UAE Law Broadens Central Bank Oversight of DeFi, Bans 'Just Code' Defense
Federal Decree Law No. 6 significantly widens the UAE central bank’s remit to cover decentralized finance and Web3 activities, explicitly stripping away the “just code” defense that some projects have used to argue they aren’t liable for protocol behavior. The law also establishes fines and penalties that can reach up to $272 million, signaling a higher-stakes enforcement environment for on-chain services and intermediaries operating in or targeting UAE markets.
For developers, validators, and project teams the change turns technical design choices into legal exposure; legal accountability can now attach to code-driven outcomes. For users and businesses, the decree aims to bring clearer consumer protections and regulatory certainty but may push some projects to alter governance, add compliance layers, or relocate. Market participants should reassess legal risk and compliance strategies as enforcement details and implementing rules are rolled out.