AE Coin, the first regulated stablecoin in the UAE pegged to the local dirham currency, has received the final licence from the Central Bank of the UAE and is scheduled for the soon-to-come launch.
As reported by local media, AE Coin has got the final green light to enter the digital currency market of the UAE. It will be soon available to customers via appointed agents.
In October, the stablecoin issuer – AED Stablecoin LLC – secured in-principle approval for the launch. The new cryptocurrency offers fast, low-cost transactions in a secure payment environment regulated by the Central Bank of the UAE. By design, AE Coin is multi-purpose and can be used for B2B payments between companies, individual transactions, and investments. The stablecoin issuer also aims to collaborate with e-commerce platforms, mobile wallets, and merchant partnerships, to streamline users’ everyday transaction experience with innovation.
AE Coin is also expected to list on major crypto exchanges, competing with global stablecoin giants like Tether and USDC while leveraging the trust provided by its regulatory backing.
This development is part of the UAE’s Payment Token Services Regulation framework, which ensures AE Coin is fully backed by cash reserves held locally. The initiative aligns with the UAE’s broader digital transformation goals, aiming to boost the economy and make transactions faster and more efficient. Additionally, AE Coin could strengthen the UAE’s role as a global hub for blockchain and digital finance.
The United Arab Emirates has been long overt regarding its interest in crypto. UAE’s Minister even said crypto would play a major role in the UAE’s global trade development.
However, under the new UAE crypto regulations introduced in July, only dirham-backed stablecoins can be used as a means of payment for goods and services within the Emirates. This excludes other cryptocurrencies like Bitcoin, Ether, and US dollar-backed stablecoins such as Tether and Binance USD from being accepted for such transactions, though financial-free zones in the UAE are exempt from these restrictions.
