American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

The Central Bank of the UAE approves AED Stablecoin’s preliminary license

by admin October 18, 2024
October 18, 2024

The Central Bank of the United Arab Emirates (CBUAE) has granted preliminary approval to AED Stablecoin, bringing the project a step closer to becoming the UAE’s first regulated dirham-pegged stablecoin.

This move follows the CBUAE’s Payment Token Service Regulation framework, which outlines specific licensing requirements for digital tokens.

AED Stablecoin’s in-principle approval positions it as a potential key player in the UAE’s evolving crypto market, where regulatory clarity is seen as essential to the sector’s sustainable growth.

What is AED Stablecoin’s role in the UAE’s crypto market?

AED Stablecoin’s preliminary license enables it to advance plans for issuing a regulated dirham-backed digital currency, known as AE Coin.

This approval is significant as it addresses concerns around restrictions on crypto payments, which arose following the CBUAE’s updated licensing rules.

Under these rules, only licensed dirham-pegged tokens are permitted for payments within the UAE. If fully licensed, AE Coin could serve as a local trading pair on both centralized and decentralized exchanges, allowing merchants to accept it for transactions involving goods and services.

CBUAE’s regulatory stance impacts crypto payments in the UAE

The CBUAE’s licensing framework has introduced stricter rules on crypto usage, particularly for payments.

The framework requires tokens to be pegged to the dirham and licensed, otherwise restricting their use for payments.

This shift aims to bring greater stability and oversight to the UAE’s digital currency landscape.

The approval of AED Stablecoin is viewed as a positive step toward aligning with these regulatory expectations, potentially providing a compliant digital payment solution for local users.

How could AE Coin shape the UAE’s digital finance landscape?

If fully licensed, AE Coin is expected to play a crucial role in the UAE’s digital finance ecosystem.

As a regulated stablecoin, it could facilitate smoother crypto-to-dirham transactions and offer a stable digital alternative for merchants.

This aligns with the UAE’s broader goals of advancing its digital economy while maintaining regulatory standards.

The coin’s integration into crypto exchanges and platforms could enhance the liquidity of the dirham in digital markets, thereby supporting broader adoption among both retail and institutional users.

Competing interests emerge as Tether targets the UAE market

AED Stablecoin is not the only entity eyeing the potential of a dirham-pegged digital asset.

Tether, a major player in the global stablecoin market, has partnered with local firms Phoenix Group and Green Acorn Investments to introduce its own version of a dirham-pegged stablecoin.

Source: Cointelegraph

This move indicates growing interest from international crypto companies in the UAE’s regulatory environment.

AED Stablecoin’s regulatory head start with the CBUAE approval could give it an advantage in building trust with local users.

Crypto exchanges expand as regulatory clarity attracts investments

The UAE’s regulatory clarity has been a magnet for major crypto exchanges looking to establish a foothold in the region.

Recently, OKX launched a retail and institutional trading platform in the UAE after securing a comprehensive license, including permissions for derivatives trading for qualified institutional investors.

Meanwhile, M2, another crypto exchange, has introduced a system enabling direct conversions of dirhams into Bitcoin (BTC) and Ether (ETH).

These developments underscore the UAE’s appeal as a hub for digital asset innovation amidst its clear regulatory framework.

The post The Central Bank of the UAE approves AED Stablecoin’s preliminary license appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
My EVgo stock price forecast was accurate: here’s what to expect
next post
Love the SCHD ETF? CLM and CRF are better yielding alternatives

Related Posts

‘A new life’: Ukrainian war amputees travel to...

June 3, 2024

David Lebryk set to depart as Musk’s DOGE...

February 1, 2025

China’s factory activity expands for third straight month,...

December 31, 2024

S&P 500, Nasdaq rise sharply ending 3-day losing...

October 27, 2024

Trump token speculation heats up as Polymarket bettors...

September 14, 2024

Some birds may use ‘mental time travel,’ study...

May 25, 2024

Six more years of Putin will worry many...

March 18, 2024

Taylor Swift fans express heartbreak, fear and relief...

August 8, 2024

‘Blast-furnace heat every day’: Record temperatures cancel classes,...

May 10, 2024

Dow and S&P slip on rising trade tensions;...

March 13, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved