The UAE's Central Bank has taken a significant step by granting initial approval to AED Stablecoin, setting it up to potentially be the first officially regulated dirham-pegged stablecoin in the region.
This move comes amid recent licensing rules that limit crypto payments, except for approved dirham-backed tokens, alleviating concerns about possible restrictions.
If fully licensed, AED Stablecoin’s AE Coin could be used for crypto trading and merchant payments, paving the way for broader digital currency use in the UAE.
The central bank’s framework favors stablecoins backed by cash reserves, excluding algorithmic and privacy-focused tokens. Issuers must either hold all reserves in dirhams or split them between cash and short-term government securities.
As the competition heats up, Tether has announced plans for its own dirham-backed stablecoin through local partnerships, while the UAE continues to attract global crypto firms.
Recent developments include OKX launching a local trading platform and M2 offering direct dirham-to-crypto conversions.
Switzerland is gearing up to begin automatic crypto asset data sharing with over 70 countries, including all EU member states and the UK, as part of a broader push toward international tax transparency.
As the European Union prepares for its next phase of crypto oversight, regulators are turning their attention to decentralized finance (DeFi)—without a clear definition of what decentralization actually means.
In a bold move to reshape the future of ApeCoin, Yuga Labs has introduced a proposal that would dissolve the existing ApeCoin DAO and replace it with a streamlined management body called ApeCo.
In a surprising shift, Russia has shelved plans to widen its crackdown on crypto mining, choosing economic stability over stricter energy controls.