The UAE has become a global hub for blockchain innovation and virtual asset investment, thanks to the rapid growth of the digital economy. In parallel to its emergence as a leading financial center, the jurisdiction has also developed a sophisticated legislative framework to respond to the challenges posed by cross-border digital financial crime. It is important to understand how the UAE deals with extradition requests and the nature of prosecutions for cyber-enabled crimes for both cryptocurrency and international criminal law. This article examines the legal structures and enforcement procedures for the extradition of persons accused of crimes using cryptocurrency.
Legislative foundations of international judicial cooperation
The primary framework for international judicial cooperation in the United Arab Emirates is provided by Federal Law No. 39 of 2006 on International Judicial Cooperation in Criminal Matters. This law is the basic text for all extradition cases. It contains the procedural and substantive requirements that must be satisfied before a wanted person is turned over to a foreign authority. This law was recently updated and amended by Federal Decree Law No. 38 of 2023, which introduced key amendments to enhance the effectiveness of mutual legal assistance and, at the same time, ensured robust protections for individual rights and national sovereignty.
Article 7 of Federal Law No. 39 of 2006 indicates that there are several strict conditions that must be met for an extradition request to be considered valid. The offense for which surrender is requested shall be an offense punishable by imprisonment for a period of at least one year under the law of the requesting State. Article 7(4) explains that the legal classification or language used by the two states does not need to be the same, as long as the conduct is a criminal offense under the laws of both states.
The 2023 amendments provide some flexibility in respect of petitions involving more than one offense. Under Article 8, the competent authority has the discretion to authorize surrender for all offenses listed in a request, even if some of the offenses do not meet the minimum sentence requirements, as long as the main charges satisfy the legal requirements for extradition.
Mandatory and discretionary grounds for refusal
The United Arab Emirates has a clear list of conditions under which it must refuse extradition. The Federal Law No. 39 of 2006, Article 9, prohibits the surrender if the person sought is a citizen of the UAE, or if the UAE judicial authorities have jurisdiction over the offense, or if the offense is political in nature. The person sought shall also not be surrendered if he has already been investigated, tried, convicted, or acquitted for the same offense, if a final judgment has been issued, or if the criminal case or sentence has become time-barred.
Important grounds of protection are also laid down in Article 9. Surrender shall not be granted if there are reasonable grounds to believe that the request is made for the purpose of prosecuting or punishing the person on account of his race, sex, religion, nationality, or political opinion, or that such grounds may prejudice the position sought by the person. Article 9(10) further provides that surrender shall be refused if the person sought has been or may be subjected to torture, inhuman or degrading treatment, or a disproportionately harsh sentence or if the minimum guarantees under the UAE Criminal Procedure Law are not available.
Substantive criminalization of cryptocurrency-related offenses
In cryptocurrency-related extradition cases, the requesting state must also show that the underlying conduct is punishable in the UAE. The relevant UAE provisions will be fact-specific. It is particularly governed by Federal Decree-Law No. 34 of 2021 on Countering Rumors and Cybercrimes in respect of the misuse of Digital Assets through websites, electronic systems, information networks, or other information technology tools.
For example, unauthorized access to an electronic system, hacking of accounts or platforms, acquisition of passwords or access codes for unlawful purposes, and online fraud may fall within the Cybercrime Law where the required elements are satisfied. Article 30 may also be relevant where electronic systems are used to transfer, deposit, acquire or conceal funds derived from unlawful sources. In addition, where cryptocurrency is used to disguise or move illicit proceeds, UAE anti-money laundering legislation may also apply.
Anti Money Laundering (AML) and Counter Terrorist Financing (CTF) frameworks
The UAE has undertaken major legislative reforms to bring its AML/CTF regime in line with the standards set by the Financial Action Task Force (FATF). This led to the issuance of Federal Law No. 10 of 2025 to replace Federal Decree Law No. 20 of 2018, creating a detailed framework that explicitly included virtual assets and the activities of Virtual Asset Service Providers (VASPs).
The most significant change made by the 2025 law is probably lowering the evidentiary bar for proving knowledge in money laundering offences. Article 2 now allows that the knowledge that the funds are proceeds of a crime can be inferred from the objective circumstances of the case. ‘This means liability can arise where a person either actually knew or should have known about the illicit nature of the funds – a development that places a heavy burden of due diligence on exchange operators and custodial service providers.
The 2025 law also introduces new crimes centering on abuses of digital systems. Article 35 (2) criminalises “the act of enabling a third party to benefit from an account within a financial institution or VASP where a person has reason to believe that the account will be misused”. This is an important provision to combat the use of mule accounts in cryptocurrency fraud. Moreover, Article 5(2) allows the Chief of the Financial Intelligence Unit to order the freezing of funds suspected of being related to money laundering, the financing of terrorism or the financing of proliferation, including funds held with financial institutions, DNFBPs or VASPs, for a period not exceeding thirty days, which can be extended by the Attorney General or his delegate.
International cooperation in AML matters shall be governed by Article 21 of the Federal Decree-Law No. 10 of 2025. The UAE may enforce foreign judgments or judicial orders for provisional measures or confiscation of criminal property or funds of equivalent value in relation to predicate offenses or money laundering offenses, without conducting a separate national investigation. It also requires competent authorities to give priority to requests for cooperation and provides for judicial assistance in tracing, freezing, seizing and confiscating criminal funds or assets, whether held through financial institutions, DNFBPs or VASPs.
Virtual Assets Regulatory Authority (VARA)
The Emirate of Dubai has a specific regulatory environment for virtual assets, thanks to the establishment of the Dubai Virtual Assets Regulatory Authority under Law No. 4 of 2022. VARA is the first independent regulator dedicated to virtual assets, and its laws apply to all organizations operating in Dubai, including its free zones, but excluding the Dubai International Financial Centre (DIFC).
Licensed VASPs must comply with strict anti-money laundering and Know Your Customer requirements. They are also required to follow the Travel Rule for virtual asset transfers, which means collecting and transmitting required information about the originator and the beneficiary of a transfer. This helps ensure that suspicious or potentially criminal cross-border virtual asset transactions can be traced.
Procedural stages of the extradition process
Extradition of a person from the United Arab Emirates is a complex intersection of the judicial and executive branches. The process typically begins with an international alert (e.g. an INTERPOL Red Notice) which enables a provisional arrest before a formal request is made.
Once a provisional arrest has been effected, the requesting State is to submit a formal extradition request through diplomatic channels. The application is sent to the Central Authority (the Ministry of Justice) which checks the formal requirements. The request shall be accompanied by a number of essential documents translated into Arabic in accordance with the provisions of Article 11 of Federal Law No. 39 of 2006, including a detailed description of the wanted person with photographs, a certified copy of the arrest warrant or the final judgment, a statement of the factual circumstances of the case and the exact text of the legal provisions applicable to the crime in the requesting state.
The Central Authority then transmits the request to the Public Prosecution, which opens a hearing before the competent Court of Appeal. The court will look to whether the request is legal by looking to whether the requirements of dual criminality and minimum sentence are met. If the Court of Appeal upholds the extradition, the person has thirty days to file an appeal with the competent court.
Summary and temporary extradition
Under Articles 13 and 14 of Federal Law No. 39 of 2006, accelerated surrender is provided for where the request is for one state and the requested person gives written consent to the surrender. Such written consent shall identify the person and the case, and shall state that it is given voluntarily and with full knowledge of the legal consequences thereof.
Article 10, for its part, provides for temporary surrender where the person is already subject to investigation or prosecution in the UAE for another offence. Where this is the case, extradition is normally deferred until the conclusion of the UAE proceedings. However, the UAE may temporarily surrender the person on the condition that the requesting State shall return the person as soon as practicable after a decision is issued, or within such time as may be specified by the UAE, not to exceed six months from the surrender.
Conclusion
The United Arab Emirates has set up a sophisticated and robust legal framework to tackle the complexities of extradition and cryptocurrency crimes. Federal Law No. 39 of 2006 concerning international judicial cooperation in criminal matters, amended by Federal Decree Law No. 38 of 2023 simplifies the process of extradition for a number of offenses and strengthens the procedures for provisional arrest. Federal Decree Law No. 34 of 2021 provides a substantive basis for the criminalization of unauthorized access, money laundering through digital systems and unlicensed promotion.
The AML/CTF Law 2025 (Law No. 10) includes virtual assets and provides for the enforcement of overseas seizure orders. Under Dubai Law No. 4 of 2022, VARA is required to ensure regulation by applying KYC/AML and Travel Rules to commercial crypto activities.