Ras Al Khaimah Innovation City offers a crypto-friendly environment with on-chain licensing and DAO-friendly activities, supporting Web 3.0 innovation within a technology-focused free zone.
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Region | middle east |
| Currency | AED |
| Capital Gains (Personal) | 0% |
| Capital Gains (Corporate) | 0% on Qualifying Income for Qualifying Free Zone Persons (QFZP); non-qualifying income taxed at 9% UAE standard corporate tax rate (effective June 2023). Free zone entities must meet FTA substance and Qualifying Income conditions to maintain 0%. |
| VAT on Crypto | No |
| Staking Tax | No specific guidance |
| Airdrop Tax | No specific guidance |
No crypto-specific tax guidance available.
| Required | Yes |
| Regulator | Innovation City (RAK INC) — formerly RAK Digital Assets Oasis (RAK DAO). Rebranded 18 September 2025. Parent corporate registry is RAK ICC (RAK International Corporate Centre). The Innovation City authority acts as the in-zone licensing body. |
| Framework | RAK Digital Assets Oasis Companies Regulations 2023 (under Law No. 2 of 2023); supplemented by the Decentralized Association Regime (DARe) launched October 2024. UAE Federal Decree-Law No. 6 of 2025 also applies to DeFi/VASP activities. |
| Ease | easy |
Fastest path to licensing with simple, all-inclusive packages and simultaneous banking setup in a supportive tech ecosystem.
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
UAE Federal Decree-Law No. 6 of 2025 (enacted September 2025) brought DeFi protocols, decentralized exchanges, stablecoins, cross-chain bridges, lending platforms, and all Web3 infrastructure under Central Bank of UAE (CBUAE) direct oversight. The 'just code' defence no longer applies. Businesses have a 1-year transition period (until approximately September 2026) to obtain CBUAE licensing, partner with a licensed entity, or cease UAE-targeted operations. Self-custody and individual wallet use remain unrestricted. Innovation City / RAK ICC free zone supports DeFi business setup but businesses must also comply with federal DeFi/VASP requirements. DeFi is not banned — it is now regulated.
Status: federal_rules_apply
UAE introduced the Payment Token Services Regulation (PTSR) issued by CBUAE on 7 June 2024, effective 6 July 2024, with a 1-year transition period ending June 2025. PTSR is now in full effect as of 2026-06-01 and applies to all stablecoin issuance, conversion and custody/transfer services across mainland UAE. RAK DAO / Innovation City is NOT a financial free zone and falls under CBUAE PTSR jurisdiction (unlike ADGM and DIFC which have their own frameworks). AE Coin (AED-backed stablecoin) was the first entity licensed under PTSR in December 2024. Algorithmic stablecoins and privacy tokens are prohibited under PTSR. Foreign-currency stablecoins require CBUAE registration. Dirham-backed stablecoins require full CBUAE licence.
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 the free zone environment.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 65/100 |
| Banking Access | open |
Risk Factors
Ras Al Khaimah benefits from the UAE's stable political environment, open banking for crypto, and low corruption, though regional tensions persist.
Ras Al Khaimah Innovation City offers a crypto-friendly environment with on-chain licensing and DAO-friendly activities, supporting Web 3.0 innovation within a technology-focused free zone.
RAK ICC (Ras Al Khaimah) 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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