Digital assets exchange Crypto.com has become the first crypto exchange to receive an in-principle approval for a Stored Value Facilities (SVF) license from the Central Bank of the United Arab Emirates.
In an announcement dated October 13, the company said the approval marked a key regulatory milestone that would enable it to provide digital payment solutions within the country under the Central Bank’s oversight.
Once the final license is granted, Crypto.com will be allowed to facilitate payments for government services and other commercial transactions using UAE dirhams or dirham-pegged stablecoins in compliance with the Stored Value Facilities framework.
The new offering would be powered by a proprietary conversion model that the company has developed to instantly translate digital assets into local currency equivalents.
The mechanism is designed to allow users to pay with any cryptocurrency held in their Crypto.com wallet.
But when the final settlement reaches merchants or government agencies, they receive it in dirhams or approved stablecoins.
According to the company, this model not only preserves the flexibility of digital payments for customers but also removes volatility concerns for recipients, since the funds are automatically converted at the point of transaction.
“Increasing everyday utility of digital assets is central to our vision at Crypto.com,” said Eric Anziani, President and COO of Crypto.com Group.
“This latest regulatory milestone is testament to both our commitment to responsible innovation, as well as to the UAE for seeing the promise of regulated digital commerce.”
Crypto.com will initially operate under a restricted wallet framework during the in-principle phase.
This means that while the core systems and services can be tested and fine-tuned, any changes to the business model will require prior approval from the Central Bank.
The company will also be subject to audits and inspections by the Central Bank’s Supervision, Market Conduct, and Anti-Money Laundering departments before the full license is granted.
During this provisional period, the firm will focus on meeting all technical and regulatory requirements.
The license remains valid for one year from the date of issuance, giving the company a defined timeframe to demonstrate system readiness, compliance with anti-money laundering, terrorism financing, and proliferation financing laws, and ensuring it is fully aligned with local record-keeping standards.
Crypto.com has been expanding its roots in the UAE
Crypto.com first entered the UAE market in 2022 when it designated Dubai as its regional hub for the Middle East and North Africa, and subsequently secured a Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority on November 14, 2023.
As of now, the company offers services such as brokerage, exchange, and lending in compliance with VARA’s framework; however, over the years, it has made its presence felt within the region not just through licensing wins but by embedding itself across key sectors of the UAE’s economy.
One of its standout collaborations came in the form of a partnership with the Dubai Department of Finance.
Announced in May, the agreement opened the door for cryptocurrency payments to be used in settling government service fees, aligning with the city’s broader ambitions to become a fully cashless society.
Later that summer, Crypto.com teamed up with the Dubai Land Department to work on building a blockchain-based infrastructure for virtual real estate investments.
Crypto.com has also signed a memorandum of understanding with Emirates Airlines and hopes to allow flyers to use Crypto.com Pay for booking flights and related services.
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