UAE businesses could soon accept AE Coin, the first regulated cryptocurrency in the Emirates, following its recent approval by the Central Bank of the UAE. Pegged to the dirham, AE Coin is classified as a stablecoin, offering greater stability compared to other cryptocurrencies.
Built on Blockchain Technology
Designed to ensure stability, efficiency, and security, AE Coin operates on blockchain technology. Ramez Rafeek, AE Coin’s General Manager, shared the news of its approval through a LinkedIn post, and in an interview with The National, he confirmed that the coin would be available soon.
Stable and Secure Transactions
AE Coin is fully backed by reserves held within the UAE, ensuring consistent value and minimizing price volatility. This makes it a trusted medium of exchange for businesses and consumers.
UAE’s Updated Crypto Regulations
The launch of AE Coin follows the Central Bank’s updated cryptocurrency regulations from July, which allow dirham-backed stablecoins like AE Coin while excluding other digital assets such as Bitcoin or dollar-pegged stablecoins for payments within the country. Financial free zones are exempt from this regulation.
Regulatory Scrutiny for Crypto Businesses
UAE crypto businesses will now need to submit a white paper to the Central Bank and gain approval before issuing a payment token. This regulation ensures a robust approval process to assess the security of the tokens.
AE Coin’s Role in the Global Stablecoin Market
The stablecoin market, valued at over $207.5 billion globally, has prominent players like Tether and Binance USD. Tether, with a market cap of $138 billion, is also planning to launch its own dirham-pegged stablecoin in the UAE.
AE Coin aims to facilitate faster, more cost-effective transactions while building trust in digital currencies, contributing to the growing adoption of stablecoins.
