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- The Central Bank of the United Arab Emirates (CBUAE) admitted tentative approval for dirham-pegged stablecoin (AE Coin).
- Accepted in accordance with the Regulations of the payment token service, The goal of AE Coin is to increase the availability of cryptocurrencies in the Emirates.
- It can bring many benefits to the financial sector, including more stable and transparent transactions than traditional banking methods.
CBUAE gave In principle, AED Stablecoin approval establish your own fiat-based virtual currency.
AED Stablecoin’s green light puts AE Coin at the forefront of becoming the Emirates’ first regulated dirham-pegged stablecoin.
If fully approved, the virtual currency could facilitate cryptocurrency payments Emirati-based companies and individuals with new opportunities thrive in the digital economy.
The AE coin will enhance Emirates’ financial sector
According to Chainalytic’s latest data, the The United Arab Emirates is the third largest cryptocurrency economy in the Middle East and North Africa (MENA).
AE coin (accepted on basis Terms and conditions of the payment token service framework) aims to improve Emirate’s financial services.
It is equipped to offer many benefits, including:
- Security and stability due to fiat support (via dirham)
- Traceable and transparent transactions through blockchain technology
- Domestic transfers making financial transactions faster and more efficiently than traditional banking methods
- dApp compatibility so that UAE citizens can easily participate in DeFi activities
The stablecoin’s roadmap includes forming alliances with payment gateways and financial institutions increase the widespread adoption of cryptocurrencies in the UAE.
Additionally, plans are reportedly being worked on quotations on major stock exchanges for hassle-free access to AE coins.
As the first-ever stablecoin regulated by the Central Bank of the United Arab Emirates, AE Coin will revolutionize the digital currency landscape by providing users with an unrivaled combination of financial freedom, unwavering stability and the highest level of security.Ramez Rafeek, CEO of AED Stablecoin
7 unlicensed cryptocurrency entities in Dubai faced heavy fines
Despite the recently introduced Virtual Assets Regulatory Authority (VARA) in Dubai. imposing fines on seven unlicensed cryptocurrency companies (from $13,000 to $27,000 each) The United Arab Emirates is increasingly increasing its acceptance of cryptocurrencies.
VARA’s regulatory framework is stringentrequiring virtual resource providers maintain legal personality in the Emirates AND reserve assets corresponding to 100%. People violating marketing regulations are subject to penalties.
The purpose of VARA is to collect fees from non-compliant crypto companies protect people from people offering illegal cryptographic services. The Office ensures transparency and security for investors.
Our priority is to ensure that Dubai’s virtual asset ecosystem remains safe for consumers and investors, while at the same time being a progressive environment for compliant entities.VARA Regulatory and Enforcement Affairs
Verdict – The cryptocurrency landscape in the Middle East looks promising
Thanks to safe and innovative developments that are in preparation improve the financial landscape of the Middle EastThe Emirates’ cryptocurrency future appears to be booming.
Meanwhile, the fines imposed on VARA underscore The UAE’s commitment to protecting the credibility of the crypto space and its users.
As stablecoin issuance expands around the world, this type of digital currency is becoming more and more popular predicted to happen main payment method worldwide. The United Arab Emirates is following this trend.
Reference
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