Crypto Lawyer: New UAE Regulations May Ban Crypto Payments

Irina Heaver, a crypto industry lawyer, believes that recently released regulations in the United Arab Emirates (UAE) may ban cryptocurrency payments in the country. On June 5, the board of directors of the UAE Central Bank discussed projects under the country's Financial Infrastructure (FIT) program, an initiative aimed at promoting digital transformation. At the meeting, the board approved the issuance of the Payment Token Services Regulations to regulate and license stablecoins. The new guidelines suggest that payment tokens in the country must be backed by the UAE dirham and cannot be pegged to other currencies. Heaver pointed out that the new regulations essentially ban the use of cryptocurrencies for payments within the UAE unless they are licensed dirham payment tokens or registered foreign payment tokens, neither of which currently exist. (Cointelegraph)