The Central Bank of the United Arab Emirates (CBUAE) granted in-principle approval to AED Stablecoin under its Payment Token Service Regulation framework.

AED Stablecoin’s preliminary license approval makes it a frontrunner in the race to become the first issuer of a regulated dirham-pegged stablecoin in the UAE.

This development eases concerns about potential restrictions on crypto payments that arose after the CBUAE’s recent release of its licensing framework , which prohibits crypto for payments unless it involves licensed dirham-pegged tokens.

If fully approved, AED Stablecoin’s AE Coin could serve as a local trading pair for cryptocurrencies in exchanges and decentralized platforms, while allowing merchants to accept it for goods and services. 

Dubai’s crypto regulator cracks down on unlicensed firms

Dubai’s crypto regulator has initiated a crackdown on unregulated crypto companies and firms violating its marketing rules. 

On Oct. 9, Dubai’s Virtual Assets Regulatory Authority (VARA) issued fines and cease-and-desist orders to seven businesses for breaching marketing regulations and operating without required licenses. 

VARA said it’s conducting further investigations in collaboration with other local authorities. The regulator did not specify which companies have received the sanctions. 

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FTX user sues hedge fund over bankruptcy profits

An FTX customer is suing hedge fund Olympus Peak, alleging the firm owes him additional recovery after he sold his claims in the collapsed trading platform.

Nikolas Gierczyk, an FTX user from California, reportedly sued the hedge fund Olympus Peak, claiming the company could gain more than $1 million from their deal. Gierczyk alleges the hedge fund failed to honor a right to further recovery he had negotiated in their agreement.

According to a Bloomberg report, Gierczyk sold his $1.59 million claim against FTX to the hedge fund at a 42% discount, receiving a $930,000 payout. However, with FTX’s reorganization plan approved, customers are now expected to receive 129% to 146% of their claims.

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FTX investors end lawsuit targeting Sullivan & Cromwell

FTX investors have voluntarily dismissed their proposed class-action lawsuit against United States law firm Sullivan & Cromwell (S&C). 

On Feb. 16, a group of FTX creditors sued the law firm , alleging that it played a role in FTX’s multibillion-dollar fraud and that the company benefitted from it financially. The suit wanted compensation for damages for civil conspiracy, aiding and abetting fiduciary breaches and aiding and abetting fraud. 

S&C served as an outside counsel to FTX in several deals and oversees the FTX bankruptcy proceedings.

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