The United Arab Emirates was officially removed from the FATF grey list on February 23, 2024. That’s not just a bureaucratic win-it’s a game-changer for crypto businesses operating in or near the region. For years, being on the grey list made it harder for UAE-based exchanges, wallet providers, and blockchain startups to open bank accounts, partner with global firms, or even process international payments. Banks were nervous. Investors hesitated. Now? Everything’s different.

Why the FATF Grey List Mattered for Crypto

The FATF grey list isn’t a punishment. It’s a warning sign. When a country is on it, international banks assume there’s a higher risk of money laundering and terrorist financing. That means stricter checks, longer processing times, and sometimes outright refusal to do business. For crypto companies, this was a nightmare. Even if they were fully compliant, they got caught in the same net as risky actors.

Before February 2024, UAE crypto firms had to jump through hoops just to get a payment gateway. Some had to register in Malta or Singapore just to access banking services. Others paid higher fees to third-party processors who were willing to take the risk. It wasn’t just inconvenient-it was expensive. And it scared off serious investors who didn’t want their funds tied to a jurisdiction under international scrutiny.

What Changed in the UAE?

The UAE didn’t just tweak a few rules. It rebuilt its financial crime defenses from the ground up. Here’s what they actually did:

• Created a specialized court to handle financial crimes-no more dragging cases through general courts.
• Expanded the powers of the Financial Intelligence Unit (FIU), giving it more staff, better tools, and direct access to bank and crypto transaction data.
• Introduced mandatory AML/CFT training for all Designated Non-Financial Businesses and Professions (DNFBPs), including crypto exchanges and virtual asset service providers.
• Started issuing real penalties: licenses suspended, fines imposed, executives prosecuted.
• Improved international cooperation-now they actively send and respond to mutual legal assistance requests within days, not months.

These weren’t just paper reforms. They were enforced. In 2023 alone, the UAE suspended over 20 licenses in the precious metals and crypto sectors for AML violations. That sent a clear message: compliance isn’t optional.

How Crypto Businesses Benefited

The moment the UAE was removed from the grey list, crypto companies started seeing results:

• Banks reopened doors. Major international banks like HSBC, Standard Chartered, and Citibank resumed onboarding UAE-based crypto firms. One exchange in Dubai told me they went from 18 months of rejections to a signed banking agreement in 3 weeks.
• Investment flowed in. In Q1 2024, UAE-based crypto startups raised $287 million-up 140% from the same period in 2023. Investors no longer had to worry about regulatory fallout.
• Global partnerships became possible. Companies like Bybit and OKX expanded their regional hubs in Dubai. Chainalysis, the blockchain analytics firm, opened a new office in Abu Dhabi to support local regulators.
• Regulatory clarity improved. The UAE’s Virtual Assets Regulatory Authority (VARA) and the Securities and Commodities Authority (SCA) started working in sync. Now, crypto firms know exactly what’s expected: KYC checks, transaction monitoring, suspicious activity reporting.

It’s not just about big players. Even small NFT marketplaces and DeFi protocol developers in Sharjah and Ras Al Khaimah now have access to payment processors they couldn’t touch before.

The Ripple Effect: EU Followed Suit

Here’s something most people missed: the European Union didn’t remove the UAE from its own grey list until June 2025-over a year after FATF did. That delay created a weird situation. Even after FATF cleared the UAE, EU banks still treated UAE entities as high-risk. That meant crypto firms had to deal with double standards: trusted by the U.S. and Asia, but still blocked by Europe.

That changed in June 2025. When the EU finally aligned with FATF, it removed the UAE along with six other countries. Now, UAE crypto businesses can operate without regional friction. No more splitting operations between Dubai and Cyprus just to satisfy EU compliance.

What’s Still Unresolved?

The removal didn’t magically fix everything. There are still gaps:

• Not all crypto firms are fully compliant. Some still use offshore entities to avoid reporting.
• Regulators are still catching up on DeFi protocols-many operate without a physical presence, making oversight tricky.
• There’s no official UAE-wide licensing system for crypto yet. VARA issues licenses, but the process is still evolving.

And while the UAE’s AML system is now one of the strongest in the region, it’s not perfect. FATF will conduct its next full review in 2026. That means the UAE has to keep improving. One slip-up-like a major money laundering case slipping through-could trigger renewed scrutiny.

What This Means for Global Crypto

The UAE’s success isn’t just local. It’s a blueprint. Countries in Africa and Latin America that are still on the grey list are watching closely. They see that compliance isn’t about giving up sovereignty-it’s about gaining trust.

For crypto, this shift means two things:

1. Regulation can be done right. The UAE didn’t ban crypto. They regulated it-strictly, transparently, and with enforcement.
2. Compliance attracts capital. Investors don’t just want innovation. They want stability. The UAE proved you can have both.

Crypto isn’t going to thrive in places with weak oversight. It’s going to thrive where rules are clear, enforcement is real, and banks are willing to work with you. The UAE is now one of those places.

What’s Next?

The next big move? Expect more UAE-based crypto firms to go public or list on global exchanges. We’re already seeing early signs: two Dubai-based tokenization platforms are in talks with Nasdaq and the London Stock Exchange.

Also, watch for more cross-border crypto partnerships. The UAE is now a bridge between Asia, Europe, and Africa. Crypto projects that want to scale globally are choosing Dubai as their operational base-not because it’s trendy, but because it’s reliable.

The FATF grey list removal wasn’t the end. It was the starting line.