Introduction
Across the Middle East and North Africa, regulators are increasingly engaging with stablecoins—not to ban them, but to shape them.
With Gulf economies digitizing and North African fintech growing rapidly, a clear trend has emerged: compliant stablecoins will be the first acceptable form of public blockchain money.
Regulatory Momentum: 2024–2025 Snapshot
UAE
Working groups with VARA are designing frameworks for fiat-backed digital assets.
Saudi Arabia
Piloting cross-border CBDC settlement with the UAE (Project Aber).
Morocco
Bank Al-Maghrib is preparing a crypto regulatory bill focused on AML/KYC.
Egypt & Tunisia
Exploring CBDCs and studying stablecoin risks.
Regulators understand that digital currencies unlock economic efficiency—but only if fully compliant.
Why Compliance Is the Core Issue
Stablecoins introduce transparency but also create risks:
- Anonymous transfers
- Offshore issuance
- Liquidity without supervision
Central banks want stability, not speculation.
This is why the next wave of stablecoin infrastructure must include:
- On-chain KYC enforcement
- Blacklisting capability
- Jurisdiction-bound transfer rules
- Institutional reserve management
PayWithZ: The New Architecture Regulators Expect
Instead of fighting crypto, regulators want programmable money rails they can trust.
PayWithZ's model—where KYC, ownership, jurisdiction, and compliance are enforced directly at the token level—fits perfectly with the new MENA direction.
It enables:
- Banks to issue digital dirhams, dinars, and local stablecoins
- Fintechs to build compliant payment products
- Governments to monitor flows without controlling code
Regulatory Timeline
- 2024 Q1: UAE VARA releases stablecoin framework consultation
- 2024 Q2: Saudi Arabia and UAE launch Project Aber Phase 2
- 2024 Q3: Morocco's Bank Al-Maghrib publishes crypto regulatory draft
- 2025 Q1: Expected implementation of stablecoin regulations across MENA
Conclusion
The MENA region is quietly shaping the global blueprint for regulated stablecoins. With clear regulatory frameworks emerging and strong institutional interest, compliant stablecoins are positioned to become the primary form of programmable money in the region.
Those who build compliance into the protocol—not as an add-on—will dominate the next decade. The infrastructure that enables banks, fintechs, and governments to issue compliant stablecoins while maintaining regulatory transparency will be the foundation of the region's digital economy.
