UAE Central Bank Board approves stablecoin regulation and licensing rules

The Central Bank of the United Arab Emirates (CBUAE) board approved the release of regulations for stablecoin regulation and licensing. The regulations clarify the issuance, licensing, and regulation of payment tokens supported by the United Arab Emirates Dirham (AED). UAE lawyers stated that payment tokens must be supported by the 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.