---
type: free_zone
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "middle_east", "fatf", "crypto_friendly"]
aliases: ["RAKDAO", "ARE-RAK"]
created: 2026-04-13
updated: 2025-09-01
compile_into: ["[[country--united-arab-emirates]]"]
sources:
  - name: "RAK DAO"
    url: "https://www.rakdao.com"
    type: "official"
---

#  RAK Digital Assets Oasis (RAKDAO) — Crypto Regulation

> Ras Al Khaimah's Innovation City free zone offers a crypto-friendly environment with streamlined licensing, banking setup, and support for Web 3.0 and DAO activities under the RAK DAO Regulations 2023.

## Overview

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Sub-jurisdiction of | [[country--united-arab-emirates|United Arab Emirates]] |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Low |
| Region | [[domain--middle-east|middle east]] |
| Currency | [[entity--aed|AED]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 0% - no personal income tax in RAK/UAE |
| Capital Gains (Corporate) | 0% within RAK DAO free zone |
| VAT on Crypto | No |
| Mining Tax | Subject to free zone tax exemption if substance requirements met |
| Staking Tax | No personal tax |
| Airdrop Tax | No personal tax on airdrops |

RAK DAO entities benefit from 0% corporate tax within the free zone under the UAE's qualifying free zone regime. No personal income tax applies.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--rak-dao|RAK DAO]] / RAK ICC |
| Framework | RAK DAO Regulations 2023 |
| Ease | easy |
| Cost | $5,000 - $25,000 |
| Timeline | 1-2 months |

Fastest path to licensing with simple, all-inclusive packages and simultaneous banking setup in Innovation City free zone.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | compliant |

## DeFi

**Status:** Legal

DeFi activities are supported and compliant within the Innovation City free zone, enabling wallet-native flows and DAO-friendly operations.

## Stablecoins

**Status:** no_rules

RAK DAO does not have specific stablecoin rules. Stablecoin issuance activities would likely fall under federal-level UAE regulation or VARA/SCA oversight.

## NFTs

**Status:** no_rules

No specific NFT regulation; generally permitted

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 5% |
| Climate | arid |
| Infrastructure | good |

Mining is legal with competitive electricity costs and good infrastructure in Ras Al Khaimah. The arid climate affects cooling costs moderately.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 65/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

No significant enforcement actions reported; jurisdiction actively encourages crypto business

## CBDC Status: pilot

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [RAK DAO](https://www.rakdao.com)