The Board of Directors of the Central Bank of the UAE has approved the issuance of regulations and licensing for stablecoins

ChainCatcher news, the board of the Central Bank of the United Arab Emirates (CBUAE) has approved the release of regulations for the licensing and regulation of stablecoins, which clarify the issuance, licensing, and regulation of payment tokens backed by the UAE Dirham (AED). UAE lawyers stated that 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.