#AbuDhabiStablecoin AbuDhabiStablecoin Regulatory Framework for Stablecoins in Abu Dhabi**

- **ADGM’s Enhanced Crypto Asset Guidance**: The Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) updated its crypto regulations in 2024, classifying **fiat-backed stablecoins** (e.g., dirham-pegged tokens) as digital representations of money. These tokens are now regulated under **Money Transmission Services**, requiring licensing for issuers, custodians, and exchanges .

- **Central Bank of UAE (CBUAE) Licensing**: The CBUAE approved a **dirham-only stablecoin regime** in June 2024, mandating that payment tokens must be 100% backed by AED and prohibiting links to other currencies or algorithms. Merchants can only accept licensed AED-backed stablecoins.