New regulations overhaul regulatory framework for digital payments in the UAE.
Key points:
..The new Stored Value Facilities (SVF) Regulation repeals and replaces the 2017 SVEPS Regulation governing digital payments business in the UAE, and streamlines the applicable regulatory framework.
..Among other changes, the SVF Regulation includes detailed provisions relating to the licensing process and introduces an express prohibition on the marketing of overseas Stored Value Facilities in the UAE.
..Operators of limited network, loyalty, reward, and bonus point schemes may be required to apply to CBUAE for exemption from the licensing requirement.
..Ambiguity remains regarding the ability of financial institutions licensed in the Financial Free Zones to obtain an onshore SVF Licence.
..Previous uncertainty regarding the permissibility of crypto-assets in the UAE appears to have been resolved, with Stored Value Facilities involving crypto-assets being expressly subject to the SVF Regulation.
..Firms holding an SVF licence granted under the SVEPS Regulation are permitted to continue to operate, but must ensure compliance with the requirements of the SVF Regulation within one year.
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