UAE Approves Crypto Payments For Government Fees, Names Its First Licensed Platform
The United Arab Emirates has approved cryptocurrency payments for government fees, marking another step in the Gulf nation’s effort to integrate digital assets into its financial system.
In that context, Crypto.com became the first licensed platform authorized to process those payments after receiving a Stored Value Facilities license from the country’s Central Bank.
Under the system, residents and businesses will be able to pay government service fees using cryptocurrencies supported by the platform, which will convert the digital assets into UAE dirhams before the funds are transferred to government accounts, shielding public finances from crypto price volatility.
The approval places the UAE among the first countries to formally connect cryptocurrency payments with government services through a regulated framework.
Crypto.com’s UAE entity, Foris DAX Middle East FZE, received the license from the UAE central bank, allowing the company to provide regulated crypto payment services tied to government transactions. The move aligns with the UAE’s broader effort to position itself as a digital finance hub while expanding cashless payment infrastructure, Coin Central reported.
The development comes as the UAE continues building a regulated environment for digital assets during a period of wider geopolitical and economic instability across the Middle East. Governments in the Gulf have accelerated investments in fintech, digital payments and blockchain-backed systems as regional conflicts, sanctions regimes and disruptions to traditional banking routes have increased pressure on countries to diversify financial infrastructure.
Dubai has spent several years building crypto regulations intended to attract international firms while maintaining anti-money laundering controls. The emirate established the Virtual Assets Regulatory Authority (VARA) in 2022, creating one of the world’s first standalone regulators focused on the crypto industry. Since then, major exchanges and digital asset companies including Binance, OKX and Crypto.com have expanded operations in Dubai.
At the same time, regulators have tightened restrictions on privacy-focused cryptocurrencies. Dubai’s financial authorities introduced rules banning privacy tokens and anonymity-enhancing tools within regulated markets beginning Jan. 12, 2026. The restrictions cover assets such as Monero and Zcash, alongside crypto mixers designed to obscure transaction trails, according to reporting by BanklessTimes.
The UAE’s latest crypto payment move follows a series of agreements involving mainstream commercial services. In 2025, Emirates signed a preliminary agreement with Crypto.com to integrate cryptocurrency payments into its services, according to Reuters.
Government officials and regulators in Dubai have increasingly emphasized systems that allow digital asset transactions while ensuring settlements occur in dirhams or approved fiat-backed mechanisms. Under the newly approved payment structure, the UAE government itself will not directly hold cryptocurrency balances.
The licensing arrangement also gives Crypto.com a major foothold in the region’s public-sector payments market. At present, the company is the only virtual asset service provider licensed to facilitate crypto-based government fee payments in Dubai.
