The United Arab Emirates has enacted Federal Decree No. 6 of 2025, a significant regulatory overhaul that replaces the 2018 banking law and imposes stricter controls on cryptocurrency activities. The new law criminalizes unlicensed financial activities, with penalties including imprisonment and fines between 50,000 and 500 million dirhams. This has raised concerns among developers who argue that the regulations could hinder the development of self-custody services, such as Bitcoin wallets, without a central bank license. The law's reach extends beyond the UAE, affecting companies whose services are accessible to UAE residents, potentially leading to service restrictions. This regulatory shift is part of a broader move towards tighter digital regulation in the country, sparking debate over its impact on innovation and compliance within the crypto sector.