- Crypto.com received the license to offer regulated virtual asset services in Dubai in 2023.
- In April 2024, the company announced it had secured a limited license to offer crypto derivatives, following approval from the Dubai Virtual Assets Regulatory Authority (VARA).
- Globally, regulations around crypto have begun to tighten.
Taking a significant step toward digital finance, Dubai’s Department of Finance (DOF) has partnered with global cryptocurrency platform Crypto.com allowing residents and businesses to pay for government services via cryptocurrency using Crypto.com’s digital wallet which will then automatically be converted into Emirati Dirhams (AED) and transferred securely to Dubai Finance accounts.
The specific cryptocurrencies supported for this venture are yet to be announced; however, the initiative will rely on stablecoins to ensure smooth and secure transactions.
The initiative was announced at the Dubai FinTech Summit and the move emphasizes the emirate’s commitment to a cashless, tech-driven economy, fostering secure, efficient, and inclusive financial transactions through cryptocurrencies.
A significant step towards a more digital economy
This development is part of the broader Cashless Dubai Strategy, which aims to make over 90% of financial transactions digital by 2026. At the point this article is being written, 97% of Dubai government payment systems are already digital.
The new partnership is expected to strengthen this transition and contribute significantly to economic growth estimated at over AED 8 billion annually.
President and COO of Crypto.com, Eric Anziani, praised the initiative, saying, “The Government of Dubai has been a true global visionary in its cashless strategy. This marks the first comprehensive and holistic government-wide implementation of crypto payment digitization.”
Official Backing and Strategic Vision
High-ranking officials including Abdulla Mohammed Al Basti and Abdulrahman Saleh Al Saleh have endorsed the agreement, highlighting its alignment with the D33 Economic Agenda, Dubai’s strategic plan to become a global hub for innovation and technology.
Mohammed Al-Hakim, General Manager of Crypto.com in the UAE, emphasized the importance of the partnership in making crypto a part of everyday financial life, further solidifying Dubai’s role as a leader in the digital asset space.
The push for crypto adoption in Dubai extends beyond public services, with state-owned fuel company Emarat also partnering with Crypto.com, allowing customers to pay for fuel with digital currencies. In the private sector, projects like the under-construction Trump International Hotel and Tower have announced plans to accept crypto payments, signaling a broader shift toward mainstream use of digital assets—particularly in real estate.
Dubai’s Growing Influence in Fintech
It is safe to say that Dubai is not merely testing the waters with cryptocurrency; it’s in fact building a full-scale ecosystem where digital currencies play an active role in daily transactions. From paying utility bills to purchasing property, the city is creating real-world use cases for crypto, positioning itself as a serious global player in the fintech landscape.
As the world watches, Dubai’s bold strategy could reshape how governments interact with digital finance. Whether it sets a global standard or challenges the dominance of traditional financial hubs like the U.S; remains to be seen.
