Crypto.com received a Stored Value Facilities license from the Central Bank of the UAE, becoming the first virtual asset service provider in the country approved to support crypto payments for government services.

The approval allows UAE residents to pay government service fees using digital assets through Crypto.com’s partnership with Dubai Finance. The platform will handle the payment layer, with settlements processed in UAE dirhams or Central Bank approved dirham-backed stablecoins.

The structure is designed to shield public agencies from crypto volatility. Residents can pay with supported digital assets, while government entities receive settlement through regulated fiat or approved stablecoin rails rather than holding crypto directly.

The move adds to the UAE’s broader effort to position itself as a regulated digital asset hub. Dubai established the Virtual Assets Regulatory Authority in 2022, creating a dedicated framework for virtual asset companies and helping draw major crypto firms to the emirate.

The policy also comes with limits. Dubai’s updated rules restricted privacy tokens such as Monero and Zcash from regulated crypto activity, keeping anonymity-focused assets outside the approved framework even as mainstream digital assets gain wider payment utility.