The United Arab Emirates has put in place detailed stablecoin regulations, helping more people explore digital assets with greater ease and confidence. The regulators mainly focus on licensing UAE dirham backed stablecoin issuers to build trust and make crypto more accessible nationwide.
The UAE Central Bank officially rolled out the Payment Token Services Regulation (PTSR) in August 2024. Licensed entities have until June 14, 2025, to comply, allowing time to adjust operations under the new regulation. This means only licensed issuers can offer UAE dirham backed stablecoin options like Dirham Payment Tokens for making payments or transfers in the UAE. Any digital asset used for payments must meet strict rules, including how it’s issued, stored, and transferred.
Regulators introduced these steps to keep users safe and stop illegal activity. This makes stablecoin regulations more effective than ever. While the rules cover most of the UAE, they don’t apply to financial free zones like Dubai International Financial Centre-DIFC and Abu Dhabi Global Market-ADGM, which have their regulatory systems.
UAE dirham backed stablecoin set to reshape local payments
In April 2025, big names like Abu Dhabi Developmental Holding Company (ADQ), International Holding Company (IHC), and First Abu Dhabi Bank (FAB) announced plans to launch a new dirham-backed stablecoin, expected to be called AE Coin. This fully regulated UAE dirham backed stablecoin will operate under the Central Bank’s eye. It’s designed for everyday use, international trade, and even smart tech transactions through the ADI Foundation’s blockchain.
All this is part of a bigger UAE crypto regulation agreement. Authorities such as Dubai’s Virtual Assets Regulatory Authority (VARA), Abu Dhabi’s Dubai Financial Services Authority (DFSA), and the Securities and Commodities Authority (SCA) are collaborating to align their regulations. Now, any crypto company must register or get Central Bank approval before offering stablecoins or doing business. This helps create a simpler and more reliable setup for both companies and everyday users.
For anyone asking how to buy cryptocurrency in uae, things just got simpler. Thanks to the updated rules, people can now buy and use Dirham-backed tokens through licensed platforms that follow proper identity and security checks. To issue these tokens or work with foreign ones, companies need special approval from the Central Bank.
Together, the UAE crypto regulation agreement and updated stablecoin regulations are making digital finance safer. With a trusted UAE dirham backed stablecoin supported by major local institutions, more people feel confident exploring this space. It’s a big step toward the UAE becoming a leader in digital currency innovation.
