STORED VALUE FACILITIES (SVF) REGULATIONS: CENTRAL BANK OF UAE
In a ground-breaking move to address the rapid technological advancements of stored value products and services, the Central Bank of UAE has repealed and replaced the ‘Regulatory Framework for Stored Values and Electronic Payment Systems’ (2016) to implement the ‘Stored Value Facilities (SVF) Regulations’. This regulation is aimed at ensuring the secure and efficient governance of the digital payments industry and stored value facilities.
The timing of these regulations with the publication of the Crypto-Asset Regulations by the Securities Commodities Authority is a major breakthrough for all digital asset and payment service providers in the region. The UAE has now positioned itself at the forefront of digital transformation in the region and has successfully created a regulatory environment that effectively balances financial stability and promotes digital innovation of FinTech companies and non-banking payment providers.
The SVF Regulations are a landmark development for the digital payments industry and our main highlights from the regulation are:
Please note that the regulation provides one-year transitional period will commence on the date when the regulation comes into force. Please contact our team for further details on how this regulation will impact your business.
Decision of the Chair of the Authority Board no. (23) of 2020 Concerning the Regulation on Crypto Assets Activities: SECURITIES AND COMMODITIES AUTHORITY OF UAE
By Poojitha Jananrthanan (Associate), Akshata Namjoshi (Fintech Lead) with inputs from Kokila Alagh (Founder)
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