The AE coin was developed in accordance with the CBUAE (Central Bank of the UAE) digital payment token services regulatory framework and is in consonance with the forward-looking vision of the country’s government.
The coin is now poised to boost the financial services landscape by offering an innovative, secure, fast, stable, low-cost, and efficient payment experience,
On Tuesday, December 10, 2024, the Abu Dhabi-based coin got its final license to launch, according to a disclosure made by its developers at the Abu Dhabi Finance Week.
This final licensing in December 2024 comes after initial in-principle approval in October.
A New Standard For Trust, Security And Innovation
According to Ramez Rafeek, General Manager of AE Coin,
AE Coin harnesses the speed and efficiency of blockchain technology, offering instant, secure, and cost-effective transactions. It simplifies transfers, making them faster and more seamless. In a rapidly evolving digital world, AE Coin sets a new standard for trust, security, and innovation in digital currency.
Rafeek further disclosed that the coin will reach customers through agents chosen by the AE Coin facilitators.
He also notes that the coin is “fully backed by reserves held in the UAE. This ensures consistent value and eliminates the risk of price volatility, making it a trusted medium of exchange.”
Stablecoins are considered supporters of the UAE’s digital economy strategy and reflect the country’s leading role in the innovation of the finance industry, Rafeek said.
It demonstrates the country’s leadership in blockchain technology and digital assets. The UAE is setting the standard for other GCC nations, establishing itself as a hub for advanced financial technologies.
New Crypto Law Restricts The Use Of USDT, BTC, ETH, And Others
The latest provision in the UAE central bank’s regulatory framework will come into force next year. It is expected to offer more clarity and stimulate mainstream recognition of decentralized assets in the country.
Effective August of this year, the new crypto regulation seeks to mandate merchants and service providers in the country to accept only dirham-backed stablecoins for goods and services.
This new law implies that other digital assets, including Bitcoin and Ether, the world’s top cryptos by market cap, as well as US dollar-backed stablecoins such as USDT and Binance USD, will no longer be eligible for such payments within the UAE.
However, the regulation will not apply to financial-free zones.
Earlier on June 3, the Dubai Financial Services Authority (DFSA) amended its crypto token regulations to improve the regulatory environment for crypto tokens within its special economic zone.
Prior to the regulatory changes, those applying for token recognition were charged an application fee of $10,000 for each token.
Many considered the charge very high, especially for those looking to obtain recognition for multiple tokens. In addition, the entire recognition process was considered an “unnecessary burden.”
Based on these stakeholder opinions, the DFSA subsequently reduced the recognition fee by half.
