Crypto and blockchain lawyer Irina Heaver has expressed concerns about newly-released regulations in the United Arab Emirates (UAE), suggesting that they may effectively ban crypto payments within the country. The Central Bank of the UAE recently approved payment token services regulations as part of its financial infrastructure program, which aims to promote digital transformation. These guidelines require payment tokens in the country to be backed by UAE dirhams and prohibit their linkage to other currencies.
Heaver believes that these regulations pose a challenge to the country’s pro-commerce and pro-investment stance. She also expressed worries about the impact on foreign investment and the contradiction with the UAE’s economic principles. Additionally, she highlighted the significance of stablecoins, particularly Tether (USDT), in Web3 and crypto transactions. With the UAE aiming to develop its crypto sector, Heaver believes that the new rules hinder progress by restricting the use of stablecoins.
Furthermore, Heaver noted that the UAE lacks industry associations like the Crypto Valley Association in Switzerland, which has successfully advocated against unfavorable regulations. She emphasized the importance of having representation to counter policies that may impede the growth of Web3 and crypto in the UAE.
In summary, Irina Heaver, a crypto and blockchain lawyer, has raised concerns about the newly-introduced regulations in the UAE, suggesting that they may effectively ban crypto payments within the country. She believes these rules contradict the UAE’s pro-commerce stance and hinder the growth of the crypto industry. Additionally, Heaver highlighted the need for industry representation to counter potentially detrimental policies.