CBUAE Payment Token Services Licence
The Central Bank of the UAE (CBUAE) regulates payment tokens (stablecoins used for payments) under its Payment Token Services Regulation, which applies across the UAE outside the DIFC and ADGM, including non-financial free zones such as DMCC. It covers payment token issuing, conversion, and custody and transfer. Only CBUAE-licensed dirham payment tokens may be used to pay for goods and services in the UAE. Under Federal Decree-Law No. 6 of 2025, the CBUAE also licenses payment services using virtual assets, including when they are delivered through DeFi or other technology.
Who needs this licence?
- Issuers of dirham-backed stablecoins
- Businesses converting, holding or transferring payment tokens for clients
- Payment service providers processing payment-token payments for merchants
- Merchants that want to accept stablecoins (limited to licensed dirham payment tokens)
- Platforms integrating stablecoin payment rails
Payment token services
Payment token issuing
Issuing fiat-backed payment tokens, with reserve and redemption requirements.
Payment token conversion
Converting payment tokens to and from fiat or other tokens for clients.
Payment token custody and transfer
Holding payment tokens for clients and moving them between parties.
Use of foreign payment tokens
Foreign-currency payment tokens may be used only if issued by a CBUAE-registered foreign issuer, and then only to buy virtual assets or virtual asset derivatives. They cannot be used to pay for goods and services.
Key requirements
- Licensing or registration with the CBUAE for the relevant payment token service
- Reserve assets, segregation and redemption arrangements for issuers
- AML/CFT, sanctions and Travel Rule compliance
- Governance, risk management and internal controls
- Technology and cybersecurity resilience
- Consumer protection and disclosure
The licensing process
- 1
Classify your token and service
Determine whether your activity involves payment tokens, virtual assets or both, and which regulators apply.
- 2
Prepare framework
Governance, reserve, AML/CFT and technology documentation.
- 3
Engage the CBUAE
Submit the application and supporting materials.
- 4
Approval and launch
Meet conditions, then operate under CBUAE supervision.
How VAF Global helps
We prepare and run the compliance side of your licence, so your application meets the regulator's expectations from day one.
- Token and activity classification across CBUAE, VARA and CMA
- AML/CFT, sanctions and Travel Rule programmes
- Risk assessments and governance documentation
- Ongoing compliance and MLRO support
- KYT monitoring of stablecoin flows
CBUAE Payment Token Licence: FAQ
Can I accept USDT or USDC payments in the UAE?
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Generally no, not as payment for goods or services. Outside the DIFC and ADGM, merchants may accept only dirham payment tokens issued by a CBUAE-licensed issuer. Foreign-currency stablecoins may be used only to buy virtual assets, and only if the issuer is registered with the CBUAE.
Does a stablecoin business also need a VARA licence?
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It can. Payment token activities fall under the CBUAE, while virtual asset activities in Dubai fall under VARA. Many businesses need to consider both.
Other UAE licensing guides
Last reviewed October 2026. This guide is general information for compliance planning, not legal advice. Regulatory requirements change; always confirm current rules with the regulator. VAF Global is a compliance consultancy and does not provide legal services.