The UAE Central Bank has approved a stablecoin licensing system, which would provide a regulatory landscape to all aspects of stablecoins, from issuance to supervision.
Stablecoin regulation has occupied an important place in the list of regulatory aspects of the crypto industry worldwide. Going in this direction, the UAE Central Bank has approved a stablecoin licensing system for the country. This new piece of stablecoin regulation will ensure transparency in the UAE stablecoin sector.
An official report on the meeting revealed that several dignitaries witnessed the approval. The meeting was regarding the overall aspects of the country’s progress in financial services and upcoming technologies.
It stated, “The meeting saw the Board approve the issuance of a regulation for licensing and overseeing stablecoins, and a series of policies aimed at supporting the banking and insurance sectors and services related to financial infrastructure. “
Meanwhile, other news reports mentioned how the crypto industry had reacted positively to the development. The industry hailed the move, and claimed it was a win for the virtual assets space. On the other hand, it noted the government’s support for the potential of the sector. Moreover, the system mandates new stablecoins to be backed by fiat currency, which was appreciated by all stakeholders.
In any case, crypto regulatory developments have gained pace in recent months. Even in the US and Japan, recent events regarding stablecoins have been notable.
One of the most significant aspects of the UAE’s crypto-friendly stance is its evolving legal framework. Besides, unlike a complete ban or restrictive regulations, the UAE has opted for a measured approach. It has emerged as a frontrunner in the global conversation surrounding crypto and blockchain. The government has actively launched initiatives aimed at promoting innovation and development in the blockchain space.
Similarly, the latest licensing system is a move in this direction.
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