Comprehensive guide to cryptocurrency regulations across the Middle East & North Africa. Legal status, licensing requirements, and regulatory frameworks for UAE, Saudi Arabia, Bahrain, Qatar, and more.
Examining MENA Crypto Regulations: Country-by-Country Legal Status In 2026
Taking a closer look at the transformation across MENA is fascinating because it shows how it is possible to move from a highly skeptical position to one of innovation and creativity in a relatively short period of time. It is also a region of stark contrasts. Dubai has a comprehensive crypto framework already in place, while neighboring countries choose to exercise complete bans in 2026.
To make sure that you know your rights and legal positions, we’re going to take a closer look at the entire MENA region in 2026. Let’s dive into the details.
H2: The UAE: A Leader In Crypto Innovation
The Central Bank of the UAE brought in new legislation as recently as September 2025, requiring all crypto and blockchain organizations to become licensed or face fines of up to AED 1 billion ($272 million). There is currently a grace period that ends in September 2026 for existing users.
Dubai uses VARA (Virtual Assets Regulatory Authority) to deliver a comprehensive framework for stablecoins and all forms of tokenized real-world assets. Fines have already been issued and enforced, and a series of strict licensing requirements for Virtual Asset Service Providers (VASPs) are currently in place. They also support a wide array of crypto custody, trading, and payment services.
By contrast, Abu Dhabi uses the ADGM (Abu Dhabi Global Market) and the FSRA (Financial Services Regulatory Authority) to regulate crypto. Their framework is focused more on institutions than on individual users, with particular focus on fiat-referenced tokens. It’s key to note that the use of privacy tokens and algorithmic stablecoins is strictly prohibited in 2026.
H2: Saudi Arabia: A Cautious New Entrant With Some Ambiguity
The key point here is that, while cryptocurrency trading is not strictly illegal, it currently operates in something of a gray area due to a lack of explicit rules and regulations in 2026. Granted, the Communications & Security Technology Commission (CST) is tasked with creating regulations for platforms and entities based on blockchain innovation, but there is work to be done for the legal side to catch up and then keep pace more consistently. As a result, there is currently no clear VASP licensing pathway that entrants to the market can be directed towards.
However, it’s interesting to note that the Government is currently seriously exploring a range of Central Bank Digital Currency (CBDC) options, although Sharia compliance concerns still remain in certain quarters. Right now, banks are unable to offer crypto transactions, and there are no domestically licensed exchanges, forcing local users to use international trading platforms.
H2: Bahrain: A Progressive GCC Approach
The Central Bank of Bahrain (CBB) and the Fintech & Innovation Unit have already delivered a comprehensive framework for crypto operations and usage. Licensed exchanges have permission to operate, travel rules for all transactions are in place, and digital banking and DeFi are well supported. VASPs are required to get CBB approval and must undergo strict AML/CFT compliance. The heavy focus on fintech investment and the robust nature of the framework that is already in place mean that Bahrain is a close second to the UAE in terms of balancing cultural and religious sensitivities with a progressive approach to crypto integration.
H2: Qatar: A Rapidly Emerging Framework
Historically, there has been a total prohibition of cryptocurrencies, but that shifted dramatically in 2025 when the Qatar Financial Centre (QFC) created the Digital Asset Regulatory (DAR) framework. The focus of the framework is asset tokenization, the legal recognition of smart contracts, and the creation of a unique regulatory zone for all legal digital assets. Pilots are underway, and investment in fintech is increasing, with many commentators expecting Qatar to be the next country in the MENA region to progress beyond the crypto gray area phase.
H2: Kuwait: A Restrictive Stance & Concerns About Infrastructure
Kuwait has chosen to adopt an extremely restrictive approach to cryptocurrency, as is its right to do so. Strict policing of unauthorized mining saw electricity usage drop by more than 50% in some local areas and was prompted by concerns over how the grid was being placed under undue stress. There is currently no VASP licensing framework, and crypto trading is seen as a high-risk, low-reward pursuit that is actively discouraged at many levels of society.
H2: Oman: A Conservative Outlook With CBDC Interest
No specific cryptocurrency legislation exists in Oman in 2026, but the use of crypto is generally prohibited, depending on how the existing (significantly broader) regulations are interpreted. This conservative stance stems from traditional Islamic financial principles, and the minimal knowledge and awareness of crypto amongst the general population. While CBDC pilots are currently in progress, there are no signs of significant change over the course of the next 24 months.
H2: Egypt: A Highly Complex Regulatory Environment
Cryptocurrency trading is illegal according to Islamic financial advisory rulings, and the Grand Mufti has issued a binding fatwa that declares crypto haram, making it forbidden for all. However, while the Central Bank of Egypt prohibits crypto transactions, there has been investment in blockchain technology development, provided it is for use in the government/banking sectors. There is an active underground market that trades in the margins with only limited enforcement, although there are occasional high-profile convictions designed to act as a broader deterrent.
H2: Morocco, Tunisia, Lebanon: Important Cases In North Africa
Morocco’s foreign exchange regulations ban crypto trading in all but name, with the central bank also constantly warning the population of the perceived dangers of crypto usage. There are no licensed exchanges and no indication of a more progressive approach in the near future.
Tunisia is a little more open and has a progressive yet small domestic user community. The lack of formal regulation, combined with no urgency to prosecute from the authorities, means that those who wish to operate are within a gray area. An E-Dinar is currently being tested to see if it is a viable CBDC.
Lebanon is an interesting case because the local fiat currency has collapsed, leading to an upturn in crypto usage. Crypto operates in a gray area, has no official framework, and banks currently prohibit transactions. This situation is unlikely to change until the fiat currency collapse has been remedied.
H2: Solana’s Emerging Presence in Many MENA Markets
Solana (SOL) has a range of technical advantages that are well-suited to many of the unique regional needs. High speed and low cost mean micropayments become viable in a region where cross-border fees are high compared to the rest of the world. High transparency and institutional holding of more than 15.8 million SOL ($4 billion+) have combined with progressive outlooks in the UAE (seen as the SOL hub) and Bahrain to build momentum and establish a foothold in the region.
The Solmate launch, backed by $300 million of investment from the Pulsar Group, ARK Invest, RockawayX, and the Solana Foundation in the UAE, is also a major talking point. It has led to the creation of the first major physical infrastructure in the region.
H2: Crypto Gambling: Historically Strict Prohibition Throughout MENA
Local users who are considering looking at recommended SOL casinos should note that the acceptance of gambling and the acceptance of crypto are two distinct points. Sharia prohibits gambling in all forms, although there are slightly more lenient interpretations practiced in the North African countries that comprise the MENA region.
H2: The Regulatory Trends Driving MENA Crypto Adoption
The central nature of the faith and religious practice in many countries in the MENA region complicates the adoption of new financial paradigms. While the likes of the UAE and Bahrain take a progressive view, Egypt and Saudi Arabia are notably more cautious. The debate about whether or not crypto is halal is one that continues to be had right across the region, with many shades of gray being used to answer such questions.
Interestingly, the majority of countries in the MENA region are already piloting CBDC initiatives, irrespective of their stance on private crypto usage. This means that the immediate future of crypto in the MENA region may be more focused on cross-border CBDC projects and the entry of institutional users, as opposed to an explosion of private usage governed by strict frameworks.
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