Crypto.com’s UAE SVF license approval marks a historic first for cryptocurrency exchanges in the United Arab Emirates, and it’s happening right now. On October 13, the Central Bank of the UAE granted in-principle approval for a Stored Value Facilities license to Crypto.com, making it the first digital assets exchange to achieve this regulatory milestone. This UAE Central Bank crypto approval enables the platform to offer digital payment solutions for government services and also for commercial transactions using dirhams or dirham-pegged stablecoins. The Crypto.com license approval introduces regulated crypto payments in the UAE through a proprietary conversion model that was developed by the company.
UAE Central Bank Approval Paves Way for Regulated Crypto Payments
The Crypto.com UAE SVF license operates through a conversion mechanism that instantly translates digital assets into local currency equivalents. Users can pay with any cryptocurrency that they hold in their Crypto.com wallet, and when the final settlement reaches merchants or government agencies, they receive it in dirhams or dirham-pegged stablecoins.
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The UAE Central Bank designed this crypto approval to remove volatility concerns for recipients since the system automatically converts the funds right at the point of transaction.
Eric Anziani, President and COO of Crypto.com Group, stated:
“Increasing everyday utility of digital assets is central to our vision at Crypto.com. 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.”
Restricted Operations and Compliance Requirements
The Crypto.com UAE SVF license requires initial operations under a restricted wallet framework during the in-principle phase. The company can test and fine-tune core systems and services at this time, though the Central Bank must approve any changes to the business model prior to implementation.
The Central Bank’s Supervision, Market Conduct, and also Anti-Money Laundering departments will audit and inspect the company before granting the full license. The license remains valid for one year from the date of issuance, and the company must demonstrate compliance with anti-money laundering, terrorism financing, and proliferation financing laws during this period.
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Expanding UAE Partnerships
The Crypto.com license approval builds on existing partnerships that the company has established across the UAE. The Dubai Department of Finance announced an agreement in May, and this opened the door for the company to use cryptocurrency payments to settle government service fees. The exchange also partnered with the Dubai Land Department on blockchain infrastructure for virtual real estate investments and signed a memorandum of understanding with Emirates Airlines.
The regulated crypto payments in the UAE framework addresses security concerns through Central Bank oversight and provides a clear pathway for mainstream adoption of digital payments in the region. At the time of writing, Crypto.com’s UAE SVF license positions the exchange to bridge the gap between digital assets and traditional commerce under the Central Bank’s regulatory framework.