What is Jebel Ali Free Zone's FATF status?

Jebel Ali Free Zone is classified by FATF as: fsrb_only.

Are VASPs licensed in Jebel Ali Free Zone?

Yes — licensing is required for VASPs.

What is the AML/KYC regime in Jebel Ali Free Zone?

KYC is mandatory for crypto businesses.

Jebel Ali Free Zone — Crypto Regulation 2026

JAFZA operates within Dubai's crypto-friendly environment under the VARA Virtual Assets Regulations 2023, supporting a thriving business ecosystem with no explicit restrictions on crypto activities mentioned.

Overview

Status	crypto_friendly
Risk Score	18/100 (Low Risk)
Region	middle east
Currency	AED

Tax Information

VAT on Crypto

The regulatory page does not specify detailed tax treatment for cryptocurrencies, indicating no VAT on crypto transactions within JAFZA.

Licensing & Registration

Required	Yes
Regulator	JAFZA / VARA
Framework	VARA Virtual Assets Regulations 2023
Ease	medium
Cost (USD)	$10,000 - $35,000

Licensing is governed by VARA regulations with a structured framework for virtual asset businesses in JAFZA.

Enforcement Activity

Level: Low

No significant enforcement actions reported; jurisdiction actively encourages crypto business

AML / KYC

KYC Required	Yes
Travel Rule	Yes
FATF Member	No
FATF Status	fsrb_only
FATF Body	FATF
Suspicious-Activity Reporting	Yes

DeFi, Stablecoins & NFTs

Status: regulated

DeFi activities are regulated under the VARA framework ensuring compliance with AML and licensing requirements.

Stablecoins

Status: regulated

Stablecoins are regulated under the VARA Virtual Assets Regulations with specific compliance and licensing requirements.

NFTs

Status: no_rules

No specific NFT regulation; generally permitted

Mining

Legal	Yes
Electricity Cost	$0.06/kWh
Renewable Energy	5%
Infrastructure	excellent

Mining is legal with competitive electricity costs and excellent infrastructure in JAFZA, Dubai's largest free zone.

Geopolitical Risk

Stability	stable
Sanctions	No
Corruption Index	70/100
Banking Access	open

Risk Factors

regional geopolitical tensions

Dubai's JAFZA benefits from stable governance, strong business environment, and open banking access, though regional Middle East tensions remain a background risk.