Crypto.com’s UAE unit won a central bank license, opening a new route for government crypto payments tied to Dubai public-sector fees.
Singapore-based cryptocurrency platform Crypto.com can now start offering crypto payments for Dubai government fees after getting a stored-value license from the UAE central bank.
The company said in today’s blog post that its UAE entity, Foris DAX Middle East FZE, received a Stored Value Facilities license from the Central Bank of the UAE, making it the “first Virtual Asset Service Provider (VASP) in the Emirates to receive this license.”
This means UAE residents will be able to pay some government fees with virtual assets through Crypto.com.
- It doesn’t mean though that Dubai government departments are simply taking Bitcoin, Ethereum or any other altcoin directly onto their balance sheets.
- Crypto.com said all financial settlements will still be made in UAE dirhams or central bank-approved dirham-backed stablecoins through the SVF framework.
Read also: Dubai Regulator Issues World’s First Crypto Asset Issuance Guidance
Dubai Crypto Payments Still Need Guardrails
Currently, government payments are handled through traditional payment rails and settled in local currency. With this setup, the user can start from crypto even though the final settlemen would still be the same.
The license also lets Crypto.com activate its partnership with the Dubai Department of Finance, according to the announcement. The company said users who want to access these crypto payment services in the UAE will need to be onboarded through its VARA-licensed platform.
- Although Crypto.com can move ahead with Dubai government fee payments, its other planned crypto payment deals aren’t live yet.
- For instance, Crypto.com added that the SVF license will also let it start crypto payment integrations with Emirates Airlines and Dubai Duty Free.
- But those services still need approval from the Central Bank of the UAE before they go live.
The company didn’t clarify when that approval could come or when the services may become available.
Read more: Pakistan Allows Banks to Open Accounts for Licensed Crypto Companies
