Bank

2024

The Central Bank of the UAE (CBUAE) has issued the Sandbox Conditions Regulation, which aims to attract start-ups and global fintech businesses and create an attractive environment for the financial sector that supports creativity and innovation within a regulatory and supervisory framework. 
Also Read: <a class="editor-rtfLink" href="https://www.cryptopolitan.com/uae-central-bank-piloting-cbdc-with-uae-commercial-banks-and-payment-processors/" target="_blank" rel="noopener">UAE Central Bank piloting CBDC with UAE Commercial Banks and payment processors</a> 
This includes Fintech institutions adopting enabling technologies such as Blockchain, DLT, AI, machine learning, and others. 
The <a class="editor-rtfLink" href="https://rulebook.centralbank.ae/en/rulebook/guidelines-financial-institutions-adopting-enabling-technologies" target="_blank" rel="noopener nofollow">regulation</a>, published in UAE’s official Gazette, has come into effect and includes guidelines for Financial Institutions Adopting Enabling Technologies such as DLT and blockchain. In the rule book, DLT is defined as processes and related technologies that enable Nodes in a network (or arrangement) to securely propose, validate, agree, and record state changes (or updates) to a synchronized ledger that is distributed across the network’s Nodes. 
<h2 class="wp-block-heading" id="span-style-font-weight-400-uae-supports-economic-growth-span">UAE supports economic growth</h2> 
The sandbox regulation will also consolidate the financial sector’s competitiveness and support the UAE’s economic growth. The Regulation outlines specific conditions that must be met by participants, including start-ups, fintech, and established businesses that are looking to deliver innovative solutions and services within the financial services sector in a regulatory and supervisory framework. 
It also outlines the criteria for exempting them from the requirement of obtaining a license, allowing them to test innovative business models, products, and services within a specified duration, provided that they constantly comply with the regulatory obligations to ensure the best outcomes for all stakeholders. 
Also read <a class="editor-rtfLink" href="https://www.cryptopolitan.com/uae-central-bank-approves-issuance-of-stablecoin-regulation/" target="_blank" rel="noopener">UAE Central Bank approves issuance of stablecoin regulation</a> 
As per the press <a class="editor-rtfLink" href="https://www.centralbank.ae/en/news-and-publications/news-and-insights/" target="_blank" rel="noopener nofollow">release</a>, these conditions allow the CBUAE to proactively and effectively assess and respond to these innovations as part of its supervisory activities and enable participants to understand how best to structure their respective businesses in a regulatory-compliant manner. 
In addition, applicants are required to present technologically innovative financial products, services, solutions, or business models that benefit customers. Participants must demonstrate an intention to deploy the proposed service on a broader scale in the UAE after exiting the Regulatory Sandbox. 
H.E. Khaled Mohamed Balama, Governor of the CBUAE, said: 
<blockquote> 
 “The issuance of the Sandbox Conditions Regulation is a testament to the UAE’s keenness towards enabling innovation […]. We are encouraging innovators to contribute positively to the wider economy…” 
</blockquote> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 The <a href="https://twitter.com/hashtag/CentralBankUAE?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#CentralBankUAE</a> has issued the Sandbox Conditions Regulation, which aims to attract start-ups and global fintech businesses and create an attractive environment for financial sector that supports creativity and innovation within a regulatory and supervisory framework. It will…— Central Bank of the UAE (@centralbankuae) <a href="https://twitter.com/centralbankuae/status/1805543834115350881?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">June 25, 2024</a>
</blockquote> 
<h2 class="wp-block-heading" id="span-style-font-weight-400-uae-central-bank-supports-cbdc-and-stablecoins-span">UAE central bank supports CBDC and stablecoins</h2> 
This announcement comes weeks after the Central Bank of the UAE announced its plans to initiate phase two of its domestic CBDC payments after the success of the mBridge minimum viable product phase. mBridge is a multi-central bank digital currency (CBDC) common platform for wholesale cross-border payments and settlement. 
Also Read: <a href="https://www.cryptopolitan.com/laser-digital-receives-second-license-in-uae/">Laser Digital receives second crypto broker license in UAE</a> 
CBUAE is planning for Phase 2 implementation, which includes domestic CBDC payments and further enhancements of cross-border fund transfers. The UAE central bank anticipates the growth in usage of the mBridge platform for cross-border payments. 
In addition, the UAE Central Bank recently approved the issuance of a regulation for licensing and overseeing stablecoins and a series of policies aimed at supporting the banking, insurance, and financial services sectors. 
Cryptopolitan reporting by Lara Abdul Malak

UAE central bank launches fintech sandbox including DLT and blockchain

İçindekiler

Cryptopolitan_News

25 Haz 2024 tarihli diğer yazılar

ICP Portugal’s ‘Build on ICP’ Hackathon is back with Powerful Partnership

UAE Central Bank Releases Official Payment Token (Stablecoin) Services Regulation

NapulETH: The Premier Web3 Event in Southern Italy

Hot New Airdrops for Immediate Action

MoonBag Skyrockets Beyond $2.9M, Beats Pepe Coin and Tron as the Top Meme Coin Presale

SANDEEP NAILWAL-BACKED NAILWAL FELLOWSHIP OPENS APPLICATIONS FOR 2024 COHORT

Güncel kripto para haberleri için ücretsiz bültenimize abone olun!