The UAE Central Bank has introduced a regulatory framework for stablecoins, aiming to provide clarity and reduce legal uncertainties for businesses.
Points
- The framework encourages secure interactions between FinTech companies and virtual asset service providers （VASPs）.
- Financial free zones are exempt, allowing flexibility for international business operations.
- The regulation recognizes specific use cases for foreign payment tokens, including NFTs.
- A phased approach will be taken to develop a dirham-backed stablecoin.
The UAE Central Bank has announced a new regulatory framework for stablecoins, aiming to provide clarity and reduce legal uncertainties for businesses operating in the sector. This move is intended to encourage secure interactions between FinTech companies and virtual asset service providers （VASPs）.
One of the key aspects of the regulation is the exemption of financial free zones, which allows for some flexibility in international business operations. The framework also recognizes specific use cases for foreign payment tokens, including non-fungible tokens （NFTs）, to foster collaboration between FinTech firms and VASPs.
A phased approach will be employed to develop a dirham-backed stablecoin, ensuring a smooth transition for stakeholders. This approach will allow time for the necessary infrastructure to be built and tested. Meanwhile, Bitcoin and Ether will remain integral to corporate treasuries and investment portfolios, being relegated to investment and trading purposes.
The global stablecoin market is expanding rapidly, with stablecoin purchases reaching $40 billion in March 2024. The UAE’s new regulation emphasizes the need for robust oversight, reflecting lessons learned from past market collapses.
解説
- The UAE’s regulatory framework for stablecoins positions the country as a forward-thinking hub for cryptocurrency and blockchain innovation.
- By exempting financial free zones, the regulation balances strict oversight with flexibility, attracting international businesses.
- The phased approach to developing a dirham-backed stablecoin demonstrates a cautious yet progressive stance, ensuring stability and confidence in the market.