Global Stablecoin Regulation
On the UAE mainland, retail payments are permitted only with CBUAE-approved Payment Tokens (fiat-referenced stablecoins), notably Dirham Payment Tokens (DPTs). Use of other crypto for general merchant checkout is prohibited. Foreign Payment Tokens (FPTs) are limited to narrow use-cases (e.g., paying for virtual assets). The Central Bank’s Payment Token Services Regulation (PTSR) is in force; Dubai’s VARA regulates virtual-asset activity in Dubai (ex-DIFC) and defers AED-referenced FRVAs to CBUAE. ADGM/FSRA finalized its expanded FRT regime (custody, intermediation, and acceptance of fiat-referenced tokens) effective January 1, 2026. In early 2026, CBUAE approved RAKBANK to issue an AED-backed stablecoin (in-principle, January 7) and registered USDU — issued by Universal Digital — as an approved Foreign Payment Token (January 29).
Legal Status
Legal with restrictions
Regularity Clarity
5/5
Regime Status
In-Force
Allowed Types
Fiat Referenced
Classification
Payment Instrument
UAE law classifies stablecoins as “Payment Tokens” under CBUAE regulation – digital representations of fiat currency used for payment and settlement, distinct from securities or commodities.
Regulatory Authorities
Central Bank of the UAE (CBUAE)
Issues Payment Token Services Regulation; licenses dirham-backed stablecoins and supervises payment-token service providers.
Virtual Assets Regulatory Authority (VARA) – Dubai
Regulates virtual-asset service providers in Dubai (excluding DIFC); oversees issuance and trading of fiat-referenced virtual assets.
Consumer Protection
Reserve Requirements
Issuers must maintain a Reserve of Assets per token category and comply with management/safekeeping obligations.
Auditing
Whitepaper and disclosure duties; ongoing risk, tech-security, and governance obligations; CBUAE may impose additional reporting.
Redemption Rights
Par-value redemption upon token-holder request; fees must be proportionate.
