The landscape of cryptocurrency regulations across the Middle East and North Africa (MENA) is evolving rapidly as of 2026. This guide explores the legal status, licensing requirements, and regulatory frameworks in various MENA countries, highlighting significant developments and trends.
MENA Crypto Regulations 2026: A Country-by-Country Overview
The MENA region showcases a mix of progressive and restrictive approaches to cryptocurrency. Countries such as the UAE have established comprehensive regulatory frameworks, while others, like Kuwait, maintain a highly restrictive stance.
United Arab Emirates: Leading in Crypto Innovation
The UAE is at the forefront of crypto regulations in the MENA region. In September 2025, the Central Bank mandated that all crypto and blockchain organizations obtain licenses or face fines up to AED 1 billion (approximately $272 million). For existing users, a grace period is in effect until September 2026.
- Dubai utilizes the Virtual Assets Regulatory Authority (VARA) to regulate a broad range of crypto services.
- Abu Dhabi follows a different path, using the Abu Dhabi Global Market (ADGM) and the Financial Services Regulatory Authority (FSRA) with a focus on institutional regulations.
- Privacy tokens and algorithmic stablecoins face prohibition in 2026.
Saudi Arabia: Navigating Regulatory Ambiguity
Saudi Arabia is marked by a cautious approach to cryptocurrency. While not outright illegal, crypto trading operates in a gray area due to insufficient regulations. The Communications & Security Technology Commission (CST) is responsible for drafting rules, but a clear licensing pathway for Virtual Asset Service Providers (VASPs) is lacking.
The government is exploring Central Bank Digital Currency (CBDC) options, but Sharia compliance issues remain a concern. Currently, banks are restricted from offering crypto transactions, with locals relying on international trading platforms.
Bahrain: A Progressive Regulatory Environment
Bahrain stands out as a progressive player in the Gulf Cooperation Council (GCC). The Central Bank of Bahrain (CBB) has established a comprehensive framework for crypto operations, permitting licensed exchanges to function under strict anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations.
- The focus is on fintech investments in addition to crypto integration.
- VASPs must obtain approval from the CBB.
Qatar: Shifting from Prohibition to Regulation
Qatar has transformed its approach to cryptocurrencies following the establishment of the Digital Asset Regulatory (DAR) framework in 2025. This new framework emphasizes asset tokenization, smart contracts, and the development of a unique regulatory zone for digital assets.
Kuwait: Maintaining a Restrictive Stance
Kuwait’s regulatory approach is predominantly restrictive. Unauthorized mining has been heavily policed, leading to significant reductions in electricity consumption. Presently, there is no licensing framework for VASPs, and crypto trading is viewed as high-risk and low-reward.
Oman: Conservative Islamic Financial Principles
Oman has yet to legislate specifically regarding cryptocurrencies. The general use of crypto is prohibited based on traditional Islamic financial principles. Ongoing CBDC pilot projects show some interest in digital innovation without immediate regulatory change.
Egypt: A Complex and Contradictory Landscape
In Egypt, cryptocurrency trading is illegal due to rulings from the Grand Mufti, declaring it haram. Although the Central Bank of Egypt prohibits crypto transactions, there is ongoing investment in blockchain technology for government and banking sectors.
North Africa: Morocco, Tunisia, and Lebanon
In Morocco, foreign exchange regulations effectively ban crypto trading. Tunisia shows slight openness with a small domestic user community navigating a gray area without formal regulations. Meanwhile, in Lebanon, the collapse of the local fiat currency has led to a rise in crypto usage, yet the absence of a formal framework hampers growth.
Trends and Future Directions
The adoption of crypto in the MENA region is shaped by religious beliefs and regulatory attitudes. While the UAE and Bahrain promote innovation, countries like Egypt and Saudi Arabia exercise caution, often questioning the halal status of cryptocurrencies.
| Country | Regulatory Status | Key Features |
|---|---|---|
| UAE | Progressive | Comprehensive framework; strict licensing |
| Saudi Arabia | Ambiguous | No clear licensing; exploring CBDC |
| Bahrain | Progressive | Support for fintech; strict AML/CFT |
| Qatar | Emerging | New DAR framework; asset tokenization |
| Kuwait | Restrictive | High risk; no VASP licensing |
| Oman | Conservative | No specific laws; CBDC interest |
| Egypt | Complex | Prohibited trading; investments in blockchain |
As the region continues to pilot CBDC initiatives, future developments in MENA may lean towards institutional usage, reshaping the crypto landscape while mitigating risks associated with private cryptocurrency usage.
