On 20 August 2024, the Financial Services Regulatory Authority (the FSRA), the financial services regulator in the Abu Dhabi Global Market, published Consultation Paper No. 7 of 2024 (CP7) on a proposed regulatory framework for the issuance of stablecoins that are backed by a fiat currency, or what CP7 refers to as “Fiat-Referenced Tokens”.
The FSRA’s proposed rules come at a time where key players in the stablecoin industry are showing a strong interest in the UAE. The purpose of this briefing note is to provide a high-level overview of the FSRA’s proposed rules and address some key questions often raised by prospective issuers.