Dubai opens crypto route for fees

Dubai has cleared a regulated path for residents to pay government service fees using virtual assets, after Crypto. com’s UAE entity secured a Stored Value Facilities licence from the Central Bank of the UAE.

The approval allows Foris DAX Middle East FZE, Crypto. com’s local entity, to activate its partnership with Dubai Finance and process payments for Dubai government fees through a framework that converts or settles value in UAE dirhams or approved dirham-backed stablecoins. The move marks a significant expansion of virtual-asset use in public payments, though it does not amount to a blanket acceptance of unregulated cryptocurrencies across all UAE government services.

The licence makes Crypto. com the first virtual asset service provider in the country to obtain such authorisation from the central bank. Residents seeking to use the service will need to be onboarded through Crypto. com’s regulated platform, which already holds permissions from Dubai’s Virtual Assets Regulatory Authority. The arrangement places the company at the centre of a public-sector payments model designed to let users fund transactions with digital assets while ensuring government accounts receive settlement through regulated channels.

Dubai Finance had signed an agreement with Crypto. com in May 2025 to facilitate cryptocurrency payments for government service fees. That agreement, announced during Dubai’s wider push into digital payments, required central bank approval before operational rollout. The new licence provides the regulatory basis for moving from memorandum to implementation.

Officials have framed the initiative as part of the Dubai Cashless Strategy, which seeks to make 90 per cent of all transactions across government and private sectors cashless by 2026. The strategy is also linked to Dubai’s broader economic agenda, with digital payments expected to contribute more than AED8 billion annually to economic activity through reduced friction, wider fintech adoption and improved payment efficiency.

The system is intended to reduce volatility exposure for public finances. Users may initiate payments through digital assets, but final settlement will be conducted in dirhams or central bank-approved dirham-backed stablecoins under the Stored Value Facilities framework. That distinction is important, because government entities are not simply holding Bitcoin, Ether or other volatile tokens as payment receipts.

Crypto. com’s role is therefore closer to that of a regulated payments processor than a simple crypto exchange in this context. The platform will manage onboarding, compliance checks, transaction processing and conversion, while Dubai Finance receives funds through approved settlement rails. That structure reflects the UAE’s broader approach to digital assets: encouraging innovation, but within licensing boundaries that separate speculative trading from regulated financial infrastructure.

The approval also strengthens Dubai’s position in the competition among global financial centres seeking to attract blockchain firms, payment companies and digital-asset investors. The emirate created VARA in 2022 to supervise virtual asset activities and has since drawn a growing cluster of crypto exchanges, custody providers, tokenisation platforms and Web3 firms. The presence of a central bank-approved payments licence adds another layer to that regulatory architecture.

Consumer adoption will depend on fees, ease of use, eligible services and the number of residents willing to hold or transact in digital assets. The UAE has a large base of internationally mobile professionals, investors and entrepreneurs, making it a natural testing ground for cross-border payment products. Yet volatility, cyber risks, scams and uneven public understanding of crypto remain significant concerns.

Regulators have repeatedly warned residents to deal only with licensed entities and to verify approvals before transferring funds or signing contracts with digital-asset platforms. Those warnings have gained importance as fraudulent crypto schemes continue to exploit the language of official innovation, particularly through social media posts and fake investment promotions.

The licensing decision also has commercial implications beyond government services. Crypto. com has said the approval could support future integrations with Emirates Airline and Dubai Duty Free, subject to further central bank clearances. Emirates signed a preliminary agreement with Crypto. com in 2025 to add cryptocurrency payments, with the carrier targeting younger and tech-oriented customers as part of its digital transformation plans.

Dubai’s payment landscape has been moving steadily toward a broader cashless model, including digital wallets, card payments, QR-based systems, stablecoin-linked pilots and fintech partnerships. Public transport, real estate, education, retail and travel have all seen growing experimentation with digital payment channels. The latest approval gives that transition a more formal public-sector anchor.