UAE tightens grip on regulated cryptocurrency economy with Crypto.com deal / Image: File
The UAE has taken another major step towards becoming a global hub for digital finance after Crypto.com became the first cryptocurrency platform to obtain a Stored Value Facility (SVF) license from the Central Bank of the UAE.The license has been granted to the company’s regional entity, Foris DAX Middle East FZE, allowing the platform to offer regulated digital asset payment services across the Emirates. The approval is a landmark moment for the country’s cryptocurrency industry as it places virtual asset payments directly within the UAE’s regulated financial system.Under the new framework, UAE residents will soon be able to pay government service fees using cryptocurrencies through the Crypto.com platform.
Payments will be processed through a regulated system linked to Dubai’s broader cashless economy strategy.All settlements will eventually be converted into UAE dirhams or dirham-backed stablecoins approved by the central bank, ensuring that the government does not directly deal with volatile cryptocurrencies, officials said.
Cryptocurrencies have become mainstream in the UAE
This approval activates Crypto.com’s partnership with Dubai Finance Corporation, which was previously announced during the Dubai FinTech Summit.
This partnership is expected to support Dubai’s ambitious goal of making 90 percent of all transactions cashless by 2026.Once the technical rollout is complete, individuals and businesses will be able to use digital wallets linked to Crypto.com to pay for government-related services. The company’s platform will instantly convert cryptocurrency payments into dirhams before transferring the funds to government accounts.Dubai authorities estimate that a broader cashless transition could add approximately AED 8 billion annually to the economy by promoting innovation in fintech and digital trade.The license also gives Crypto.com a unique market position in the UAE. As the only virtual asset service provider to currently hold SVF specific approval, users seeking to use the government’s cryptocurrency payment services will need to onboard through the VARA-licensed Crypto.com platform.
Emirates Airlines, Dubai Duty Free will soon accept cryptocurrencies
Central bank approval could also pave the way for cryptocurrency-powered payment systems outside of government services.Crypto.com said the license may eventually support digital asset payment integrations with Emirates Airlines and Dubai Duty Free, both online and at physical locations, once additional regulatory approvals are completed.If implemented, travelers may be able to pay for flight bookings, shopping and travel-related services using digital assets while merchants continue to receive payments in dirhams.
Analysts say this model helps reduce volatility concerns while continuing to expand the use of cryptocurrencies in the real world.This development comes as the UAE rapidly expands its regulatory framework for virtual assets. In recent years, Dubai established the Virtual Assets Regulatory Authority (VARA), while federal authorities have also expanded central bank supervision of cryptocurrency-related payment services under updated financial legislation.
Crypto.com expands its presence in the UAE
Crypto.com executives described the license as a milestone for both the company and the UAE’s digital economy ambitions.Eric Anziani, president and chief operating officer of Crypto.com, said the approval reflects the company’s focus on compliance, security and regulated financial innovation. He described the UAE as one of the most advanced markets in the world in digital economy legislation and regulation of cryptocurrencies.Mohammed Alhakim, president and general manager of Crypto.com for the UAE and Bahrain, said the company can now provide services “no other digital asset platform can offer” by enabling regulated cryptocurrency payments with Dubai government fees.Founded in 2016, Crypto.com has aggressively expanded across regulated markets around the world and now serves millions of users globally. The company already holds a VARA license in Dubai and is working to foster partnerships across the UAE’s fintech and blockchain ecosystem.Industry experts say the latest approval reinforces the UAE’s reputation as one of the most crypto-friendly and regulation-focused markets in the world, especially at a time when many countries are still debating how to integrate digital assets into mainstream financial systems.
