{"id":31960,"date":"2024-06-05T23:19:28","date_gmt":"2024-06-05T23:19:28","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/uae-central-bank-introduces-licensing-system-for-stablecoins\/"},"modified":"2024-06-05T23:19:28","modified_gmt":"2024-06-05T23:19:28","slug":"uae-central-bank-introduces-licensing-system-for-stablecoins","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/uae-central-bank-introduces-licensing-system-for-stablecoins\/","title":{"rendered":"UAE central bank introduces licensing system for stablecoins"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1651154904271-a2bead5e-7ed0-4c15-aed7-6242536a9a08-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1651154904271-a2bead5e-7ed0-4c15-aed7-6242536a9a08-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1651154904271-a2bead5e-7ed0-4c15-aed7-6242536a9a08-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1651154904271-a2bead5e-7ed0-4c15-aed7-6242536a9a08-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>UAE central bank has approved new licensing for dirham-backed stablecoins.<\/li>\n<li>The licensing system is part of UAE\u2019s broader Financial Infrastructure Transformation (FIT).<\/li>\n<li>The Dubai regulator updated the rules to allow limited investments in unrecognized tokens.<\/li>\n<\/ul>\n<p>The Central Bank of the United Arab Emirates (CBUAE) has approved a new regulatory framework to oversee and license stablecoins, marking a significant step in the nation\u2019s financial innovation journey. The approval was announced after a recent <a href=\"https:\/\/wam.ae\/en\/article\/b3h9y1x-chaired-mansour-bin-zayed-cbuae-board-reviews\">CBUAE board meeting<\/a>, chaired by UAE Vice President and CBUAE Chairman Sheikh Mansour bin Zayed Al Nahyan, held at Qasr Al Watan in Abu Dhabi.<\/p>\n<p>The central bank\u2019s move is part of the UAE\u2019s broader Financial Infrastructure Transformation (FIT) program that is aimed at boosting digital transactions, enhancing the digital economy, and fostering innovation within the country.<\/p>\n<h2>The licensing system favours dirham-backed tokens<\/h2>\n<p>Kokila Alagh, founder of KARM Legal Consultants, <a href=\"https:\/\/www.unlock-bc.com\/124081\/uae-central-bank-approves-new-system-for-licensing-stablecoins\/\">explained<\/a> that the newly approved regulations provide clarity on the issuance, licensing, and supervision of dirham-backed payment tokens. Under the new system, payment tokens must be exclusively backed by UAE dirhams, prohibiting links to other currencies, digital assets, or algorithms.<\/p>\n<p>Furthermore, merchants and service providers within the UAE are restricted to accepting only dirham-backed tokens, ensuring a stable and regulated environment for digital payments.<\/p>\n<p>This initiative aligns with the UAE\u2019s strategic goals under the FIT program, which aims to advance the country\u2019s position as a leading hub for financial and digital payments.<\/p>\n<p>As part of these efforts, the CBUAE also announced plans to issue a central bank digital currency (CBDC).<\/p>\n<p>The introduction of a CBDC is expected to address inefficiencies in cross-border payments and stimulate domestic payment innovation, solidifying the UAE\u2019s competitive edge in the global financial landscape.<\/p>\n<h2>Dubai Financial Services Authority (DFSA) also updated its stablecoins regulations<\/h2>\n<p>In tandem with the CBUAE\u2019s moves, the Dubai Financial Services Authority (DFSA) has updated its own regulations concerning stablecoins. On June 3, the DFSA introduced new criteria for recognizing stablecoins, expanding its regulatory framework.<\/p>\n<p>Previously, the DFSA recognizes a limited number of crypto tokens, including <a href=\"https:\/\/coinjournal.net\/bitcoin\/what-is-bitcoin\/\">Bitcoin<\/a>, <a href=\"https:\/\/coinjournal.net\/ethereum\/what-is-ethereum\/\">Ethereum<\/a>, <a href=\"https:\/\/coinjournal.net\/litecoin\/what-is-litecoin\/\">Litecoin<\/a>, <a href=\"https:\/\/coinjournal.net\/ripple\/what-is-ripple\/\">XRP<\/a>, and Toncoin.<\/p>\n<p>However, with the revised token regime, the regulator now permits investments in unrecognized crypto tokens, provided such investments do not exceed 10% of a fund\u2019s gross asset value.<\/p>\n<p>These regulatory advancements underscore the UAE\u2019s commitment to embracing digital innovation while maintaining robust oversight.\u00a0By implementing these measures, the UAE is poised to enhance its financial infrastructure, ensuring a secure and efficient environment for both domestic and international digital transactions.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/uae-central-bank-introduces-licensing-system-for-stablecoins\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) UAE central bank has approved new licensing for dirham-backed stablecoins. The licensing system is part of UAE\u2019s broader Financial Infrastructure Transformation (FIT). The Dubai regulator updated the rules to allow limited investments in unrecognized tokens. The Central Bank of the United [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":31961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/31960"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=31960"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/31960\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/31961"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=31960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=31960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=31960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}