UAE Central Bank Board Approves Issuance of Stablecoin Regulation and Licensing Regulations

On June 5th, the board of the Central Bank of the United Arab Emirates (CBUAE) approved the issuance of stablecoin regulation and licensing regulations that clarify the issuance, licensing and regulation of payment tokens backed by the UAE dirham (AED). According to the UAE lawyer, payment tokens must be backed by the UAE dirham (AED) and cannot be pegged to other currencies, digital assets or algorithms. Merchants and service providers can only accept AED-backed tokens and cannot accept other virtual assets.