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Onshore conduct and safeguarding flow from the SVF Regulation and RPSCS Regulation, supervised by the CBUAE Consumer Protection function. SVF licensees must protect customer float (segregation / additional capital floor mechanisms), maintain an Additional Capital Float buffer of at least 5% of total customer float, and meet fit-and-proper, residency, risk-management and AML/CFT obligations. Conduct standards include standardized pre-contractual disclosure (Key Facts Statements), fee-change notice rules and complaint-handling, with the Sanadak ombudsman as external escalation.
Conduct, Safeguarding & Financial Promotions
The CBUAE's Payment Token Services Regulation embeds a clear safeguarding design choice: Dirham Payment Tokens must be fully fiat-reserve backed, while algorithmic stablecoins and privacy tokens are prohibited outright under the framework. This is a monetary-integrity-driven conduct requirement rather than a general restriction on stablecoin product design, and it positions the UAE's approach as comparatively conservative relative to jurisdictions that permit algorithmic stabilisation mechanisms or under-collateralised structures.
A further conduct-relevant development this cycle is the designation of all PTSR Licensees and Registrants as AML Obligors under UAE law. This designation sits at the intersection of conduct and financial-crime compliance; the underlying AML/CFT-regime analysis of what this designation requires in practice is rendered separately by this brief's subscribed financial-crime coverage, and this module carries the designation as a surface fact relevant to the conduct obligations PTSR entities face rather than duplicating that analysis.
Taken together, the full-reserve-backing requirement, the algorithmic-stablecoin prohibition, and the AML Obligor designation form a coherent conduct-and-safeguarding package: PTSR entities face both product-design constraints intended to protect token holders and monetary integrity, and status-based compliance obligations intended to protect the broader financial system.
Outlook
Watch for any enforcement action testing the reserve-backing and algorithmic-stablecoin-prohibition requirements as more AED-pegged stablecoins move through the operational-phase pipeline, and for how the AML Obligor designation interacts with the broader UAE AML/CFT guidance tightening tracked elsewhere this cycle.
Sources and findings (4)
- T1https://rulebook.centralbank.ae/en/rulebook/stored-value-facilitiesretrieved
- T3https://www.cryptoverselawyers.io/central-bank-uae-stored-value-facilities-regulation/retrieved
- T3https://bank-uae.com/uae-banks-customer-rights/retrieved
- T1https://rulebook.centralbank.ae/en/rulebook/article-13-technology-risk-and-information-securityretrieved