According to ChainCatcher, according to Cointelegraph, crypto industry lawyer Irina Heaver believes that the United Arab Emirates (UAE) recently issued regulations may ban cryptocurrency payments in the country. On June 5, the board of directors of the UAE Central Bank discussed projects under the country's Financial Infrastructure (FIT) program, an initiative to promote digital transformation. At the meeting, the board approved the release of payment token service regulations to regulate and license stablecoins. The new guidelines suggest that the country's payment tokens must be backed by the UAE dirham and cannot be pegged to other currencies.
Heaver pointed out that the new regulations essentially prohibit the use of cryptocurrencies for payments within the UAE unless they are licensed dirham payment tokens or registered foreign payment tokens, neither of which currently exist. She believes that this move contradicts the UAE's pro-business and investment stance and is concerned that the new regulations will hinder the country's progress in the Web3 and cryptocurrency fields.
