This week, Dubai continued to strengthen its position in the cryptocurrency world with new legal rulings and financial initiatives. The Dubai Court of First Instance ruled that cryptocurrency can be used as a valid method of salary payment. This ruling marks a turning point in the UAE’s legal approach to digital currencies. The court sided with an employee whose contract included payment in both fiat currency and EcoWatt tokens — a first for Dubai’s legal system.

In addition, Tether, the issuer behind the largest stablecoin, announced plans to launch a dirham-pegged stablecoin (AEDT). Partnering with UAE-based companies Phoenix Group PLC and Green Acorn Investments Ltd, Tether aims to facilitate smoother transactions within the UAE and across borders. This new stablecoin is expected to streamline remittances and trade, positioning Dubai as a key player in both regional and international crypto markets.

Last month, the UAE took another step toward integrating cryptocurrencies into its financial system by allowing residents to trade digital assets directly through their bank accounts. With the support of local exchange M2, this initiative enables seamless conversions between UAE dirhams (AED) and various cryptocurrencies, making digital assets easier to access and use in everyday transactions.

These recent efforts build on Dubai’s long-standing commitment to blockchain and digital assets. Since launching the Dubai Blockchain Strategy in 2018, the emirate has aimed to become the world’s first blockchain-powered government. This initiative laid the groundwork for Dubai’s current status as a leading city in blockchain technology and digital assets.

As a result of these strategic efforts, Dubai has become a hub for blockchain and crypto activity, hosting numerous conferences and attracting major industry players. The Dubai International Financial Centre (DIFC) has emerged as a key location for crypto businesses, supported by a regulatory framework that fosters innovation and encourages digital asset growth.

To maintain this momentum, Dubai has been proactive in developing regulations that balance industry growth with consumer protection. The Dubai Financial Services Authority (DFSA) has introduced measures to ensure a safe environment for crypto businesses. More recently, the DIFC passed a comprehensive digital asset law, further strengthening Dubai’s reputation as a crypto-friendly jurisdiction. Additionally, Dubai’s crypto licensing regime has simplified market entry for businesses, reducing barriers and attracting more blockchain professionals to the region.

These regulatory efforts align with Dubai’s broader initiatives, from recognising cryptocurrency as a legitimate form of salary payment to launching a dirham-pegged stablecoin. By continuously integrating digital assets into its economy and maintaining strong regulatory support, Dubai is positioning itself as a key player in the global crypto market. As the emirate continues to innovate, its influence in the cryptocurrency world is set to expand even further.

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