UAE Central Bank: We do not approve of dealing in cryptocurrencies at this time

The UAE Central Bank announced that it does not, at present, accept or acknowledge encrypted or virtual assets as legal cash that excuses liability in the UAE.

According to Arabiya Net, the Central Bank affirmed that the UAE dirham is the only legal currency that has the power of absolute discharge in the country.

The statement of the UAE Central Bank came in response to some of what he described as allegations that the bank implicitly legalized cryptocurrencies in the UAE, explaining at the same time the goal From the recently released Stored Values ​​Facility.

The bank recently released the Stored Values ​​Facility System and is now in the process of issuing a retail payment services system that will define the organizational treatment of crypto assets, according to the UAE News Agency and WAM.

In this context, the UAE Central Bank said that the Stored Values ​​Facility System aims to license institutions that issue or provide stored value facilities in the UAE.

He added: As defined in the system, the stored values ​​facilities are facilities whereby an amount of money or the value of money is accepted, which may include, among other elements, Crypto or virtual assets, in exchange for storing the value of that money.

and continued: Since the Central Bank of the Emirates does not currently recognize encrypted assets as legal cash that excuses liability in the United Arab Emirates, it does not recognize these assets as a method of payment and cannot be used. Except as an investment asset with a potentially high risk.

retail payment services system

The Central Bank said that it is currently preparing a new system called the Retail Payment Services System, which will incorporate the concept of payment tokens defined as crypto assets, backed by a cash currency and used for purposes. Payment.

With the issuance of the new Stored Values ​​Facility System, the Central Bank of the Emirates aims to facilitate the entry of Fintech financial technology institutions and non-bank payment service providers into the UAE market, while continuing to Protecting clients' funds, ensuring proper functioning, and supporting the development of payment products and services.

and the Central Bank included major improvements in the new version of the stored value facility system compared to the previous version, including: allowing non-bank payment service providers to obtain a license without the need to jointly establish a company With a licensed bank, and where ...