of assets.
The new Law includes general provisions regarding the ownership of digital assets, as well as the rules for the transfer of ownership and enforcement of rights related to digital asse...