The Central Bank of the United Arab Emirates has granted Crypto.com a Stored Value Facilities licence, enabling citizens to use cryptocurrency on its platform to pay government taxes in Dubai, the business announced on Monday.
According to the firm, while settlements are made in UAE dirhams or dirham-backed stablecoins authorised by the central bank under the SVF framework, the licence permits customers to fund payments in digital assets.
Earlier, on Friday, May 8, the UAE's Capital Market Authority (CMA) cautioned investors against doing business with unregistered organisations, websites, and trading platforms that operate within the nation. In an advisory issued by the UAE authorities, say before signing contracts or sending money, always make sure that a business or individual has a license from the appropriate government (MoHRE for labour, SCA for financial services).
With this permission now, Crypto.com's cooperation with Dubai's Department of Finance can be activated, enabling the exchange to offer digital asset payment services for government fees via its platform as part of Dubai's cashless payments policy.
Future payment integrations with Emirates Airlines and Dubai Duty Free may also be supported under the license, according to the business, though those services are still pending clearance from the UAE central bank.
ALSO READ: Investor Alert: UAE Authorities Warn Against Dealing With Unlicensed Entities; Check Details
Foris DAX Middle East FZE, a local Dubai company that trades as Crypto.com, is covered by the SVF permission. The business stated that the license will enable it to begin crypto-funded payment integrations with Emirates Airlines and Dubai Duty Free, expanding the same digital asset-to-dirham settlement mechanism into commercial payments, subject to additional central bank approvals.
By the time of publication, Cointelegraph had not heard back from the Central Bank of the United Arab Emirates or Crypto.com.
In the UAE, where it already has a Virtual Asset Service Provider license from VARA and markets its platform as an institutional-grade, compliance-focused forum for digital assets, the new permission expands Crypto.com's regulatory reach.
The company has been developing a similar regulated profile outside of the United Arab Emirates. This includes obtaining a license to operate under the European Union's Markets in Crypto Assets (MiCA) regime and receiving conditional approval from the US Office of the Comptroller of the Currency for a national trust bank charter, which would enable it to function as a qualified custodian of digital assets.
As part of a larger plan to combine more regulatory monitoring with an increasing number of cryptocurrency-related trading and payment products, Crypto.com is simultaneously moving into event-based derivatives and prediction markets through a licensed US subsidiary.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
