{"id":80268,"date":"2024-06-05T10:32:17","date_gmt":"2024-06-05T14:32:17","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=80268"},"modified":"2024-06-05T10:32:20","modified_gmt":"2024-06-05T14:32:20","slug":"uae-central-bank-approves-stablecoins-licensing-system","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/uae-central-bank-approves-stablecoins-licensing-system\/","title":{"rendered":"UAE Central Bank Approves Stablecoins Licensing System"},"content":{"rendered":"\n

The Central Bank of the United Arab Emirates (CBUAE) board of directors has authorized implementing a new regulation and licensing framework for stablecoins<\/a>.<\/p>\n\n\n\n

\"UAE
UAE Central Bank Approves Stablecoins Licensing System<\/figcaption><\/figure>\n\n\n\n

During a meeting in Abu Dhabi, the board reportedly deliberated on initiatives under the government's financial infrastructure transformation (FIT) program. The initiative aims to promote innovation, advance the country's digital economy, and increase the volume of digital transactions.<\/p>\n\n\n\n

\"\"
UAE central bank meeting held in Qasr Al Watan, Abu Dhabi. Source: Emirates News Agency<\/em><\/figcaption><\/figure>\n\n\n\n

Sheikh Mansour bin Zayed Al Nahyan, the governor of the CBUAE and the UAE vice president, presided over the meeting. The central bank's board members, CBUAE Governor Khaled Mohamed Balama and deputy chairmen Abdulrahman Saleh Al Saleh and Jassem Mohammad Al Zaabi, were among the attendees.<\/p>\n\n\n\n

UAE approves a new System for Stablecoin licensing<\/h2>\n\n\n\n

During the meeting, the board endorsed issuing a regulation for the supervision and licensing of stablecoins. The regulations elucidate the issuance, licensing, and supervision of AED-backed payment tokens, according to Kokila Alagh, the founder of KARM Legal Consultants, in an interview with local media outlet Unlock Blockchain.<\/p>\n\n\n\n

Additionally, the UAE lawyer stated that payment tokens must be supported by UAE dirhams (AED) and cannot be associated with other currencies, digital assets, or algorithms. She further stated that merchants and service providers are restricted from accepting tokens supported by AED and cannot accept any other virtual assets.<\/p>\n\n\n\n

The Financial Transformation Program of the United Arab Emirates<\/p>\n\n\n\n

The meeting's specifics have yet to be disclosed; however, it is believed that the topics discussed included significant initiatives within the FIT program. The CBUAE announced on February 13 that it would issue a central bank digital currency \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>(CBDC) as part of the FIT initiative.<\/p>\n\n\n\n

The issuance of a CBDC aims to promote domestic payment innovation and resolve cross-border payment inefficiencies. Issuing a CBDC would enhance the UAE's competitiveness as a financial and digital payments center, as per the CBUAE.<\/p>\n\n\n\n

Dubai regulator amends crypto token regulations.<\/p>\n\n\n\n

In addition to stablecoin licensing, a financial regulator in the United Arab Emirates recently revised its regulations regarding stablecoin recognition. The Dubai Financial Services Authority (DFSA) implemented supplementary criteria for identifying stablecoins on June 3.<\/p>\n\n\n\n

Currently, the regulator only acknowledges a restricted number of crypto tokens, such as Bitcoin, Ether, Litecoin, XRP, and Toncoin (TON). This implies that tokens other than the five recognized crypto assets are not eligible for investment by funds under the DIFC.<\/p>\n\n\n\n

Nevertheless, the regulator permitted the investment of unrecognized crypto tokens under the revised token regime, provided that the investment did not exceed 10% of the gross asset value of the funds.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Central Bank of the United Arab Emirates (CBUAE) board of directors has authorized implementing a new regulation and licensing framework for stablecoins. During a meeting in Abu Dhabi, the board reportedly deliberated on initiatives under the government’s financial infrastructure transformation (FIT) program. The initiative aims to promote innovation, advance the country’s digital economy, and […]<\/p>\n","protected":false},"author":12,"featured_media":62452,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[19842,926,19841],"class_list":["post-80268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-licensing-syatem","tag-stablecoins","tag-uae-central-bank"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/10\/image-75.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/80268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=80268"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/80268\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/62452"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=80268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=80268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=80268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}