Crypto.com’s UAE entity, Foris DAX Middle East FZE, has secured a Stored Value Facilities (SVF) license from the Central Bank of the UAE. This authorization positions Crypto.com as the first Virtual Asset Service Provider (VASP) to be officially approved for processing cryptocurrency payments related to Dubai government services. The exchange announced that this new license enables it to facilitate digital asset payments for government fees, a significant development in the region’s regulatory landscape.
Key Takeaways
- Crypto.com has obtained a UAE Stored Value Facilities license, marking a first for a VASP in the region.
- The license permits Crypto.com to process crypto payments for Dubai government services.
- Transactions will be settled in UAE dirhams or central bank-approved dirham-backed stablecoins.
- This move aligns with Dubai’s objective to digitize over 90% of transactions by 2026.
- The SVF license also opens avenues for crypto payment integrations with major entities like Emirates Airlines and Dubai Duty Free.
This regulatory achievement stems from a prior agreement between Crypto.com and Dubai Finance, established on May 12, 2025. This agreement laid the groundwork for a novel framework for crypto-based government payments, supporting Dubai’s broader “Cashless Strategy.” The strategy aims to transition a substantial majority of public and private sector transactions to cashless methods by the year 2026. Mohammed Al Hakim, Crypto.com’s President and General Manager for UAE & Bahrain, emphasized the exclusive nature of this service, stating that no other digital asset platform currently offers such capabilities within the Emirates. He further highlighted the company’s role in advancing digital payment innovation in the UAE.
To utilize these payment services, users are required to register through Crypto.com’s platform, which holds a license from the Virtual Assets Regulatory Authority (VARA). All transactions under this new framework will be settled in UAE dirhams or stablecoins that are backed by the dirham and approved by the Central Bank of the UAE. The SVF license’s implications extend beyond government fees, as it facilitates future crypto payment integrations with prominent organizations, including Emirates Airlines and Dubai Duty Free.
Setting a Regulatory Precedent
The granting of the Stored Value Facilities license to Crypto.com by the Central Bank of the UAE represents a significant step in the global evolution of digital asset regulation. This development could serve as a crucial precedent for other jurisdictions seeking to integrate cryptocurrency payments into their financial ecosystems, particularly for public services. The framework established in Dubai, which mandates settlements in fiat currency or regulated stablecoins and requires users to onboard through licensed platforms, addresses key concerns regarding consumer protection, anti-money laundering (AML), and financial stability. Such a structured approach may encourage other nations to adopt similar licensing regimes, thereby fostering clearer guidelines for VASPs operating within their borders. The emphasis on stablecoins pegged to local currencies, as seen in this case, also suggests a regulatory preference for digital assets that maintain a direct link to established monetary systems, potentially mitigating volatility concerns. This regulatory clarity is vital for attracting institutional investment and ensuring the sustainable growth of the digital asset industry worldwide, aligning with comprehensive frameworks such as Europe’s Markets in Crypto-Assets (MiCA) regulation.
Based on materials from : www.theblock.co