Regulator: Central Bank of the UAE (CBUAE); Virtual Assets Regulatory Authority (VARA) in Dubai; the ADGM Financial Services Regulatory Authority (FSRA) in Abu Dhabi
Licensed issuers must maintain full fiat-currency reserves (100% or 50% plus UAE government bonds for subsidiary issuers), conduct monthly external audits, publish White Papers, and redeem at par on demand. Only Dirham-denominated and Foreign Currency Payment Tokens are permitted; algorithmic and privacy tokens are banned entirely. Oversight is split: the Virtual Assets Regulatory Authority (VARA) in Dubai, the ADGM Financial Services Regulatory Authority in Abu Dhabi, and the Central Bank for payments and monetary issues. Stablecoins are allowed but subject to strict licensing, reserve, and transparency rules.
Applicable Laws:
Guidance on Regulation of Virtual Asset Activities in ADGM (Updated 2025) - https://en.adgm.thomsonreuters.com/rulebook/guidance-regulation-digital-securities-activities-adgm-24-february-2020
Law No. (4) of 2022 - VARA - https://dlp.dubai.gov.ae/Legislation%20Reference/2022/Law%20No.%20(4)%20of%202022%20Regulating%20Virtual%20Assets.html
Central Bank of the UAE - Stored Value Facilities Regulation - https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation
