Ras Al Khaimah's Innovation City free zone offers a crypto-friendly environment with streamlined licensing, banking setup, and support for Web 3.0 and DAO activities under the RAK DAO Regulations 2023.
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Region | middle east |
| Currency | AED |
| Capital Gains (Personal) | 0% - no personal income tax in RAK/UAE |
| Capital Gains (Corporate) | 0% on Qualifying Income for Qualifying Free Zone Persons (QFZP); non-qualifying income taxed at 9% UAE standard corporate tax rate introduced June 2023 |
| VAT on Crypto | No |
| Staking Tax | No personal tax |
| Airdrop Tax | No personal tax on airdrops |
RAK DAO entities benefit from 0% corporate tax within the free zone under the UAE's qualifying free zone regime. No personal income tax applies.
| Required | Yes |
| Regulator | RAK Innovation City (RAK INC) — formerly RAK Digital Assets Oasis (RAK DAO). Rebranded September 18, 2025. The authority itself acts as regulator within the free zone. |
| Framework | RAK Digital Assets Oasis Companies Regulations 2023 (under Law No. 2 of 2023); supplemented by the Decentralized Association Regime (DARe) launched October 2024 |
| Ease | easy |
| Cost (USD) | $5,000 - $25,000 |
Fastest path to licensing with simple, all-inclusive packages and simultaneous banking setup in Innovation City free zone.
No significant enforcement actions reported; jurisdiction actively encourages crypto business
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
Federal Decree-Law No. 6 of 2025 (September 2025) brought DeFi protocols, DEXes, stablecoins, lending platforms, cross-chain bridges, and Web3 infrastructure under Central Bank of UAE (CBUAE) oversight. DeFi protocols can no longer claim 'just code' exemption. Regulated entities have a 1-year transition period (until September 2026) to obtain proper licensing, partner with licensed entities, or cease UAE-targeted operations. Self-custody and individual wallet use remain unrestricted. RAK DAO / Innovation City free zone supports DeFi business setup but businesses must also comply with federal DeFi/VASP requirements. DeFi is not banned, but it is now regulated at the federal level.
Status: federal_rules_apply
UAE introduced the Payment Token Services Regulation (PTSR) on 7 June 2024, effective 6 July 2024, with a one-year transition period that ended June 2025. The PTSR (issued by CBUAE) fully governs stablecoin issuance and services across mainland UAE — excluding ADGM and DIFC financial free zones. RAK DAO / Innovation City is NOT a financial free zone and falls under CBUAE PTSR jurisdiction. AE Coin (AED-backed) was licensed under PTSR in December 2024. Algorithmic stablecoins and privacy tokens are prohibited. 100% liquid reserve requirement. RAK DAO itself issues no stablecoin-specific rules; CBUAE PTSR is the applicable framework.
Status: no_rules
No specific NFT regulation; generally permitted
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 5% |
| Infrastructure | good |
Mining is legal with competitive electricity costs and good infrastructure in Ras Al Khaimah. The arid climate affects cooling costs moderately.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 65/100 |
| Banking Access | open |
Risk Factors
Ras Al Khaimah benefits from stable governance within the UAE, open banking for crypto businesses, and a generally favorable business environment despite regional tensions.
Ras Al Khaimah's Innovation City free zone offers a crypto-friendly environment with streamlined licensing, banking setup, and support for Web 3.0 and DAO activities under the RAK DAO Regulations 2023.
RAK Digital Assets Oasis is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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