Dubai government to simply accept crypto through Crypto.com partnership

Dubai’s Department of Finance announced a partnership with crypto platform Crypto.com that can allow government service fees to be paid with large-cap cryptocurrencies.

The memorandum of understanding between Dubai government officials and Mohammed Al Hakim, president of Crypto.com UAE, was signed Monday on the sidelines of the Dubai FinTech Summit.

Once technical arrangements for the initiative are finalized, individuals and “businesses customers of presidency entities” will give you the chance to pay service fees through digital wallets on Crypto.com, Dubai Finance said.

“The platform will securely convert these payments into Emirati dirhams and transfer them to Dubai Finance accounts, ensuring a streamlined, secure, and modern payment framework,” it added. 

In a press release to CNBC, a Crypto.com spokesperson added that the agreement will allow anyone inside Dubai to pay for government-provided utility services, including parking, with large-market-cap crypto assets.

Dubai Finance didn’t immediately reply to a request for comment from CNBC. 

Government officials said in a press release that the partnership will help achieve the “Dubai Cashless Strategy,” which seeks to solidify Dubai’s status as a number one digital city. The strategy goals to succeed in 90% cashless transactions across Dubai’s private and non-private sectors by 2026.

Crypto.com’s Al Hakim called the initiative a “truly global first programme.”

Crypto.com first received a license for its Dubai entity to supply regulated virtual asset service activities in 2023. Last month, the corporate said Dubai’s virtual asset regulatory body had also issued a limited license to supply derivatives.

Dubai has been betting on the crypto industry for years as a part of its ambition to develop into a worldwide tech hub.