Circular No. 2 of 2024 On Payment Token Services Regulation

To: Providers of Payment Token Services in the United Arab Emirates 

Subject: Payment Token Services Regulation

Introduction

This Regulation (the ‘Payment Token Services Regulation’) lays down the rules and conditions established by the Central Bank for granting a License or Registration for the provision of Payment Token Services and related matters. Payment Token Services are digital payment services in the UAE and comprise three categories, namely Payment Token Issuance, Payment Token Conversion and Payment Token Custody and Transfer.

Providing digital money services is a financial activity subject to Central Bank licensing and supervision in accordance with the provisions of the Central Bank Law. Accordingly, the Central Bank Law provides the statutory basis for the powers of the Central Bank in relation to the licensing and ongoing supervision of Licensed Payment Token Service Providers, and related matters.

Part 1

Scope and Objectives

This Regulation sets out: 

• conditions for the grant and maintenance of a License or Registration for the provision of Payment Token Services;

• rights and obligations of Customers, L...