Crypto.com Achieves Milestone in the UAE
Crypto.com has taken a significant step in the UAE by becoming the first Virtual Asset Service Provider (VASP) to obtain In-Principle Approval (IPA) for a Stored Value Facilities (SVF) license from the Central Bank of the UAE. This new authorization will enable the company to facilitate regulated digital payments for government-related fees, allowing these transactions to be seamlessly converted into UAE dirhams or AED-pegged stablecoins upon the completion of required compliance checks.
Enhancing the Payment Landscape
Operating under its subsidiary, Foris DAX Middle East FZ-LLC, Crypto.com is set to enhance the payment landscape in Dubai by enabling digital currency payments to local government bodies. Under the SVF licensing framework, users can pay fees using cryptocurrencies, which will be instantaneously exchanged into the local currency or stablecoins on their platform licensed by the Virtual Assets Regulatory Authority (VARA). As part of the IPA stage, Crypto.com will function as a Restricted Wallet Provider, adhering strictly to all Central Bank regulations and obtaining necessary approvals for any operational changes.
Existing Framework and Recent Achievements
This milestone is built upon Crypto.com’s existing framework in the UAE, which already includes a valid VASP license obtained from VARA. Earlier this March, VARA enriched Crypto.com’s VASP license by allowing the provision of derivatives, such as futures, perpetual swaps, and CFDs, catering to qualified investors and institutions in the area.
Additionally, Crypto.com recently achieved SOC 1 Type II and SOC 2 Type II certifications for its custody services based in the United States, showcasing third-party assurance of the company’s reporting and operational security standards.
Broader Digital Currency Integration in the UAE
On a broader scale, the UAE is substantially advancing its digital currency integration within its financial system. The Central Bank of the UAE (CBUAE) is set to launch the Digital Dirham, a Central Bank Digital Currency, by the fourth quarter of 2025. The private sector is also innovating in this arena—as showcased by a consortium that includes the International Holding Company, the Abu Dhabi Developmental Holding Company, and the First Abu Dhabi Bank, which is developing AE Coin, a stablecoin backed by the dirham that has already secured regulatory clearance from the CBUAE, aimed at ensuring safe and efficient digital transactions.
