# United Arab Emirates: crypto and stablecoin regulation (as of 1 November 2026)

Dated status of stablecoin rules in the UAE: the CBUAE Payment Token Services Regulation, the VARA issuance rulebook for Dubai, the ADGM framework for fiat-referenced tokens and its accepted-token list, each line linked to the regulator's source.

Canonical: https://achivx.org/regulation/united-arab-emirates/
Updated: 2026-11-01
As of: 2026-11-01

This page covers three of the UAE's virtual asset regimes, each with its own scope. The Central Bank of the UAE (CBUAE) Payment Token Services Regulation (Circular 2/2024), in force from 31 August 2024, sets the rules for a licence or registration to provide Payment Token Services within the UAE or directed to persons in the UAE. The Virtual Assets Regulatory Authority (VARA) regulates the issuance of fiat-referenced virtual assets (FRVAs) in the Emirate, which its rulebook defines as all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre (DIFC). The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has its own framework for issuing fiat-referenced tokens (FRTs) in ADGM and publishes a list of accepted FRTs. Under the VARA rules, tokens that aim at a stable value against the UAE dirham (AED) remain under the sole and exclusive regulatory purview of the CBUAE.

This page states what the government sources say. It is not legal advice.

## Status as of 1 November 2026

| Status | Rule | Since / from | Source |
|---|---|---|---|
| In force | CBUAE Payment Token Services Regulation (Circular 2/2024): the rules and conditions set by the Central Bank for granting a License or Registration to provide Payment Token Services. The CBUAE rulebook shows "Effective from 31/8/2024 Status: In-Force". | 31 August 2024 | [CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation) |
| In force | CBUAE Payment Token Services Regulation, Article 2(1): no person may perform a Payment Token Service within the UAE or directed to persons in the UAE unless Licensed or Registered by the Central Bank to perform it. | 31 August 2024 | [CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation) |
| In force | CBUAE Payment Token Services Regulation, Article 2(2): no person may perform, within the UAE or directed to persons in the UAE, a service similar or equivalent to a Payment Token Service with a Means of Payment that is not a Payment Token. The ban applies to all persons, including those licensed or regulated for Virtual Asset activities by SCA (the UAE Securities & Commodities Authority) or a "Local Licensing Authority", defined in the Regulation as "any authority competent to regulate Virtual Assets in the concerned Emirate in accordance with Cabinet Resolution No. (111) of 2022". | 31 August 2024 | [CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation) |
| In force | CBUAE Payment Token Services Regulation, Article 2(3): no person may, within the UAE or directed to persons in the UAE, issue Algorithmic Stablecoins or Privacy Tokens or perform services relating to them. The ban applies to all persons, including those licensed or regulated for Virtual Asset activities by SCA or a Local Licensing Authority. | 31 August 2024 | [CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation) |
| In force | CBUAE Payment Token Services Regulation, Article 2(7): a merchant or other person in the UAE selling goods or services in the course of business may accept a Virtual Asset as payment only if it is a Dirham Payment Token issued by a Licensed Payment Token Issuer, or a Foreign Payment Token issued by a Registered Foreign Payment Token Issuer used as a Means of Payment for the purchase of a Virtual Asset or Virtual Asset derivative. | 31 August 2024 | [CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation) |
| In force | VARA Virtual Asset Issuance Rulebook, including Annex 1, the Fiat-Referenced Virtual Assets Issuance Rules (FRVA Rules); current version. Scope: the Emirate of Dubai excluding the DIFC. | 19 June 2025 | [VARA](https://rulebooks.vara.ae/rulebook/virtual-asset-issuance-rulebook), [VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf) |
| In force | VARA: issuing FRVAs is a Category 1 VA Issuance, which requires a VARA Licence. | Rulebook version of 19 June 2025 | [VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf) |
| In force | VARA FRVA Rules, rule I.B.5: FRVAs issued under the FRVA Rules may not be used as a means of payment for goods or services within the UAE. | Rulebook version of 19 June 2025 | [VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf) |
| Published | ADGM FSRA framework for the issuance of fiat-referenced tokens in ADGM; FRT issuance is a distinct Regulated Activity. The announcement does not state a commencement date. | 5 December 2024 (announced) | [ADGM](https://www.adgm.com/media/announcements/fsra-introduces-a-regulatory-framework-to-support-the-issuance-of-fiat-referenced-tokens-in-adgm) |
| Published | ADGM FSRA consolidated list of Accepted Fiat-Referenced Tokens (AFRTs) for Authorised Persons carrying on a Regulated Activity in ADGM: EURC, PYUSD, RLUSD, USD1, USDC, USDG, USDP, USDT, USDU. | 1 September 2026 | [ADGM](https://assets.adgm.com/download/assets/AFRT+List+Feb+2026.pdf/c1b34426b88e11f0912ade26907f67ec) |

## Key rules

- **CBUAE licence or registration.** Under Article 2(1) of the Payment Token Services Regulation, no person may perform any Payment Token Service within the UAE or directed to persons in the UAE unless Licensed or Registered by the Central Bank. ([CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation))
- **No look-alike services without Payment Tokens.** Article 2(2) bans services similar or equivalent to a Payment Token Service that use a Means of Payment that is not a Payment Token, for all persons, including those licensed or regulated by SCA or a "Local Licensing Authority" ("any authority competent to regulate Virtual Assets in the concerned Emirate in accordance with Cabinet Resolution No. (111) of 2022"). ([CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation))
- **Algorithmic stablecoins and privacy tokens banned.** Article 2(3): no person may, within the UAE or directed to persons in the UAE, issue Algorithmic Stablecoins or Privacy Tokens or perform services relating to them, including persons licensed or regulated by SCA or a Local Licensing Authority. ([CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation))
- **Merchant payments.** Article 2(7): merchants in the UAE may accept a Virtual Asset towards payment only if it is a Dirham Payment Token issued by a Licensed Payment Token Issuer, or a Foreign Payment Token issued by a Registered Foreign Payment Token Issuer used as a Means of Payment for the purchase of a Virtual Asset or Virtual Asset derivative. ([CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation))
- **VARA scope.** The rulebook defines the Emirate as all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre. ([VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf))
- **Licence.** Issuance of FRVAs is a Category 1 VA Issuance, and Category 1 VA Issuances require a VARA Licence. ([VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf))
- **AED-referenced tokens.** FRVA Rules, rule I.B.4: the issuance of any virtual asset that purports to maintain a stable value in relation to the AED remains under the sole and exclusive regulatory purview of the CBUAE. Entities seeking to issue such a virtual asset in the Emirate must comply with any applicable CBUAE regulation. ([VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf))
- **Use in the VA ecosystem only.** FRVA Rules, rule I.B.5: FRVAs may only be used for the purchase or sale of assets in the VA ecosystem and may not be used as a means of payment for goods or services within the UAE. ([VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf))
- **Sanctioned currencies.** FRVA Rules, rule I.B.6: VASPs may not have as a Reference Currency any currency issued by a country or territory subject to sanctions under Federal AML-CFT Laws. ([VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf))
- **Redemption at par.** FRVA Rules III.C: licensed FRVA issuers must at all times ensure that holders have a valid, legally enforceable right to redeem at par. Redemption requests from holders with valid Client Agreements must be completed within one Working Day of the request or, where trading or settlement of the Reserve Assets is subject to significant disruption events beyond the issuer's control, within one Working Day of the disruption no longer significantly affecting them. ([VARA rulebook](https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf))
- **ADGM framework components.** The FSRA framework sets requirements on the constituents of reserve assets, on detailed whitepapers and ongoing disclosures, and on FRT holders' rights to redeem FRTs at par value within defined timeframes. ([ADGM](https://www.adgm.com/media/announcements/fsra-introduces-a-regulatory-framework-to-support-the-issuance-of-fiat-referenced-tokens-in-adgm))
- **Tokens issued outside ADGM.** An FSRA consultation paper announced at Abu Dhabi Finance Week 2024 invited input on criteria for accepting non-ADGM-issued fiat-referenced tokens. ([ADGM](https://www.adgm.com/media/announcements/adgm-fsra-showcases-a-series-of-regulatory-enhancements-at-adfw))
- **Accepted FRTs.** Under COBS 17.2A.1 the FSRA accepts the listed FRTs as AFRTs for Authorised Persons carrying on a Regulated Activity in ADGM, only on the networks specified, and the list is subject to change. Inclusion on the list does not imply acceptance of that FRT for use when serving clients in jurisdictions outside ADGM. ([ADGM](https://assets.adgm.com/download/assets/AFRT+List+Feb+2026.pdf/c1b34426b88e11f0912ade26907f67ec))

## Timeline

| Date | Event | Source |
|---|---|---|
| 7 February 2023 | VARA Virtual Asset Issuance Rulebook, version 1 | [VARA](https://rulebooks.vara.ae/rulebook/virtual-asset-issuance-rulebook) |
| 19 September 2023 | VARA Virtual Asset Issuance Rulebook, version 2 | [VARA](https://rulebooks.vara.ae/rulebook/virtual-asset-issuance-rulebook) |
| 31 August 2024 | CBUAE Payment Token Services Regulation (Circular 2/2024) effective | [CBUAE](https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation) |
| 1 October 2024 | VARA Virtual Asset Issuance Rulebook, version 3 | [VARA](https://rulebooks.vara.ae/rulebook/virtual-asset-issuance-rulebook) |
| 5 December 2024 | ADGM FSRA introduces its framework for the issuance of fiat-referenced tokens, after Consultation Paper No. 7 of 2024 | [ADGM](https://www.adgm.com/media/announcements/fsra-introduces-a-regulatory-framework-to-support-the-issuance-of-fiat-referenced-tokens-in-adgm) |
| 11 December 2024 | ADGM reports that a consultation paper inviting input on accepting non-ADGM-issued FRTs was announced at Abu Dhabi Finance Week 2024 | [ADGM](https://www.adgm.com/media/announcements/adgm-fsra-showcases-a-series-of-regulatory-enhancements-at-adfw) |
| 19 June 2025 | Current VARA Virtual Asset Issuance Rulebook version effective | [VARA](https://rulebooks.vara.ae/rulebook/virtual-asset-issuance-rulebook) |
| 1 September 2026 | ADGM FSRA consolidated list of Accepted Fiat-Referenced Tokens dated | [ADGM](https://assets.adgm.com/download/assets/AFRT+List+Feb+2026.pdf/c1b34426b88e11f0912ade26907f67ec) |

## Not covered here

Only Article 2(1), (2), (3) and (7) of the CBUAE Payment Token Services Regulation are summarised here; its other provisions, other CBUAE rules on payment tokens, the CBUAE law and any transition deadlines are not covered. The ADGM rulebook texts themselves, including any later amendments to its conduct of business rules, were not read. The Dubai International Financial Centre and its regulator, the VARA Virtual Assets and Related Activities Regulations 2023, Dubai Law No. (4) of 2022, and the VARA and CBUAE public registers are not covered.

## Sources
- https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation
- https://rulebooks.vara.ae/rulebook/virtual-asset-issuance-rulebook
- https://rulebooks.vara.ae/sites/default/files/en_net_file_store/VARA_EN_293_VER20250619.pdf
- https://www.adgm.com/media/announcements/fsra-introduces-a-regulatory-framework-to-support-the-issuance-of-fiat-referenced-tokens-in-adgm
- https://www.adgm.com/media/announcements/adgm-fsra-showcases-a-series-of-regulatory-enhancements-at-adfw
- https://assets.adgm.com/download/assets/AFRT+List+Feb+2026.pdf/c1b34426b88e11f0912ade26907f67ec