The Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval to the AED stablecoin under its Payment Token Services Regulatory Framework.
AED Stablecoin’s preliminary license approval puts it among the frontrunners in the race to become the first issuer of a regulated dirham-pegged stablecoin in the UAE.
This development allays concerns about potential restrictions on cryptocurrency payments that arose after the CBUAE recently announced its licensing framework. This prohibits cryptocurrency payments unless they contain licensed dirham-pegged tokens.
Once fully accepted, AED Stablecoin’s AE Coin can serve as a local trading pair for cryptocurrencies on exchanges and decentralized platforms, and merchants can accept it for goods and services.
Dubai cryptocurrency regulator cracks down on unlicensed companies
Dubai’s cryptocurrency regulator has launched a crackdown on unregulated cryptocurrency companies and those that break marketing rules.
On October 9, Dubai’s Virtual Assets Regulatory Authority (VARA) fined and suspended seven companies for violating marketing regulations and operating without required licenses.
VARA said it was working with other local authorities to investigate further. Regulators did not specify which companies were sanctioned.
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FTX user sues hedge fund over bankruptcy profits
FTX customers have filed a lawsuit against hedge fund Olympus Peak, claiming the company owed them additional recovery debts after selling their claims on the collapsed trading platform.
Nikolas Gierczyk, an FTX user from California, has reportedly sued hedge fund Olympus Peak, claiming the company could make more than $1 million from the trade. Gierczyk claims the hedge fund failed to honor his right to additional recovery he had agreed to.
According to a Bloomberg report, Gierczyk sold his $1.59 million claim on FTX to a hedge fund at a 42% discount, receiving $930,000 in dividends. However, with FTX’s reorganization plan approved, customers are now expected to receive between 129% and 146% of their claims.
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FTX Investors Ends Lawsuit Targeting Sullivan & Cromwell.
FTX investors have voluntarily dismissed a class action lawsuit filed against US law firm Sullivan & Cromwell (S&C).
On February 16, a group of FTX creditors sued the law firm, alleging that the firm participated in FTX’s multibillion-dollar fraud and that the company profited financially from it. The lawsuit sought damages for civil conspiracy, aiding and abetting breach of trust, and aiding and abetting fraud.
S&C served as FTX’s outside counsel on several transactions and oversaw FTX’s bankruptcy proceedings.
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