Regulatory Alerts2024-08-31
Payment Token Services Regulation
The Central Bank of the United Arab Emirates issued the Payment Token Services Regulation to establish the licensing and registration framework for digital payment token services. The rule defines three core service categories—issuance, conversion, and custody/transfer—while explicitly prohibiting algorithmic stablecoins and privacy tokens. It mandates strict consumer protection, asset reserve safeguards, and ongoing supervision to ensure the safety and efficiency of the sector.
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