Minjoosong
New UAE central bank regulations could effectively prohibit cryptocurrency payments, according to crypto lawyer Irina Heaver. The rules, part of the country's financial infrastructure transformation program, require payment tokens to be backed by UAE dirhams and not linked to other currencies.
Heaver warns this may contradict UAE's traditionally liberal economic policies and impact foreign investment. She notes that stablecoins like Tether have been crucial for Web3 transactions, and restricting their use could hinder the UAE's digital economy ambitions.
The lawyer also highlights the lack of strong industry representation in the UAE, unlike in countries such as Switzerland. This absence of a unified voice makes it challenging to counter potentially detrimental policies.
These developments raise questions about the UAE's future stance on cryptocurrencies and its impact on the country's goals in the digital asset space.
