The regulation of encrypted digital currencies in many parts of the world is still vague and unclear, including our Arab region.

The Central Bank of the United Arab Emirates (CBUAE) clarified on Sunday that it has not legalized cryptocurrencies.

This appeared after the Central Bank issued the Regulations on Stored Value Facility (SVF) and Facility for Digital Payments.

And thestated The Central Bank of the UAE at the beginning of its statement:

In light of some publications claiming that the UAE Central Bank has tacitly legalized cryptocurrencies in the UAE, we would like to clarify the purpose of the recent Foreign Exchange Fund regulation.

Not accepting cryptocurrencies:

The UAE Central Bank said it does not currently accept (or recognize) crypto or virtual assets as legal tender in the UAE.

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The only legal currency in the UAE is the UAE dirham.

Since the UAE Central Bank does not currently recognize crypto assets as legal tender in the UAE, these assets are not recognized by the Central Bank as a means of payment and can only be used as investment assets with potentially high risks.

Payment services:

The UAE Central Bank said it is currently working on a regulation to regulate new retail payment services that introduce the concept of payment digital currencies, which are defined as cryptocurrencies backed by a fiat currency and used for payment purposes.

By issuing a new Foreign Exchange Fund regulation offering Stored Value Facility (SVF), the UAE Central Bank aims to facilitate the access of FinTech companies and payment service providers to the UAE market while continuing to protect client funds, ensure smooth business conduct and support product development and services. paying off.

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