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UAE Just Dropped Stablecoin Rules: Here's What It Means
The Central Bank of UAE just gave the green light on stablecoin regulations, and it’s stricter than you might think.
The core rules:
This is basically the UAE saying: “We want stablecoins, but our way.” Not a blanket ban like some countries, but also not a free-for-all.
Why it matters: It’s a middle-ground approach. The CBUAE is protecting financial stability while opening the door to digital payments. Instead of fighting stablecoins, they’re bringing them under control—similar to what Singapore and Switzerland are doing.
The catch: Projects building on other stablecoins (USDT, USDC) or algorithmic tokens need to pivot or exit the market. Only AED-backed tokens get the stamp of approval.
Bottom line: UAE is building a regulated stablecoin ecosystem, not an open one. Good for institutional adoption, restrictive for innovation. Classic move: stability over experimentation.