General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
The Payment Token Services Regulation (PTSR) was issued by the Central Bank of the UAE (CBUAE) in June 2024 via Circular No. 2/2024 and came into effect on 6 July 2024 after a one-month publication period. The PTSR applies across the UAE excluding the DIFC and ADGM financial free zones. It establishes a licensing and registration framework for stablecoin-related services, referred to as "Payment Token Services," covering issuance, conversion, and custody/transfer of payment tokens. The regulation expressly prohibits algorithmic stablecoins and privacy tokens. Only AED-denominated stablecoins or foreign stablecoins registered with the CBUAE may be used for payments in the UAE. AE Coin became the first licensed AED stablecoin in 2024. A one-year transition period ended July 2025, after which unlicensed operators must cease payment token services.
Applies to any person performing Payment Token Services within the UAE or directed to persons in the UAE, including: (1) Payment Token Issuers — entities creating and issuing stablecoins; (2) Payment Token Conversion Providers — entities exchanging payment tokens for fiat or other tokens; (3) Payment Token Custodians and Transferors — entities safekeeping and transferring payment tokens. Applies to UAE-incorporated entities and foreign entities targeting UAE residents. Excludes DIFC and ADGM (which have their own frameworks). VARA-licensed and SCA/CMA-licensed entities must also obtain a Non-Objection Registration (NOR) from CBUAE.
Key requirements: (1) CBUAE licence required for all payment token services from July 2025. (2) Dirham Payment Token issuers must be incorporated in the UAE and obtain an Issuer Licence. (3) Foreign Payment Token issuers must register as Foreign Payment Token Service Providers. (4) Reserve requirements: full 1:1 reserve backing; reserves must be segregated and managed per CBUAE rules. (5) Prohibition on algorithmic stablecoins, privacy tokens, and in-kind issuance. (6) Payments: merchants may only accept AED-denominated tokens or CBUAE-registered foreign tokens — not unregulated cryptocurrencies. (7) AML/CFT: full compliance with UAE federal AML laws. (8) White paper approval, reserve governance, asset segregation, client funds architecture required. (9) VARA/CMA-licensed entities also need CBUAE Non-Objection Registration for payment token custody, conversion and transfer.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Large fines, licence revocation, or criminal referral risk
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.