Foris DAX Middle East FZ-LLC (trading as Crypto.com) announced that it has received In-Principle Approval (IPA) from the Central Bank of the United Arab Emirates (CBUAE) for a Stored Value Facilities (SVF) license, claiming it becomes the “first” Virtual Asset Service Provider (VASP) in the UAE to obtain such approval.
After receiving the final license, the firm said it will be able to provide digital payment services for Dubai Government fees to residents in the UAE, with financial settlements carried out in UAE dirhams or dirham-pegged stablecoins via the Stored Value Facilities framework.
Using an model developed by the firm, clients will be able to make payments using any digital assets they own via the VARA-licensed platform, which will then convert the assets into UAE dirhams and finalize the transfer imemdiately through the digital wallet that has been licensed by the Central Bank.
Meanwhile, Dubai government entities are to receive the settlements in UAE dirhams or dirham-pegged stablecoins.
Eric Anziani, President and COO of Crypto.com Group:
“Increasing everyday utility of digital assets is central to our vision at Crypto.com. This latest regulatory milestone is testament to both our commitment to responsible innovation, as well as to the UAE for seeing the promise of regulated digital commerce.”
Mohammed Al Hakim, President and GM of UAE of Foris Dax Middle East FZE also said:
“Both consumers and merchants in the UAE are eager to engage in digital commerce and we are incredibly proud to be the first VASP to receive In-Principle approval for an SVF licence in-market.”
During this stage, the firm stated that it will operate as a Restricted Wallet Provider, in accordance with the conditions set by the Central Bank, and will obtain “prior approvals for any modifications to its business model.”
The company said that it now reaffirms its commitment to Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) obligations, and “record-keeping requirements, in line with the UAE’s applicable legislation and international standards.”
The final license is to be granted after relevant technical and regulatory requirements are satisfied and after the on-site inspection by the Supervision, Market Conduct, and AML departments of the Central Bank of the UAE “to verify system readiness prior to the final issuance.”
As clarified in the announcement from Crypto.com, the In-Principle Approval remains valid for 1 year from the official date of issuance.