The recent rumors of a Bitcoin ban in the United Arab Emirates have been debunked by authorities, who clarified that while new regulations have been put into place, residents can still freely engage in buying, holding, and trading Bitcoin.
Earlier announcements had suggested that the UAE imposed a ban on Bitcoin, with Mikko Ohtamaa, co-founder of Trading Protocol, claiming that the new Central Bank of the UAE Law, effective from September 16, 2025, made it a criminal offense to offer unlicensed cryptocurrency services. His comments sparked concerns among the crypto community in Dubai.
However, a closer examination reveals that the law focuses primarily on service providers rather than individuals holding Bitcoin. It mandates that crypto businesses obtain a license to operate, which includes the provision of tools such as self-custodial wallets and market analysis sites. The regulation does not criminalize the act of holding Bitcoin itself, as pointed out by various users on social media.
As it stands, UAE residents retain the ability to own and trade Bitcoin without any restrictions. This clarification comes at a time when the crypto market is experiencing significant volatility, with Bitcoin trading at approximately $95,868.46, reflecting a 6.92% decrease over the past 24 hours. The broader market has reported over $658 million in liquidations, contributing to the price fluctuations.
Investors are also keeping a close eye on Bitcoin Exchange-Traded Funds (ETFs) like BlackRock”s iShares Bitcoin Trust ETF, which recently experienced its second-largest outflow in history, amounting to around $870 million in a single day, further impacting Bitcoin”s price.
In summary, while regulatory oversight in the UAE is tightening around crypto services, individuals can still participate in the Bitcoin market without fear of legal repercussions. This distinction is crucial for both local investors and international observers monitoring the evolving regulatory landscape in the region.
