30s Summary

The Central Bank of the UAE has approved AED Stablecoin under its Payment Token Service Regulation, potentially paving the way for a regulated dirham-based stablecoin. The coin could be used for local trading of cryptocurrencies and purchasing goods and services. Meanwhile, Dubai’s Virtual Assets Regulatory Authority is increasing scrutiny of unregulated crypto companies. Separately, an FTX customer is suing Olympus Peak hedge fund over an alleged unpaid sum following the sale of his claims in the defunct trading platform. Also, FTX investors have dropped their lawsuit against US law firm Sullivan & Cromwell.

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The Central Bank of the United Arab Emirates has given a green light to AED Stablecoin under its Payment Token Service Regulation framework. This approval makes AED Stablecoin one of the first to potentially introduce a regulated dirham-based stablecoin in the UAE.

This also reduces worries about possible restrictions on crypto payments following the Central Bank’s recent release of its licensing framework, which bans crypto for payments unless it involves licensed dirham-pegged tokens.

If fully approved, AED Stablecoin’s AE Coin could be used as a local trading pair for cryptocurrencies on exchanges and decentralized platforms, as well as for buying goods and services.

Dubai’s Virtual Assets Regulatory Authority, which oversees crypto, has started clamping down on unregulated crypto companies and those breaking its marketing rules. On Oct. 9, it penalized seven companies for breaking marketing rules and operating without the needed licenses. More investigations are underway in partnership with other local authorities.

An FTX customer is taking hedge fund Olympus Peak to court. The customer, Nikolas Gierczyk, claims the firm owes him more money after he sold his claims in the defunct trading platform. According to reports, Gierczyk sold his large claim against FTX to the hedge fund at a reduced rate, while the hedge fund stands to earn more than $1 million from the deal.

Lastly, investors in FTX have dropped their class-action lawsuit against US law firm Sullivan & Cromwell. Earlier this year, a group of FTX creditors sued the firm, claiming it was involved in and benefited from FTX’s multibillion-dollar fraud. The lawsuit wanted compensation for damages caused by civil conspiracy, aiding and abetting fiduciary breaches, and aiding and abetting fraud. Sullivan & Cromwell acted as an external adviser to FTX in several deals and is overseeing the FTX bankruptcy proceedings.

Source: Cointelegraph