Crypto.com has become the first VASP in the UAE to receive IPA for SVF license, enabling regulated digital payments — like government fees in crypto — automatically converted into UAE dirhams or AED-pegged stablecoins once final compliance checks are completed.
Summary
- Crypto.com’s SVF approval enables residents to pay Dubai Government fees using digital assets, automatically converted into UAE dirhams or dirham-pegged stablecoins.
- The approval builds on Crypto.com’s established framework in the UAE, which includes a VASP license from Dubai’s VARA.
- Meanwhile, the UAE is advancing digital finance with the upcoming Digital Dirham CBDC (launching Q4 2025) and a dirham-backed stablecoin developed by a consortium including IHC, ADQ, and FAB, aimed at secure and efficient digital transactions.
Crypto.com, operating through Foris DAX Middle East FZ-LLC, has become the first Virtual Asset Service Provider in the UAE to receive In-Principle Approval from the Central Bank of the UAE for a Stored Value Facilities (SVF) license. The IPA signifies regulatory acknowledgment of the company’s readiness to operate digital payment services, pending completion of final technical and compliance checks before the full license is issued.
Under the SVF framework, Crypto.com will enable residents to pay Dubai Government fees using digital assets. Payments made with digital currencies will be automatically converted into UAE dirhams or dirham-pegged stablecoins via the company’s VARA-licensed platform, with settlements delivered to government entities in local currency.
During the IPA phase, Crypto.com will operate as a Restricted Wallet Provider, adhering to all conditions set by the Central Bank and seeking prior approvals for any modifications to its business operations.
Crypto.com continues to strengthen its regulatory footprint
This regulatory development builds upon Crypto.com’s established framework in the UAE, which already includes a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority. In March, VARA extended Crypto.com’s VASP license to cover the offering of derivatives, enabling the company to provide products such as futures, perpetual swaps, and CFDs to eligible institutions and qualified investors in the region.
The SVF milestone also comes on the heels of Crypto.com’s recent achievement of SOC 1 Type II and SOC 2 Type II attestations for its U.S.-based custody services, which provide independent verification of the company’s financial reporting controls and operational security.
UAE accelerates digital currency push
Meanwhile, the UAE is making significant strides in integrating digital currencies into its financial ecosystem. The CBUAE has introduced the Digital Dirham, a Central Bank Digital Currency set to launch in Q4 2025.
In parallel, the private sector is also advancing in the digital currency space. A consortium comprising International Holding Company, Abu Dhabi Developmental Holding Company, and First Abu Dhabi Bank is developing a dirham-backed stablecoin, AE Coin. This stablecoin has received regulatory approval from the CBUAE and is poised to facilitate secure, stable, and efficient digital transactions.
