According to BlockBeats, recent regulations released in the United Arab Emirates (UAE) could potentially impose restrictions on cryptocurrency payments, as per the views of blockchain legal expert Irina Heaver. On June 5, the Central Bank of the UAE (CBUAE) board discussed the Financial Infrastructure (FIT) plan and approved regulations for payment token services. These new rules suggest that UAE's payment tokens must be backed by Dirham and cannot be pegged to any other currency.
Heaver interprets these new regulations as essentially prohibiting the use of cryptocurrencies for the payment of goods and services, unless they are authorized Dirham payment tokens or registered foreign payment tokens. However, neither of these tokens currently exist. She believes this is inconsistent with the UAE's consistent policy stance of supporting business and investment, and it could negatively impact the attraction of foreign investment.
Heaver also mentioned that the new regulations could hinder the development of areas such as Web3 and crypto trading, where USDT serves as a cornerstone. This could damage the UAE's image and goals in the digital economy sector. She further pointed out that the UAE lacks industry representative bodies like the Swiss Crypto Valley Association, putting the country's Web3 and crypto industry at a disadvantage when facing unfavorable policies.
