Virtually Everything | Series 3, Episode 4 | Navigating Payment Tokens

In this episode of Virtually Everything, Lucy Nash and Vyasna Mahadevey return with Senior Associate Barkha Doshi to conclude their two-part special on digital payments. Following their introduction to open finance in the previous episode, the team now turns to the UAE’s new Payment Token Services Regulation, published by the Central Bank in mid-2024.

Barkha outlines how the regulation targets dirham-backed stablecoins—designed to maintain a fixed value—and sets licensing requirements for those issuing, storing, transferring or converting these tokens. The aim is to provide consumers with safe, transparent and secure digital payment options while supporting innovation in the crypto space.

The discussion also clarifies key terminology in the virtual asset sector, distinguishing between cryptocurrencies and payment tokens, and explains the rationale behind prohibiting algorithmic and privacy tokens. These measures are intended to reduce risk and enhance trust in digital payment methods.

A key highlight is the focus on consumer protection. The regulation ensures licensed providers implement clear consent mechanisms, strong security controls and anti-money laundering safeguards, giving users confidence when using crypto for everyday transactions in the UAE.

With the focus being on demystifying the Payement Token Services Regulation, the episode concludes with a reflection on the significance of the UAE’s regulatory progress in the digital payments space, and emphasises how these developments signal a maturing fintech environment in the region. With greater clarity, stronger safeguards, and a clear licensing framework now in place, the discussion leaves listeners with a sense of confidence in the UAE’s direction—and a reminder that regulated crypto payments are no longer a distant future, but an emerging reality.

This podcast forms part of the Virtually Everything podcast series. To find out more about the topics discussed in the series, please visit our dedicated Digital Assets and Blockchain page.