UAE Central Bank Approves Stablecoin Regulation and Licensing Rules

According to Foresight News, the Central Bank of the United Arab Emirates (CBUAE) board has approved the issuance of stablecoin regulation and licensing rules. These rules clarify the issuance, licensing, and regulation of payment tokens supported by the UAE Dirham (AED). Legal experts in the UAE have stated that payment tokens must be backed by the UAE Dirham (AED) and cannot be linked to other currencies, digital assets, or algorithms. Merchants and service providers can only accept tokens supported by AED and cannot accept other virtual assets. This move by the CBUAE is seen as a significant step towards regulating the use of digital currencies in the country, ensuring that they are backed by a stable and recognized currency. The new rules aim to provide clarity and security for businesses and individuals using these payment tokens, while also protecting the integrity of the UAE's financial system.