Cryptocurrency firms in the UAE are embarking a new era of regulatory clarity and market stability following the Central Bank of the UAE’s (CBUAE) decision to introduce a comprehensive licensing system for stablecoins.
This move is a part of the “Payment Token Services Regulation,” which has been met with enthusiasm from industry professionals who see it as a crucial step in legitimising digital currencies into the UAE’s financial ecosystem.
“In a sufficiently developed market, regulation can unlock further innovation by providing clear guardrails for businesses, as well as protections for consumers.” said Jason Allegrante, Chief Legal and Compliance officer at digital assets infrastructure provider Fireblocks.
The regulation requires the cryptocurrency to be backed by dirhams. Experts believe this could initiate the development of a robust domestic cryptocurrency market and attract international experts to the market. It aims to ensure the safety and efficiency of the payment token services, protect assets from misappropriation, and promote consumer protection while fostering innovation in the financial sector.
