{"id":96840,"date":"2024-10-18T06:20:19","date_gmt":"2024-10-18T10:20:19","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=96840"},"modified":"2024-10-18T06:24:48","modified_gmt":"2024-10-18T10:24:48","slug":"uae-stablecoin-issuer-gets-approval","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/uae-stablecoin-issuer-gets-approval\/","title":{"rendered":"UAE Stablecoin Issuer Gets Approval from Central Bank"},"content":{"rendered":"\n

AED Stablecoin<\/a> leads the race to produce the UAE's first regulated dirham-pegged token as Tether awaits.<\/p>\n\n\n\n

\"UAE<\/figure>\n\n\n\n

The Central Bank of the United Arab Emirates (CBUAE) has granted preliminary approval to AED Stablecoin under its Payment Token Service Regulation framework, according to a press release from the company. <\/p>\n\n\n\n

This in-principle license positions AED Stablecoin as a leading contender to become the first issuer of a regulated dirham-pegged stablecoin in the UAE.<\/p>\n\n\n\n

This approval\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> helps alleviate concerns about potential restrictions on crypto payments, which emerged after the CBUAE introduced a new licensing framework. <\/p>\n\n\n\n

The framework prohibits the use of crypto for payments unless it involves licensed tokens pegged to the dirham.<\/p>\n\n\n\n

If fully licensed, AED Stablecoin's AE Coin could be used as a local trading pair for cryptocurrencies on exchanges and decentralized platforms. It would also enable merchants to accept the coin for goods and services.<\/p>\n\n\n\n

The central bank\u2019s framework also bans algorithmic stablecoins and privacy tokens, favoring stablecoins backed entirely by cash. <\/p>\n\n\n\n

Issuers are required to hold cash reserves in a separate escrow account fully denominated in dirhams at a UAE bank. <\/p>\n\n\n\n

Alternatively, they can hold at least 50% of the reserve in cash, with the remaining portion invested in UAE government <\/a>bonds and CBUAE Monetary Bills, with an average maturity of up to six months.<\/p>\n\n\n\n

UAE\u2019s Crypto-Friendly Environment<\/h2>\n\n\n\n

AED Stablecoin is expected to compete with Tether, the world\u2019s largest stablecoin issuer by market capitalization. <\/p>\n\n\n\n

\"UAE
Tether\u2019s USDT leads all stablecoins as it nears $120 billion market capitalization. Source: CoinGecko<\/em><\/figcaption><\/figure>\n\n\n\n

Tether recently announced partnerships with Phoenix Group and Green Acorn Investments to launch its own dirham-pegged stablecoin.<\/p>\n\n\n\n

Meanwhile, the UAE's favorable crypto regulatory landscape continues to attract major players. OKX recently launched a trading platform for both retail and institutional investors after securing a full license, including derivatives trading for qualified institutional investors. <\/p>\n\n\n\n

Additionally, crypto exchange M2 has introduced a new system allowing residents to convert dirhams directly into Bitcoin and Ether.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

AED Stablecoin leads the race to produce the UAE’s first regulated dirham-pegged token as Tether awaits. The Central Bank of the United Arab Emirates (CBUAE) has granted preliminary approval to AED Stablecoin under its Payment Token Service Regulation framework, according to a press release from the company. This in-principle license positions AED Stablecoin as a […]<\/p>\n","protected":false},"author":56,"featured_media":96843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1227,1935,1502,1531,1103,1394],"class_list":["post-96840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-payments","tag-policy","tag-regulation","tag-stablecoin","tag-tether","tag-uae"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/UAE-Stablecoin-Issuer-Gets-Approval-from-Central-Bank.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96840","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\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=96840"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/96843"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=96840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=96840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=96840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}