Foris DAX Middle East FZE, the UAE entity of the cryptocurrency exchange Crypto.com, has received the Stored Value Facilities (SVF) license from the Central Bank of the UAE.

 

The announcement, made on Monday, marks a notable milestone for the crypto exchange, as it is the first Virtual Asset Service Provider (VASP) in the Emirates to receive the license.

 

 

With the Stored Value Facilities license now secured, Crypto.com can partner with the Dubai Department of Finance, allowing UAE residents to pay government fees with virtual assets, with all transactions settled in UAE dirhams or other stablecoins approved by the UAE central bank.

 

As the only virtual asset provider holding the SVF license in the Emirates, any other entity seeking to offer virtual asset payment services in the region will first need to be onboarded by Crypto.com.

 

“To be the first VASP to receive this license is an incredible achievement and proves our strong commitment to compliance and to advancing the regulated digital assets ecosystem in the UAE,” said Eric Anziani, President and COO of Crypto.com.

 

“We are continuing to expand our presence in this forward-thinking, digitally savvy market and remain committed to offering innovative products and services that are convenient and seamless for digital asset holders,” he added.

 

The new SVF license comes about a year after Crypto.com received a full VASP license from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing it to offer crypto derivatives products, including futures, perpetual swap contracts, and contracts for difference (CFDs).

 

Derivatives trading continues to grow, accounting for about 70-75% of total crypto trading volume. In 2025, global crypto derivatives trading volume reached approximately $85.7 trillion, with analysts projecting the market to continue expanding significantly.

 

The State of Crypto in the United Arab Emirates

The UAE, over the last few years, has emerged as one of the foremost crypto jurisdictions. According to the World Crypto Rankings 2025 report by Bybit and DL Research, the UAE leads the entire Middle East and North Africa region in crypto adoption, ranking fifth globally behind Singapore, the United States, Lithuania, and Switzerland.

 

To position itself as a major crypto hub, the UAE has introduced several crypto-friendly policies, including exemptions from VAT and personal income tax on virtual assets and crypto trading. 

 

The country has also passed legislation that brings all virtual asset entities, including DeFi protocols, stablecoins, tokenized real-world assets, decentralized exchanges, wallets, bridges, and supporting blockchain infrastructure, under the authority of the Central Bank. The move effectively gives the digital asset ecosystem a recognized legal framework under federal law.

 

 

Dubai’s digital asset regulator has instructed KuCoin and all entities associated with the exchange to cease their crypto operations in the Emirates, stating that the platform operated an illegal, unlicensed virtual asset service.

 

In a recent news alert, the Virtual Assets Regulatory Authority (VARA), Dubai’s digital assets regulator, warned residents about the unlicensed crypto operations of KuCoin and its affiliated entities: Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin EU GmbH.

 

Image credit: VARA

 

According to VARA, KuCoin and its entities lacked the necessary regulatory approvals to operate in the region and that they misled the public about their licensing status.

 

"In accordance with Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must be licensed to operate legally in this jurisdiction. KuCoin does not meet these legal requirements and is not authorised to provide any virtual asset services in or from Dubai," the regulator said.

 

Since KuCoin lacked the regulatory approval required to operate in the United Arab Emirates, the regulator clarified that any promotion, advertising, or solicitation related to the exchange and its virtual asset products was illegal.

 

Thus, KuCoin has been instructed to cease and desist from all unlicensed virtual asset activities in the region. The regulator also urged Dubai residents and investors to consult its public register of licensed and approved VASPs before engaging with any platform.

 

 

Kucoin’s Rough Edge With Regulatory Compliance

KuCoin has had its own battles with regulatory compliance in recent years. In February 2024, Austria’s Financial Market Authority temporarily restricted the exchange from onboarding new customers to its platform.

 

According to the regulator, KuCoin lacked key compliance personnel responsible for anti-money laundering (AML), counter-terrorist financing (CTF), and sanctions monitoring. The exchange was therefore found to be non-compliant with regulatory obligations under the EU crypto framework. As a result, KuCoin had to temporarily halt its operations until full compliance was achieved.

 

In 2025, Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) imposed a $19.6 million fine on KuCoin, accusing the exchange of serious anti-money laundering (AML) violations and failing to register as a money services business. The fine came three years after the exchange was permanently banned in Ontario.

 

KuCoin also had to exit the U.S. market in 2025 after being accused of operating an unlicensed money-transmitting business and other anti-money-laundering violations. It paid a $300 million fine and agreed to remain out of the U.S. market for at least two years.