The UAE’s regulatory landscape for cryptocurrencies saw significant developments in 2024. Five regulators were established to oversee virtual asset service providers (VASPs), introducing various licensing frameworks and tax exemptions. The Central Bank of the UAE (CBUAE) regulated stablecoins through Payment Token Services Regulation, while the Abu Dhabi Global Market (ADGM) introduced a regulatory framework specifically for fiat-referenced tokens.
The Federal Tax Authority exempted cryptocurrency transactions from value-added tax (VAT). Despite this, rumors spread about the UAE potentially emulating other countries’ strategic Bitcoin reserves. However, the UAE denied these claims. Furthermore, marketing guidelines were tightened to protect consumers from fraudulent practices.
Overall, the UAE continues to establish itself as a hub for cryptocurrency regulation and innovation.
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