UAE’s Landmark Law Transforms DeFi and Web3 Regulation

BriefBits Crypto: This week's most important developments in Crypto world

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Explore how new regulations and institutional moves are reshaping the crypto landscape with fresh market insights and strategic shifts.

In today's edition:

UAE’s new law brings DeFi and Web3 under strict regulatory control.
Traditional banks are stepping up to offer trusted crypto custody services.
Stablecoin market growth and shifting investor strategies highlight evolving crypto dynamics.

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Regulation

UAE Sets New Regulatory Ground for DeFi and Web3 with Landmark Financial Law

Briefly: The UAE’s Federal Decree Law No. 6 of 2025 expands the Central Bank’s regulatory authority to include DeFi protocols and Web3 companies offering financial services, mandating licensing and imposing hefty penalties for non-compliance, marking a pivotal shift in the region’s crypto regulation.

Key Information:

The law requires entities providing financial services via DeFi, middleware, or infrastructure to obtain licenses from the UAE Central Bank by September 2026.
It ends the ‘just code’ defense, meaning decentralized protocols can no longer claim exemption from financial regulations.
Non-compliant companies face penalties up to 1 billion dirhams (~$272 million) and potential criminal sanctions, while individual self-custody remains legal.
This regulation targets DeFi activities like stablecoin issuance, decentralized exchanges, bridges, liquidity routing, and tokenization of real-world assets.

Custody

21Shares Partners with Standard Chartered to Elevate Crypto Custody Amid TradFi’s Stronger Footprint

Briefly: 21Shares has appointed Standard Chartered as its digital asset custodian, marking a notable shift in the crypto custody landscape as traditional finance firms increasingly assert influence over institutional crypto services.

Key Information:

Standard Chartered will provide custody services for 21Shares’ exchange-traded crypto products from its Luxembourg-based platform.
This move signals a potential replacement or restructuring of 21Shares’ prior partnership with crypto-native Zodia Custody, co-founded by Standard Chartered.
The partnership highlights a growing trend of traditional banks offering institutional-grade crypto custody, leveraging their regulatory experience and trusted reputations.
Other major banks like US Bancorp, Citigroup, and Deutsche Bank are also expanding crypto custody and trading services, intensifying competition with crypto-native custodians.

🏃 Speedy Scoop

RegulationThe acting CFTC chair Caroline Pham has called for nominations to form a CEO Innovation Council aimed at guiding policy on digital assets and prediction markets, seeking industry leaders to help shape future crypto regulations.

MarketXRP is experiencing a sharp drop in Open Interest on Binance, hitting lows not seen since November 2024, signaling waning trader participation and bearish momentum amid risk-averse market conditions.

InvestmentInvestors are prioritizing portfolio diversification over pure upside potential, with 57% valuing crypto for its diversification benefits, while 45% view Bitcoin as a macro hedge against inflation and geopolitical risks, reflecting a maturing investment landscape.

CryptoNaver Financial is launching 'Silk Pocket,' a stablecoin wallet in collaboration with Hashed and Busan Digital Exchange, marking a key step in South Korea’s fintech expansion into crypto services amid ongoing regulatory debates.

MiningBitcoin mining faces squeezed profitability as record network hashrate meets falling Bitcoin prices near $81K, pushing payback periods beyond 1,200 days and forcing miners to explore high-performance computing contracts to offset losses.

TreasuryMetaplanet secured an additional $130 million in Bitcoin-backed credit to boost its treasury, leveraging debt alongside equity to scale Bitcoin acquisitions despite current unrealized losses, exemplifying innovative financial strategies in crypto treasury management.

📈 Numbers and Trends

Global stablecoin market surpassed $280 billion, raising financial stability concerns due to potential systemic risks and reserve asset liquidations impacting treasury bond markets.
Metaplanet secured $130 million in Bitcoin-backed credit, expanding its total borrowing to $230 million under a $500 million facility to boost BTC holdings amid price volatility.
Solana ETFs attracted $369 million in inflows during November, contrasting with $3.7 billion and $1.64 billion outflows from Bitcoin and Ethereum ETFs respectively, highlighting investor shift to yield-generating assets.
Bitcoin mining hit record 1.16 ZH/s hashrate in October while BTC price dropped to around $81,000, squeezing miner revenue below $35/PH/s and pushing payback periods beyond 1,200 days.
Institutional crypto investment shifted with 57% of investors prioritizing portfolio diversification in 2025, up from 53% last year, and 70% expressing interest in staking yields for crypto ETFs.

💬 Quote of the Day

The era of unregulated DeFi in the UAE is effectively over.

Irina Heaver

UAE’s new financial law pulls DeFi and Web3 into regulatory scope

1️⃣ Number of the Day

$280 billion - Global Stablecoin Market Capitalization Hits $280 Billion

The global stablecoin market has surpassed $280 billion in combined capitalization, underscoring rapid sector growth that has attracted heightened regulatory scrutiny due to systemic risks and financial stability concerns.

Global stablecoin market hits $280B as regulators warn of risks

UAE’s Landmark Law Transforms DeFi and Web3 Regulation

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