In a significant move, Crypto.com has secured crucial preliminary approval in Dubai. This approval is for a Stored Value Facility (SVF) license. It supports Dubai Government fee payment services digitally. Therefore, this new system will soon be used by the people of UAE. All settlements will only take place in dirhams or dirham-pegged stablecoins. This is an important regulatory milestone for the firm.
VARA-Licensed Platform to Revolutionize Public Payments
Once the final license has been received, the company can start providing services. These online payment services will cater to all UAE citizens. The model uses any digital assets, which is an innovation for customers. Namely, they can pay directly through the VARA-accredited platform. This guarantees that there is complete conformity and adherence to all local regulations.
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The platform will automatically transform the customer’s digital assets. It converts them immediately to UAE Dirhams. In addition, it implements the transaction through a digital wallet. This wallet is licensed by the Central Bank of the UAE. This automated service makes the payment very easy for the user.
Meanwhile, a settlement will be provided to the government organizations of Dubai. They will get immediate funds in UAE Dirhams. Or they can be made in dirham pegged stablecoins. This ensures that the government’s departments have stable, predictable fiat currency. This mechanism gets rid of direct crypto volatility risk.
Crypto.com President and COO Eric Anziani commented on the news. He said that making digital assets more useful in everyday life is the main idea. It fits in seamlessly with the company’s core vision. Therefore, this regulatory milestone is a major indicator of their commitment. It fully emphasizes that they are concerned with responsible innovation.
He also applauded the vision of the UAE. Indeed, he said the vision for regulated e-commerce is strong. This regulatory environment is very supportive of growth. This recent move further strengthens the firm’s commitment to the region.
Regulatory Compliance Paves Way for Digital Commerce Accessibility
Alain Yacine, President of Middle East & Latin America, also presented. He praised the vision of the Central Bank of the United Arab Emirates to a great extent. He saw their desire to work together in creating new structures. Typically, this action creates acquiescence opportunities for trading purposes. This relationship between regulator and innovator must exist.
Mohammed Al Hakim, President of Foris Dax Middle East FZE, was also proud. His firm participates in the approval process. He said consumers and merchants are both looking forward to online shopping. Hence, being the first VASP to get this approval is an enormous success.
He emphasized their safety and security first. They are keen to collaborate extensively with regulators and partners. Such a partnership will further ensure accessibility to the initiative. Compliance will continue to be the centrepiece of the operation. This assures all market participants of stability.
In this first phase, the company is a Restricted Maintenance Provider of Wallets. This status is according to the conditions provided by the Central Bank. Therefore, they have to seek prior permission for any changes in the business model. The strict controls ensure controlled, safe deployment.
Finally, all requirements must be satisfied for the final license to be awarded. These include technical and regulatory requirements in their entirety. On-site inspection is necessary for final issuance. This will be done by the departments of the Central Bank. They will ensure system readiness in its entirety before giving the final approval.
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Author: NixCoin