Lawyer: New regulations in the UAE may prohibit cryptocurrency payments

ChainCatcher news, according to Cointelegraph, crypto industry lawyer Irina Heaver believes that the recent regulations issued by the United Arab Emirates (UAE) may ban cryptocurrency payments in the country. On June 5, the board of the UAE Central Bank discussed projects under the Financial Infrastructure (FIT) program, an initiative aimed at promoting digital transformation. During the meeting, the board approved the release of regulations for payment token services to regulate and license stablecoins. The new guidelines suggest that payment tokens in the country must be backed by the UAE Dirham and cannot be pegged to other currencies.

Heaver pointed out that the new regulations effectively prohibit the use of cryptocurrencies for payments within the UAE, unless they are licensed Dirham payment tokens or registered foreign payment tokens, neither of which currently exist. She believes this move contradicts the UAE's stance of supporting business and investment, expressing concern that the new regulations will hinder the country's progress in the Web3 and cryptocurrency sectors.