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GlossaryUUAE Stablecoin Regulation

UAE Stablecoin Regulation

UAE’s Central Bank regulations restricting stablecoin use to licensed AED-pegged payment tokens, effective from 2025.

What is UAE Stablecoin Regulation?

The Central Bank of the UAE (CBUAE) issued the Payment Token Services Regulation in June 2024, fully effective by August 2025, mandating that merchants accept only licensed dirham-backed stablecoins, excluding non-AED tokens and other digital assets. In 2025, approvals like AE Coin in December and ADQ’s stablecoin highlight centralized oversight for stability, with fintechs required to obtain licenses by July 2025. The framework operates across mainland UAE, excluding free zones like DIFC and ADGM, which have separate rules, receiving US$30 billion in digital assets by mid-2024.

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