Dubai government to accept crypto payments through Crypto.com partnership

Dubai's Department of Finance announced a partnership with crypto platform Crypto.com that will 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 government entities" will be able 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 innovative payment framework," it added. 

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

Dubai Finance did not immediately respond 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 leading digital city. The strategy aims to reach 90% cashless transactions across Dubai's public and 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 offer regulated virtual asset service activities in 2023. Last month, the company said Dubai's virtual asset regulatory body had also issued a limited license to offer derivatives.

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