According to the new Payment Token Services Regulation, the UAE Central Bank will monitor payment tokens and set rules for licensing and registration of companies that provide digital payment services.
In addition, the Central Bank may designate any virtual asset to be a payment token if it determines that to do so is necessary to achieve its statutory objectives (Article 12, paragraph 6).
Algorithmic stablecoins and privacy tokens must be linked to a stable exchange rate, in particular, payment tokens in Dirhams or payment tokens in any other government-backed foreign currency (fiat currency). Promotion and acceptance of foreign payment tokens shall also be subject to restrictions.
In the event of a violation of the Regulation, the Central Bank shall take all measures and actions it deems appropriate. For example, the Central Bank can appoint a manager to control a company. Moreover, the Regulation provides for the liability of a digital asset holder company in case of loss of assets, specifically partial or full return of payment tokens.
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