Crypto.com has become the first Virtual Asset Service Provider (VASP) in the United Arab Emirates (UAE) to obtain a Stored Value Facilities (SVF) license.
The Central Bank of the UAE granted the permit to its local entity, Foris DAX Middle East FZE.
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Why the Crypto.com SVF License Matters
Dubai Finance and Crypto.com entered into a memorandum of understanding in May to facilitate cryptocurrency payments for government service fees. The latest approval now paves the way for the partnership to move into the implementation phase.
“Having secured an SVF license, Crypto.com can now activate its partnership with the Dubai Department of Finance, which will provide residents in the UAE with the ability to pay Government fees with virtual assets,” the announcement read.
The firm also stated that all financial settlements will be processed exclusively in UAE dirhams or Central Bank-approved dirham-backed stablecoins through the SVF framework. This enables secure transactions while advancing Dubai’s Cashless Strategy.
The Dubai Cashless Strategy was launched in October 2024 under Crown Prince Sheikh Hamdan. The plan aims to have 90% of transactions be digital across the public and private sectors by year-end.
What Changes for UAE Residents
Meanwhile, anyone using the new payment service must first onboard through Crypto.com’s platform. The exchange is licensed by Dubai’s Virtual Assets Regulatory Authority (VARA), giving it dual regulatory standing.
Following further CBUAE sign-off, the license also opens crypto payment integrations with Emirates Airlines and Dubai Duty Free.
Mohammed Al Hakim, Crypto.com’s UAE and Bahrain head, framed the win as a moat against rivals.
“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,” he said.
Crypto.com, therefore, sits as the sole gateway for state-fee crypto payments in the UAE. How quickly other VASPs pursue the same license will determine future competition.
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The post UAE Hands Crypto.com a Regulatory Moat Over Every Other VASP in the Country appeared first on BeInCrypto.
