Crypto.com Secures UAE SVF Licence for Crypto Payments
Crypto.com has achieved a significant milestone in the UAE. It’s the first Virtual Asset Service Provider (VASP) to get In-Principle Approval (IPA) for a Stored Value Facilities (SVF) license.This approval allows the company to facilitate digital payments, such as government fees, using cryptocurrencies.
Under the SVF framework, payments made with digital assets will be automatically converted into UAE dirhams or dirham-pegged stablecoins. This conversion ensures seamless transactions for residents and government entities. The full license will be issued after final compliance checks.
Crypto.com’s progress in the UAE is notable. It already holds a VASP license from Dubai’s Virtual Assets Regulatory Authority (VARA). This license was recently expanded to include derivatives, like futures and swaps, for eligible investors.
The UAE is also pushing forward with digital currencies. The Central Bank of the UAE (CBUAE) plans to launch the Digital Dirham, a Central Bank digital Currency (CBDC), by Q4 2025.Additionally, a consortium including International Holding Company (IHC), Abu Dhabi Developmental Holding Company (ADQ), and First Abu Dhabi Bank (FAB) is developing AE Coin, a dirham-backed stablecoin. This stablecoin aims to enhance secure and efficient digital transactions.
These developments highlight the UAE’s commitment to integrating digital currencies into its financial system.Crypto.com’s SVF approval is a step towards this goal, enabling more regulated and accessible digital payment options.
