Crypto.com
has received In-Principle Approval from the Central Bank of the United Arab
Emirates to operate under a Stored Value Facilities (SVF) license. It brings the exchange a step closer to processing stablecoin and dirham payments for
Dubai government services.
The approval, which was granted to Foris DAX Middle East FZ-LLC, allows the exchange to expand into regulated digital
payments in the region once final authorization is granted.
Digital assets meet tradfi in London at the fmls25
Central Bank-Licensed Digital Wallet
According to
the company, residents will be able to pay Dubai government fees using digital
assets held on Crypto.com’s platform. The service will convert the assets into
UAE dirhams (AED) during checkout and settle transactions via a Central
Bank-licensed digital wallet. Government departments will receive funds in
dirhams or dirham-pegged stablecoins.
“Increasing everyday utility of digital assets is central to
our vision at Crypto.com,” commented Eric Anziani, President and COO of Crypto.com
Group. “This latest regulatory milestone is a testament to both our commitment to
responsible innovation, as well as to the UAE for seeing the promise of
regulated digital commerce.”
Once full
approval is granted, the company will reportedly facilitate crypto-to-fiat
payments within a Central Bank-regulated framework—marking one of the first
large-scale integrations of digital assets into public service payments in the
Gulf.
The system reportedly enables users to pay government fees using any digital assets held on
Crypto.com’s platform. During checkout, the platform converts the crypto holdings into UAE dirhams and completes the transaction using a Central
Bank-licensed digital wallet.
According to the firm, Dubai
government departments will receive the settlement directly in dirhams or
stablecoins pegged to the local currency, ensuring no volatility exposure
during the transaction.
Regulatory
Oversight and Compliance
Dubai’s
Virtual Assets Regulatory Authority already oversees trading and custody
activity, while the Central Bank now oversees digital payment mechanisms
through SVF licensing.Crypto.com’s
progress suggests that government-linked payment use cases for stablecoins may
soon be enabled.
Keep reading: New CFTC License Will Allow Crypto.com to Offer Margin Derivatives in the US
Crypto.com has been aggressively expanding its operations globally. Last month, the crypto firm announced that it had secured U.S. regulatory approval to offer margined derivatives trading on cryptocurrencies
and other asset classes.
The approval followed an amendment to the company’s
designated contract market license, allowing its U.S. affiliate,
Crypto.com Derivatives North America, to operate a full suite of
Commodity Futures Trading Commission derivatives licenses.
Additionally, the exchange is focusing on boosting its
institutional offerings. Recently, multi-asset wallet firm Exodus Movement partnered with Crypto.com Custody Trust Company to manage a portion of its digital
assets. The collaboration aims to introduce additional security layers and
regulatory oversight to complement Exodus’ existing self-custody
infrastructure.
This article was written by Jared Kirui at www.financemagnates.com.
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