In a significant development for the cryptocurrency landscape in the United Arab Emirates, Crypto.com has secured a Stored Value Facilities (SVF) license, making it the first Virtual Asset Service Provider (VASP) in the region to achieve this milestone. The Central Bank of the UAE granted this important permit to its local entity, Foris DAX Middle East FZE, solidifying Crypto.com’s position in the market.
The importance of the SVF license cannot be overstated, particularly since it activates Crypto.com’s partnership with the Dubai Department of Finance. Back in May, the two entities entered into a memorandum of understanding aimed at facilitating cryptocurrency payments for government service fees. With this recent approval, they are now set to transition into the implementation phase of this initiative, providing residents in the UAE with the ability to settle government fees using digital assets.
The announcement made by the firm highlighted that all financial settlements will solely be processed using UAE dirhams or Central Bank-approved dirham-backed stablecoins within the framework of the SVF license. This innovation not only ensures secure transactions but also aligns with Dubai’s broader vision articulated in its Cashless Strategy.
Launched in October 2024 under the direction of Crown Prince Sheikh Hamdan, the Cashless Strategy aims for 90% of all transactions—spanning both public and private sectors—to be digital by the end of the year. This ambitious goal is now more achievable with the introduction of Crypto.com’s services.
For UAE residents, the new payment service requires onboarding through Crypto.com’s platform, which holds licensing from Dubai’s Virtual Assets Regulatory Authority (VARA). This positions the firm with dual regulatory standing, thus bolstering its legitimacy in the region’s evolving financial landscape. Furthermore, pending additional approvals from the Central Bank of the UAE (CBUAE), the license could also facilitate crypto payment integrations with major entities such as Emirates Airlines and Dubai Duty Free.
Mohammed Al Hakim, the head of Crypto.com for the UAE and Bahrain, characterized the achievement as a competitive advantage against other digital asset platforms. He remarked, “We are now able to offer what no other digital asset platform can, by providing exclusive digital asset payment services for Dubai Government fees to residents in the UAE.”
This positions Crypto.com as the sole gateway for state-fee crypto payments within the UAE, creating a unique service offering that may set a new standard within the region. The speed with which other VASPs seek similar licensing will be crucial to determining future dynamics in the competitive landscape.
