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- Crypto.com secures the UAE’s SVF license, enabling regulated crypto payments and automatic AED conversions.
- The approval confirms Crypto.com meets Central Bank standards to launch a licensed digital payments platform.
- The UAE advances toward a regulated crypto economy with the Digital Dirham and AE Coin stablecoin initiatives.
Crypto.com has been granted a Stored Value Facilities (SVF) license by the Central Bank of the United Arab Emirates. The license will enable the firm to provide controlled digital payment services, such as the ability to pay government charges using crypto. After final compliance checks, each transaction will automatically be converted to UAE dirhams or AED-pegged stablecoins.
The Foris DAX Middle East FZ-LLC, the regional company of Crypto.com, has been given the license. The authorization is evidence that the company fulfills the initial technical and financial criteria of the Central Bank. After the final step, Crypto.com will be permitted to run a fully licensed SVF platform in the UAE.
Crypto.com to Operate Under Central Bank Compliance Rules
Within this system, citizens can pay Dubai Government amounts in cryptocurrencies. The payment of digital assets will be transformed into local currency and paid by government departments in dirhams. The platform will model controlled mediums to curb the usage of virtual assets and their abuse.
Crypto.com will operate as a Restricted Wallet Provider during the In-Principle Approval phase. The company should not violate any of the Central Bank requirements and should consult with it prior to making any changes, whether operational or structural. This standard provides transparency and traceability for all customer transactions within the UAE’s regulatory framework.
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Crypto.com is already a Virtual Asset Service Provider (VASP) licensed by the Virtual Assets Regulatory Authority (VARA) of Dubai. Earlier this year, VARA broadened the license of the company to cover derivatives. However, this will enable Crypto.com to provide futures, perpetual swaps, and CFDs to qualified investors and institutions.
Source: Crypto.com
Global Standards Meet UAE’s Digital Financial Transformation
The company is also enhancing its international compliance history. Crypto.com has obtained SOC 1 Type II and SOC 2 Type II attestation over its U.S. custodianship operations. These certifications serve to demonstrate that the company adheres to rigorous standards in its approach to data security, operational control, and financial reporting.
However, the UAE is on the verge of transitioning to a digital financial ecosystem. In 2025, the Central Bank will launch the Digital Dirham, a Central Bank Digital Currency (CBDC). The project will focus on the modernization of the payment systems and financial efficiency.
In the private sector, a group of International Holding Company, Abu Dhabi Developmental Holding Company, and First Abu Dhabi Bank is developing AE Coin, a dirham stablecoin that is approved by the Central Bank. These investments, along with the milestone of Crypto.com, place the UAE as a front-runner in regulated crypto use and digital payments.
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