Dubai to Accept Crypto for Government Services in Global First

Under the framework, users will be able to pay service fees through the Crypto.com app, which will convert the crypto payments into Emirati dirhams (AED) in real time. The converted funds will then be transferred to the appropriate DOF accounts. This structure ensures the government receives payments in its official currency, minimizing exposure to the price volatility typically associated with cryptocurrencies.

The Dubai Department of Finance (DOF) is currently working with the Dubai Digital Authority (DDA) to ensure seamless technical integration of the new payment channel. Once implemented, it will be available through DubaiPay, the government’s centralized payment platform used for hundreds of services, including visa renewals, licensing, fines, and public utilities.

The collaboration with Crypto.com marks the first time a government has enabled crypto payments at such a scale. While other jurisdictions have explored blockchain technology and limited crypto payments for taxes or permits, Dubai’s model represents a comprehensive deployment integrated into routine administrative processes.

Crypto.com, which received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), has been expanding rapidly across the Middle East. The company recently launched a pilot program allowing crypto payments at select Emarat fuel stations in Dubai, making it one of the few regulated platforms actively working with public sector entities in the UAE.

The crypto payments initiative directly supports the Dubai Cashless Strategy, a multi-year plan launched to transform Dubai into a leading digital economy. The goal is to ensure that more than 90% of all government and private sector transactions are conducted via cashless channels by 2026.

Officials from the Executive Council of Dubai and the DOF emphasized during the summit that embracing innovative payment methods, including blockchain-based systems, would strengthen Dubai’s status as a leading smart city.

Although no live transactions have yet occurred under the new system, pilot testing is expected to begin in the second half of 2025, with a full rollout across most government departments targeted by early 2026.

One of the key challenges in enabling crypto payments for government services is ensuring compliance with financial regulations and consumer protection standards. Dubai’s Virtual Assets Regulatory Authority (VARA), established in 2022, provides the regulatory framework under which companies like Crypto.com operate.

By using regulated platforms that convert crypto into fiat before funds are received by the government, Dubai avoids direct custodianship of volatile digital assets. This reduces financial risk while still leveraging the benefits of blockchain technology, such as faster settlements, transparency, and accessibility for unbanked populations.

Dubai’s move is already being seen as a benchmark for other governments exploring digital currency integration. Countries like Brazil, the UK, and Singapore have all expressed interest in enabling crypto payments for limited services, but none have implemented a system at Dubai’s scale or scope.

Crypto.com expressed support for the partnership, highlighting its alignment with Dubai’s commitment to innovation and regulatory clarity. The company emphasized that enabling crypto payments for public services marks an important step in advancing secure and accessible digital finance infrastructure.

As Dubai continues to position itself at the forefront of financial innovation, the successful integration of cryptocurrency payments could mark the beginning of a broader transformation in how governments interact with their citizens and process public transactions in the digital age.