The UAE Emerges as a Global Crypto Hub with New DAO and Stablecoin Regulations
Login

The UAE Emerges as a Global Crypto Hub with New DAO and Stablecoin Regulations

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more



The United Arab Emirates (UAE) is quickly becoming a major player in the world of cryptocurrencies and blockchain technology. Recent developments in the country’s regulatory landscape are paving the way for increased adoption and innovation in the crypto space.

One of the most significant advancements is the introduction of a legal framework for Decentralized Autonomous Organizations (DAOs) by the Ras Al Khaimah Digital Assets Oasis (RAK DAO). This new system aims to clarify how DAOs can operate legally within the country.

The DAO framework includes the establishment of a legal structure for DAOs, clarification of tax obligations and benefits, and the ability for DAOs to own both on-chain and off-chain assets. It also provides legal protection for DAO founders, members, and contributors, as well as guidelines for resolving disputes. 

The framework is set to be discussed at the DAO Legal Clinic on October 25, 2024.

Irina Heaver, a partner at NeosLegal, believes this move will greatly impact decentralized governance and the broader Web3 ecosystem in the UAE. She noted that DAOs can be registered remotely, making it easier for global participants to engage with the UAE’s growing virtual assets sector.

The Stablecoin Landscape in the UAE

In addition to the DAO framework, the UAE is making strides in the stablecoin space. The Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval to AED Stablecoin under its Payment Token Service Regulation framework. This approval positions AED Stablecoin as a frontrunner to become the first issuer of a regulated dirham-pegged stablecoin in the UAE.

The central bank’s licensing framework favors fully cash-backed assets and requires issuers to back their stablecoins with cash in a separate escrow fully denominated in dirhams within a UAE bank. Alternatively, they may hold at least 50% of reserve assets as cash, with the remaining portion invested in UAE government bonds and CBUAE monetary bills.

This development eases concerns about potential restrictions on crypto payments, which had arisen following the CBUAE’s recent release of its licensing framework. If fully approved, AED Stablecoin’s AE Coin could serve as a local trading pair for cryptocurrencies in exchanges and decentralized platforms, while allowing merchants to accept it for goods and services.

The UAE’s crypto-friendly regulatory environment has been attracting major players in the industry. OKX recently launched a retail and institutional trading platform in the UAE after obtaining a full license, which includes derivatives trading for qualified institutional investors. Additionally, crypto exchange M2 has opened a new system that allows residents to directly convert dirhams into Bitcoin and Ether.

Make money without lifting your fingers: Start using a world-class auto trading solution

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News