New rules of the UAE Central Bank prohibit the use of cryptocurrencies to pay for goods and services. Moreover, they threaten with penalties for such operations.#Cointelegraphwrites about this, citing an analysis of the new rules by cryptocurrency and blockchain lawyer Irina Khiver.
The rules for servicing payment tokens for the supervision and licensing of stablecoins were approved on June 5, at the Board of Directors of the Central Bank of the UAE (CBUAE). They “prohibit the acceptance of cryptocurrencies for goods and services unless they are licensed dirham payment tokens or registered foreign payment tokens.” BUT none of them currently exist.
Foreign currency-pegged stablecoins in the UAE will now only be allowed to be used to purchase other virtual assets.
Heaver expressed concern about the new rules' consistency with the country's economic principles and their impact on foreign investment.
The lawyer also believes that Tether's stablecoin, USDT, was the "transaction backbone" of Web3 and crypto. As the UAE seeks to develop this sector, Hiver believes that the new rules threaten its progress in this area by prohibiting the use of stablecoins in transactions:
“This policy shift may signal a less favorable environment for the crypto industry, which is not good for the UAE’s image or its ambitions in the digital economy.”
Hiver also emphasized that since there are no industry associations in the UAE, such as the Crypto Valley Association in Switzerland, there is no one in the country to protect the industry from the new rules.