Crypto.com has become the first cryptocurrency platform in the UAE to receive an SVF license, opening up a channel for cryptocurrency-based payments for public services in Dubai.
Crypto.com, a cryptocurrency exchange, has just been granted a Store of Value (SVF) license by the Central Bank of the United Arab Emirates (CBUAE), allowing it to process cryptocurrency payments for public services in the country. This marks the first time a cryptocurrency platform in the UAE has received such a nationally binding license, signifying a significant step forward in the digital transformation of the Middle East region.
The license was granted to Foris DAX Middle East FZE, the regional subsidiary of Crypto.com, under a memorandum of Mnemonics (MoU) signed a year earlier with the Dubai Department of Finance (DOF). Under this agreement, Dubai residents can pay fees and public services through Crypto.com's managed SVF infrastructure, a Capital already licensed by the Virtual Asset Management Authority (VARA).
The Dirham stablecoin and the ambition for a cashless economy.
All settlement transactions will be conducted exclusively in UAE dirham or dirham- Peg stablecoins approved by the CBUAE. This demonstrates the UAE government's unwillingness to accept exchange rate volatility risks in the public service system, while also reflecting its commitment to the controlled development of digital currencies.
According to Crypto.com, the SVF infrastructure is designed to ensure transaction security and support Dubai's cashless strategy, which aims for a cashless economy.
Eric Anziani, Chairman and Chief Operating Officer of Crypto.com, stated that the SVF license demonstrates a high level of legal compliance and strengthens the company's position in the Middle Eastern cryptocurrency market. Mohammed Al Hakim, Chairman and CEO for the UAE and Bahrain, added that this is the first time users in the region have a unique option to pay for public services using cryptocurrency under clear legal standards.
The SVF license is valid nationwide, opening up the possibility of expansion beyond Dubai. Following further approvals from CBUAE, Crypto.com also plans to integrate cryptocurrency payments into the services of Emirates Airlines and Dubai Duty Free shops, steps that demonstrate its ambition to bring cryptocurrency into the mass consumer infrastructure in the UAE.
