Stablecoins are legal in the UAE and tightly regulated. The central bank lets licensed issuers create dirham stablecoins for everyday payments, while foreign stablecoins (from issuers registered with the central bank) may be used as payment only to buy other virtual assets, not to pay for goods or services. Use a platform licensed by the CMA, VARA, ADGM FSRA or DFSA, and check that the token is accepted by that regulator. Individuals pay no income tax on gains.
Regulators
Central Bank of the UAE (CBUAE), Capital Market Authority (CMA, federal), Virtual Assets Regulatory Authority (VARA, Dubai), ADGM Financial Services Regulatory Authority (FSRA), Dubai Financial Services Authority (DFSA, DIFC)
Licensing
Onshore: CBUAE licenses payment token issuance, conversion and custody/transfer; no person may issue or provide services relating to algorithmic stablecoins or privacy tokens in or directed to the UAE. Virtual asset platforms are licensed by the Capital Market Authority (CMA, successor to the SCA since 1 Jan 2026) federally and VARA in Dubai; free-zone firms are licensed by FSRA (ADGM) or DFSA (DIFC). The DFSA keeps regulator-led recognition for fiat tokens (recognised list reported as USDC, EURC and RLUSD as of Jan 2026). Federal Decree-Law 6 of 2025 extended central-bank licensing to payment services using virtual assets, with a one-year transition to 16 Sep 2026 that the CBUAE may extend.
Payments
restricted — a merchant in the UAE may accept a virtual asset as payment only if it is a dirham payment token of a licensed issuer, or a foreign payment token of a registered foreign issuer used to purchase a virtual asset or virtual-asset derivative; foreign stablecoins cannot be used for general goods and services.
Tax
No personal income or capital gains tax; transfers and conversions of virtual assets are VAT-exempt (Cabinet Decision 100/2024). Corporate tax applies to business profits.
Timeline
Jan 1, 2026Federal Decree-Laws 32 and 33 of 2025 in force; the SCA becomes the Capital Market Authority and virtual assets are regulated as financial products outside the financial free zones.
Jan 12, 2026Updated DFSA crypto token rules take effect in the DIFC (firm-led suitability for most tokens; privacy tokens banned; fiat tokens still need DFSA recognition).
Sep 16, 2026 (Expected)End of the one-year transition under Federal Decree-Law 6 of 2025 (the CBUAE may extend it).
Jan 1, 2027 (Expected)Deadline for existing entities to regularise under the new capital markets laws.
EU
European Union
RegulatedYour country
In the EU a stablecoin tied to one currency is an e-money token: it may be offered only if its issuer is an EU-authorised bank or e-money institution, reserves are protected and you can redeem at face value. Licensed platforms cannot sell you stablecoins whose issuer lacks EU authorisation; between December 2024 and March 2025 major exchanges delisted such tokens, including USDT, for EEA users. Holding them in custody or your own wallet and transferring them is not prohibited, but liquidity and consumer protection are weaker. Check the ESMA register for authorised issuers and providers; tax depends on your Member State.
Regulators
European Banking Authority (EBA), ESMA, National competent authorities, European Central Bank (monetary policy role)
Licensing
Titles III and IV apply since 30 Jun 2024: an EMT may be offered to the public or admitted to trading only if its issuer is authorised in the EU as a credit institution or electronic money institution and has published a white paper (other offerors need the issuer's written consent); significant EMTs face additional EBA oversight. CASP authorisation applies since 30 Dec 2024 and all national transitional periods ended on 1 Jul 2026. For ARTs/EMTs whose issuer is not authorised in the EU, ESMA (17 Jan 2025, following a Commission Q&A) expected CASPs to restrict services facilitating their acquisition by end-January 2025 and to stop making them available for trading and comply no later than end of Q1 2025, with sell-only services allowed until then; ESMA noted that mere custody and transfer of such tokens should remain possible.
Payments
allowed — authorised EMTs are a MiCA payment-type instrument; no MiCA ban on paying with crypto. Tokens whose issuer is not authorised in the EU cannot be bought through EU-licensed platforms, but self-custody and transfers are not prohibited.
Tax
Set by each Member State (rules differ on whether swapping or spending stablecoins is taxable). DAC8 obliges CASPs to report user crypto transactions, including stablecoins, from 1 Jan 2026.
Timeline
Jan 1, 2026DAC8 crypto-asset tax reporting obligations start.
Jul 1, 2026All MiCA transitional (grandfathering) periods for CASPs end.
2027 (for 2026 transactions) (Expected)First DAC8 reports to tax authorities.
unknown (legislative proposal of Dec 2025) (Expected)Possible transfer of CASP supervision to ESMA under the Market Integration Package.
US
United States
RegulatedYour country
Holding and using dollar stablecoins is legal in the US. The GENIUS Act creates federal and state licences for issuers, requires full reserves and bars issuers from paying interest to holders; it takes effect no later than 18 January 2027, and regulators are still finalising the rules. From 18 July 2028 US platforms may only offer stablecoins from permitted issuers or from foreign issuers that meet US conditions (comparable home regulation, registration and US reserves). Offshore-issued tokens such as USDT do not yet have that status: Tether launched a separate US token (USA₮, issued by Anchorage Digital Bank) in January 2026 and says USDT is progressing towards compliance, so USDT's future availability on US platforms depends on the final rules. Gains and losses are taxed as property.
Regulators
OCC, Federal Reserve, FDIC, NCUA, U.S. Treasury (incl. OFAC, FinCEN), State regulators (e.g. NYDFS), IRS
Licensing
Issuance: from the Act's effective date (the earlier of 18 Jan 2027 or 120 days after final implementing regulations) only permitted payment stablecoin issuers may issue payment stablecoins in the US (section 3(a)). Implementing rules are still proposals as of Sep 2026: OCC proposal (25 Feb 2026), FDIC proposed rule (Federal Register, 10 Apr 2026), Treasury proposed rule on issuance, offer and sale (announced 17 Aug 2026, published 18 Aug 2026, comments due 19 Oct 2026); no final GENIUS Act implementing rule found in the Federal Register. Offering: from 18 Jul 2028 a digital asset service provider may not offer or sell a payment stablecoin to a person in the US unless it is issued by a permitted issuer (section 3(b)(1)); a foreign issuer can qualify only if Treasury finds its home regime comparable, it registers with the OCC and holds reserves in a US financial institution sufficient for US customers unless a reciprocal arrangement allows otherwise (section 18), and service providers may not make a foreign issuer's stablecoin available unless the issuer can and will comply with lawful orders (section 3(b)(2)). Treasury's proposal adds a safe harbour for foreign issuers that do not target US persons and lets service providers rely on a foreign issuer's representations after reasonable due diligence. Issuers may not pay holders interest or yield solely in connection with holding, use or retention of the stablecoin (section 4(a)(11)).
Payments
allowed — stablecoins may be used for payments; the Act's issuance and offer rules do not apply to direct transfers between two individuals acting for their own lawful purposes without an intermediary, or to transactions through self-custody wallets (section 3(h)(1)). Not legal tender.
Tax
Treated as property (IRS: digital assets, including stablecoins, are property, not currency): each sale, exchange or spending can trigger gain or loss, even if usually near zero. The GENIUS Act does not set income-tax rules for stablecoins.
Timeline
Oct 19, 2026 (Expected)Comment period on the Treasury proposed rule closes; final rules from Treasury, OCC, FDIC and the Federal Reserve to follow.
2027-01-18 (latest) (Expected)GENIUS Act takes effect: issuing payment stablecoins in the US requires permitted-issuer status.
Jul 18, 2028 (Expected)US service providers may only offer payment stablecoins of permitted issuers or qualifying foreign issuers.
Date to be announced (Expected)Treasury comparability determinations for foreign stablecoin regimes; possible IRS guidance on stablecoin tax treatment.
GB
United Kingdom
RegulatedYour country
Buying and holding stablecoins is legal in the UK through FCA-registered firms. A dedicated regime is coming: from 25 October 2027 stablecoin issuers in the UK need FCA authorisation, and systemic stablecoins will also be supervised by the Bank of England with strict backing rules and a temporary issuance cap (the earlier idea of per-coin holding limits was dropped). Offshore dollar stablecoins are not banned, but they are not covered by the new UK issuer protections. Disposals are currently subject to Capital Gains Tax; HMRC has drafted rules that would exempt disposals of eligible stablecoins from April 2027.
Regulators
Financial Conduct Authority (FCA), Bank of England, HM Treasury, HMRC
Licensing
Now: FCA AML registration and financial promotions rules. New regime: FCA policy statements of 30 Jun 2026 (incl. PS26/10 on stablecoin issuance) — authorisation gateway 30 Sep 2026 to 28 Feb 2027; regime in force 25 Oct 2027; UK stablecoin issuers need FCA authorisation. Bank of England policy statement (22 Jun 2026) for systemic stablecoins: backing 70% short-term gilts / 30% unremunerated BoE deposits and a temporary £40bn issuance limit per product; the BoE replaced its earlier proposal of per-coin holding limits with this issuance guardrail; draft code out for consultation to 22 Sep 2026, finalisation expected by end-2026. The regime focuses on UK issuance; overseas-issued stablecoins are not banned.
Payments
allowed — not legal tender. HM Treasury consultation (14 Jul 2026, closes 6 Oct 2026) proposes bringing UK-issued qualifying stablecoins used for payments into the payments perimeter, with stablecoins from recognised overseas jurisdictions to be considered later.
Tax
Capital Gains Tax on disposals under current cryptoasset rules. HMRC draft legislation (13 Jul 2026) would exempt disposals of eligible stablecoins from Capital Gains Tax for individuals and trustees and tax certain interest-like returns as savings income, from 6 Apr 2027 (companies: accounts-based treatment from 1 Apr 2027). Draft, not yet enacted.
end-2026 (Expected)Bank of England finalises systemic stablecoin code; further FCA–BoE consultation on systemic stablecoin issuers.
Apr 6, 2027 (Expected)Proposed stablecoin tax rules for individuals take effect (draft).
Oct 25, 2027 (Expected)New FCA cryptoasset and stablecoin regime comes into force.
BH
Bahrain
RegulatedYour country
Stablecoins are legal in Bahrain and regulated by the central bank. Since July 2025 only CBB-licensed issuers may issue stablecoins backed one-to-one by dinar, dollar or other approved currencies, and exchanges must hold a CBB crypto-asset licence. Use CBB-licensed platforms. There is no personal tax on gains.
Regulators
Central Bank of Bahrain (CBB)
Licensing
Since Jul 2025 no person may issue and offer stablecoins, or actively market their issuance to the public, within or from Bahrain without a CBB licence (SIO-1.1.3). Licensed issuers may issue single-currency stablecoins backed by BHD, USD or another fiat currency approved by the CBB, with reserve assets at least equal to the par value in circulation. The module also allows yield-bearing approved stablecoins that pay returns only from the interest or rewards (for Shariah-compliant stablecoins) earned on reserve assets. Exchanges, brokers and custodians need a CBB crypto-asset licence. Rules for offering foreign-issued stablecoins to retail through crypto-asset licensees were not verified.
Payments
uncertain — no general ban identified; the SIO framework does not set rules on retail payment use; not legal tender.
Tax
No personal income or capital gains tax in Bahrain.
Timeline
Jul 4, 2025CBB issues the Stablecoin Issuance and Offering (SIO) Module for licensed single-currency stablecoin issuers.
Date to be announced (Expected)First CBB-licensed stablecoin issuances; no other major pending change identified.
ID
Indonesia
RegulatedYour country
In Indonesia stablecoins are treated like other crypto assets: you may buy and sell them on OJK-licensed platforms, but you may not use them to pay for goods or services, because the rupiah is the only legal means of payment. Each trade carries a small final income tax (0.21% on local platforms, 1% on foreign ones). There is no dedicated stablecoin law yet.
Regulators
Otoritas Jasa Keuangan (OJK), Bank Indonesia (BI), Directorate General of Taxes
Licensing
OJK licenses exchanges, clearing, custodians and traders under POJK 27/2024 (as amended by POJK 23/2025); supervision moved from Bappebti to OJK on 10 Jan 2025. Exchange reporting rules (PADK OJK 3/2026) effective 1 Sep 2026. No stablecoin issuer regime identified.
Payments
banned — Bank Indonesia does not recognise virtual currency as a payment instrument and bars payment system operators and fintechs from processing virtual-currency transactions (PBI 18/40/2016, 19/12/2017).
Tax
PMK 50/2025 (from 1 Aug 2025): final income tax of 0.21% of transaction value via domestic platforms, 1% via foreign platforms; crypto transfers VAT-exempt.
Timeline
Jan 10, 2025Crypto supervision transfers from Bappebti to OJK (POJK 27/2024).
Aug 1, 2025PMK 50/2025 crypto tax rules take effect.
Sep 1, 2026PADK OJK 3/2026 exchange reporting rules take effect.
Date to be announced (Expected)No stablecoin-specific framework announced (not verified in this pass).
KZ
Kazakhstan
RegulatedYour country
Kazakhstan's new digital assets law (in force 1 May 2026) treats money-backed stablecoins as digital financial assets and brings trading platforms under the National Bank, alongside the AIFC regime. A July 2026 presidential decree plans stablecoin use in cross-border trade settlements and an income-tax exemption for individuals trading on regulated platforms. Use licensed platforms; detailed stablecoin rules are still emerging.
Regulators
National Bank of Kazakhstan (NBK), Agency for Regulation and Development of the Financial Market (ARDFM), Astana Financial Services Authority (AFSA, AIFC)
Licensing
Outside the AIFC, NBK licenses unsecured digital asset exchanges and registers trading-platform and DFA-platform operators from 1 May 2026; within the AIFC, AFSA licenses providers. Whether foreign stablecoins such as USDT/USDC may be offered by national licensees was not confirmed in sources.
Payments
restricted — not legal tender; a presidential decree of 7 Jul 2026 envisages mechanisms for using digital assets and stablecoins in cross-border settlements.
Tax
Under the decree of 7 Jul 2026, individuals' income from digital asset transactions through Kazakhstan's regulated infrastructure is planned to be exempt from income tax (not yet enacted per the sources).
Timeline
May 1, 2026Law on Digital Assets in force; stablecoins classed as digital financial assets; NBK licensing and registration begins.
Jul 7, 2026Presidential decree: planned income-tax exemption for individuals on regulated infrastructure; mechanisms for stablecoins in cross-border settlements.
Date to be announced (Expected)Implementing rules for stablecoins, cross-border stablecoin settlements and the planned income-tax exemption.
MY
Malaysia
RegulatedYour country
Stablecoins can be bought legally in Malaysia on exchanges registered with the Securities Commission, but there is no dedicated stablecoin law yet. Bank Negara Malaysia is testing ringgit stablecoins for wholesale payments in 2026 and plans to give clarity on their use by the end of 2026. Stablecoins are not legal tender. Individual investors generally pay no capital gains tax.
Regulators
Securities Commission Malaysia (SC), Bank Negara Malaysia (BNM), Inland Revenue Board (LHDN)
Licensing
SC Recognized Market Operator registration for DAX (5 registered as at 20 Jul 2026); at least one lists USDT and USDC (per secondary source). No licensing regime for stablecoin issuers yet; ringgit stablecoin initiatives run in BNM sandbox for wholesale use in 2026.
Payments
restricted — not legal tender; no general stablecoin payment regime; BNM pilots focus on wholesale domestic and cross-border payments and settlement of tokenised assets.
Tax
No capital gains tax for individual investors; gains from trading as a business are taxable under the Income Tax Act 1967.
Timeline
Jun 2025BNM launches Digital Asset Innovation Hub.
Feb 11, 2026BNM onboards three initiatives to test ringgit stablecoins and tokenised deposits in 2026 (wholesale use, including Shariah considerations).
end-2026 (Expected)BNM to clarify the use of ringgit stablecoins and tokenised deposits.
PK
Pakistan
RegulatedYour country
Pakistan now regulates virtual assets, including stablecoins, under the Virtual Assets Act 2026, and existing crypto firms had to apply to PVARA for a no-objection certificate by 5 September 2026 or stop operating. The regime is new: full licences and stablecoin-specific rules are still pending, and the government has only explored a dollar-linked stablecoin for cross-border payments. Use only platforms that applied to PVARA, and expect rules to change.
Regulators
Pakistan Virtual Assets Regulatory Authority (PVARA), State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP)
Licensing
Virtual Assets Act 2026 (passed by the Senate 27 Feb 2026, signed by the President in Mar 2026) gives PVARA licensing powers over 11 activity types (including custody, exchange, broker-dealer and derivatives). Existing firms had to apply for a no-objection certificate by 5 Sep 2026 or cease operations. No full licences reported yet; no stablecoin issuer framework published.
Payments
restricted — since Apr 2026 banks may serve PVARA-licensed providers but may not invest in, trade or hold crypto themselves; consumer payment use of stablecoins is not addressed in the sources.
Sep 5, 2026Deadline for existing crypto firms to apply for PVARA no-objection certificate.
late 2026–2027 (Expected)First full PVARA licences; possible stablecoin rules.
QA
Qatar
BannedYour country
Qatar does not permit stablecoin services: the QFC digital-asset rules expressly exclude stablecoins, virtual asset services may not be conducted in or from the QFC, and the central bank has declared crypto trading unlawful. No licensed provider can sell you a stablecoin in Qatar, and there is no legal protection if something goes wrong.
Regulators
Qatar Central Bank (QCB), Qatar Financial Centre Regulatory Authority (QFCRA), Qatar Financial Markets Authority (QFMA)
Licensing
No licensing for stablecoin issuance or services. The QFC framework licenses tokenisation of real-world assets only; QCB and QFCRA prohibitions on virtual-asset services remain.
Payments
banned
Timeline
Dec 2019QFCRA states that virtual asset services may not be conducted in or from the QFC.
Sep 2, 2024QFCRA clarifies that cryptocurrencies, stablecoins and CBDCs are Excluded Tokens under the new Digital Assets Framework; earlier guidance remains in place for them.
Date to be announced (Expected)No announced plan to permit stablecoins.
RU
Russia
RestrictedYour country
Since 1 September 2026 Russians can legally buy foreign stablecoins only through licensed intermediaries, under the same rules as other crypto: investors must pass a test, retail investors are capped at RUB 300,000 a year per intermediary, and Bank of Russia draft rules include USDT among the few assets retail investors may buy. Paying for goods and services inside Russia with stablecoins is banned. Russia-linked platforms are heavily sanctioned, and crypto controlled by them has been frozen in enforcement actions, so holders face a real freezing risk.
Regulators
Bank of Russia, Ministry of Finance, Federal Tax Service, Rosfinmonitoring
Licensing
From 1 Sep 2026 crypto trading goes through licensed intermediaries (exchanges, brokers, depositories), with a transition until 1 Jul 2027 for market participants to obtain licences. Investors must pass a test; non-qualified investors may buy only the most liquid cryptocurrencies, up to RUB 300,000 a year per intermediary. Bank of Russia draft rules (Aug 2026) would limit that list to BTC, ETH and USDT (final adoption not verified). Qualified investors have no cap.
Payments
banned for domestic payments; exporters and importers may use cryptocurrencies, including stablecoins, in cross-border payments without limitation, via intermediaries or directly using wallets.
Timeline
Aug 2026President signs the law (reported).
Sep 1, 2026Law in force: crypto trading via licensed intermediaries; foreign stablecoins treated like cryptocurrencies.
Jul 1, 2027 (Expected)End of transition: unregistered intermediaries must stop.
Date to be announced (Expected)Final Bank of Russia list of assets available to non-qualified investors.
SA
Saudi Arabia
UncertainYour country
Saudi Arabia has no licensing regime for stablecoins, and regulators have warned since 2018 that virtual currencies are unregulated and no one is authorised to trade them. Holding a stablecoin is not expressly banned, but there is no local investor protection. Officials have spoken about a future regulated stablecoin framework, but it has not been published.
Regulators
Saudi Central Bank (SAMA), Capital Market Authority (CMA)
Licensing
None in force. No entity is licensed to deal in virtual currencies or stablecoins; a regulated stablecoin framework has been discussed by officials but no rulebook has been published.
Payments
restricted — not legal tender; no licensed payment use; regulators warn against dealing with unlicensed parties.
Timeline
Aug 12, 2018Standing committee led by CMA with SAMA warns virtual currencies are not regulated and no parties are licensed.
Nov 2025Reports that Saudi Arabia plans nationally regulated stablecoins involving SAMA and the CMA; no framework published (secondary sources only).
Date to be announced (Expected)Possible SAMA/CMA stablecoin framework.
TR
Turkey
RegulatedYour country
Stablecoins are legal to buy and hold in Turkey through platforms licensed or listed by the Capital Markets Board, but they cannot be used to pay for goods or services. Stablecoins have no deposit protection. There is no specific crypto tax at the moment, although proposals have been made.
Regulators
Capital Markets Board (SPK/CMB), Central Bank of the Republic of Türkiye (CBRT), MASAK (Financial Crimes Investigation Board)
Licensing
SPK licence required for crypto asset service providers (Communiqués of 13 Mar 2025); platforms on the SPK operating list continue while applications are assessed. Unlicensed operation is a criminal offence. No stablecoin issuer regime identified.
Payments
banned — CBRT Regulation on the Disuse of Crypto Assets in Payments (Official Gazette 31456, 16 Apr 2021, in force 30 Apr 2021): crypto assets may not be used directly or indirectly in payments, and payment and e-money institutions may not intermediate fund transfers to or from crypto platforms.
Tax
No specific crypto income tax enacted; a March 2026 proposal (10% withholding on gains and 0.03% transaction tax) was withdrawn from the omnibus bill later that month (reported).
Timeline
Jul 2, 2024Law No. 7518 brings crypto asset service providers under SPK licensing.
Mar 13, 2025SPK publishes two communiqués on crypto asset service providers.
Mar 2, 2026Ruling party proposes a crypto gains withholding tax and transaction levy (withdrawn from the bill later in March 2026, reported).
Date to be announced (Expected)Final SPK operating licences; possible new crypto tax bill.
UZ
Uzbekistan
RestrictedYour country
Uzbek residents may hold stablecoins but may buy and sell them only through locally licensed providers for soum, not on foreign exchanges, and may not issue their own. Stablecoin payments are allowed only in a supervised sandbox scheduled from 2026. Crypto transactions are reported to be tax-exempt.
Regulators
National Agency of Perspective Projects (NAPP), Central Bank of Uzbekistan (CBU)
Licensing
NAPP licenses crypto exchanges, depositories, crypto shops and mining pools. Since 1 Jan 2023 residents may buy and sell crypto only through domestic licensed providers for soum; foreign exchanges are off-limits.
Payments
restricted — crypto is not a means of payment; a decree reported in Dec 2025 provides for a NAPP/CBU supervised sandbox from 1 Jan 2026 in which stablecoins may be used as a payment instrument.
Tax
Crypto transactions reported as exempt from tax for individuals and legal entities (Elliptic guide).
Timeline
Jan 1, 2023Residents restricted to domestic licensed crypto providers.
Dec 2025Decree reported to provide for a NAPP/CBU sandbox from 1 Jan 2026 allowing stablecoin payments.
Date to be announced (Expected)Launch and outcome of the stablecoin payment sandbox and possible permanent rules.
