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Can you pay with crypto in Dubai?

Only in limited cases. Under the Central Bank's rules, a business in the UAE outside the DIFC and ADGM financial free zones may accept a virtual asset as payment only if it is a dirham payment token from a licensed issuer, or a registered foreign payment token used to buy other virtual assets.[1] This page explains what that means for shops, AED stablecoins, the Digital Dirham, government fees and property.

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The Central Bank's payment token rules

The Central Bank of the UAE (CBUAE) Payment Token Services Regulation has been in force since 31 August 2024.[2] It covers three groups of services: issuing payment tokens, converting them, and holding and transferring them.[3] Nobody may provide these services in the UAE, or to people in the UAE, without a Central Bank licence or registration.[4]

  • A payment token is a virtual asset that aims to keep a stable value by reference to a value set out in the regulation, a type of stablecoin.[5]
  • A dirham payment token is a payment token denominated in UAE dirhams and issued by a licensed issuer.[6] Licensed issuers may issue dirham payment tokens only to people resident in the UAE.[7]
  • Holders can ask the issuer to redeem a payment token for its face value in money, which the issuer must do by the next business day unless the Central Bank allows otherwise.[8]
  • Algorithmic stablecoins and privacy tokens may not be issued, and services relating to them are prohibited.[9]

What this means at the till

Read literally, Article 2(7) means a merchant may not itself accept Bitcoin, Ether or similar cryptocurrencies as payment for goods or services, because they are neither of the two token types it lists.[1] This is our reading of the text, not legal advice. Providing payment services with virtual assets is also a Central Bank licensed activity,[10] and doing so without a licence is an offence.[11]

The regulation does allow a licensed custody and transfer service to let a merchant receive payment in payment tokens, under a merchant acquiring-style arrangement.[12] The sources we reviewed do not explain how payment services that convert crypto to dirhams before a merchant is paid fit these rules. If a shop, car dealer or watch seller offers to take crypto, the question to ask is which licensed provider handles the payment.

AED stablecoins

In February 2026, the state news agency WAM reported that the Central Bank had approved an AED-backed stablecoin, DDSC, to go live and enter its operational phase.[13] In our review we did not find a complete public list of licensed dirham payment token issuers. A stablecoin being described as "AED-backed" does not by itself show that its issuer is licensed.

The Digital Dirham

The Digital Dirham is not a cryptocurrency. It is currency in digital form issued by the Central Bank, and the 2025 Central Bank law says such currency is legal tender at full face value.[14] The first government financial transaction using the Digital Dirham was announced on 11 November 2025, as part of a pilot.[15] We found no official date for a general launch to the public.

Paying government fees with crypto

On 12 May 2025, Dubai Finance signed a memorandum of understanding intended to let people pay government service fees in cryptocurrency through a VARA-licensed platform.[16] Dubai Finance said the arrangement would start once the technical arrangements were finalised, and that payments would be converted to dirhams for its accounts.[17] We found no official confirmation that the service is live as of the check date.

Buying property with crypto

The Dubai Land Department (DLD) runs a real estate tokenisation project, which it describes as a pilot with VARA, the Dubai Future Foundation and the Central Bank that allows fractional ownership.[18] The pilot phase started on 19 March 2025.[19] The DLD said that all transactions in the May 2025 pilot were in UAE dirhams and that no cryptocurrency was used.[20]

Tokenised property is therefore a different thing from paying for property in crypto. We found no DLD source that sets out a general route for paying for Dubai property in cryptocurrency. If a seller or agent offers this, ask how the payment is converted and by which licensed provider.

Crypto ATMs

We found no official Central Bank or VARA list of licensed crypto ATM operators in Dubai. A crypto ATM is run by a service provider, so the licensing rules for exchange and conversion services may apply to the business behind it. See How to check a VARA licence.

Sources

Each note shows the source, its publisher, the date we last checked it and the status of the statement it supports. Status labels are explained in the editorial policy.

  1. Payment Token Services Regulation, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: Article 2(7) of the CBUAE Payment Token Services Regulation says no merchant or other person in the UAE selling goods or services may accept a virtual asset as payment unless it is a Dirham Payment Token issued by a Licensed Payment Token Issuer, or a Foreign Payment Token from a Registered Foreign Payment Token Issuer used to buy a virtual asset or virtual asset derivative. Article 2 excludes the Financial Free Zones.
  2. Article (1): Definitions, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: The CBUAE Payment Token Services Regulation, C 2/2024, is marked in force from 31 August 2024.
  3. Payment Token Services Regulation, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: The CBUAE regulation groups Payment Token Services into issuance, conversion, and custody and transfer.
  4. Payment Token Services Regulation, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: No person may perform a Payment Token Service in the UAE or directed to persons in the UAE unless licensed or registered by the CBUAE under the Payment Token Services Regulation.
  5. Article (1): Definitions, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: A CBUAE Payment Token is a virtual asset that purports to maintain a stable value by reference to the value specified in the regulation.
  6. Article (1): Definitions, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: CBUAE defines a Dirham Payment Token as a Payment Token denominated in AED, or by reference to an AED-denominated Payment Token, and issued by a licensed Dirham Payment Token Issuer.
  7. Article 2: Prohibitions on Activities and Promotions, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: A licensed Payment Token Issuer may issue Dirham Payment Tokens only to persons resident in the UAE.
  8. Article (21): Issuance and Redemption of Payment Tokens, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: On a tokenholder request, a Payment Token Issuer must redeem a Payment Token in fiat currency at its Dirham or foreign-currency face value by the next business day, unless CBUAE permits otherwise.
  9. Payment Token Services Regulation, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: The CBUAE Payment Token Services Regulation prohibits issuance of algorithmic stablecoins and privacy tokens, and services relating to them, in the UAE.
  10. Article (61) Licensed Financial Activities, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: Federal Decree-Law No. 6 of 2025 lists providing payment services using virtual assets as a financial activity subject to CBUAE licensing.
  11. Federal Decree-Law No. (6) of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: Under Article 170 of Federal Decree-Law No. 6 of 2025, unlicensed licensed-financial activity can be punished by imprisonment and a fine of AED 50,000 to AED 500 million, or either penalty.
  12. Payment Token Services Regulation, Article (1): Definitions, Central Bank of the UAE (CBUAE Rulebook), published 31 August 2024. Checked 13 October 2026. Confirmed Supports: The definitions in the CBUAE Payment Token Services Regulation say Payment Token Custody and Transfer may be a service performed to enable a Merchant to receive payments by Payment Token for goods or services under a merchant acquiring-style arrangement.
  13. CBUAE approves launch of UAE dirham-backed stablecoin 'DDSC' on ADI Chain, Emirates News Agency, published 12 February 2026. Checked 13 October 2026. Confirmed Supports: WAM reported in February 2026 that the CBUAE approved the AED-backed stablecoin DDSC to go live and enter its operational phase.
  14. Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, Central Bank of the UAE. Checked 13 October 2026. Confirmed Supports: Federal Decree-Law No. 6 of 2025 says currency notes and currency in digital form issued by CBUAE are legal tender at full face value.
  15. Ministry of Finance and Dubai Finance conduct first government transaction using Digital Dirham, Dubai Media Office, published 11 November 2025. Checked 13 October 2026. Historical Supports: The UAE's first government financial transaction using Digital Dirham was announced on 11 November 2025 as part of the Digital Dirham pilot phase.
  16. Dubai Finance signs MoU with Crypto.com to enable cryptocurrency payments for government fees in pioneering global move, Dubai Media Office, published 12 May 2025. Checked 13 October 2026. Historical Supports: On 12 May 2025, Dubai Finance signed an MoU intended to enable cryptocurrency payment of government service fees through a VARA-licensed platform.
  17. Dubai Finance signs MoU with Crypto.com to enable cryptocurrency payments for government fees in pioneering global move, Dubai Media Office, published 12 May 2025. Checked 13 October 2026. Historical Supports: Dubai Finance said the government-fee payment arrangement would be activated once necessary technical arrangements were finalised, with payments converted to AED for Dubai Finance accounts.
  18. Dubai Land Department - Real Estate Tokenization, Dubai Land Department. Checked 13 October 2026. Confirmed Supports: DLD describes its current Real Estate Tokenization Project as a pilot with VARA, Dubai Future Foundation and CBUAE that enables fractional ownership.
  19. Dubai Land Department Launches Pilot Phase of the 'Real Estate Tokenisation Project', Dubai Land Department, published 19 March 2025. Checked 13 October 2026. Historical Supports: DLD launched the pilot phase of its Real Estate Tokenisation Project on 19 March 2025 with VARA and Dubai Future Foundation through SandBox Real Estate.
  20. DLD launches the MENA's first tokenized real estate project through the 'Prypco Mint' platform, Dubai Land Department, published 25 May 2025. Checked 13 October 2026. Historical Supports: DLD said all transactions in the May 2025 tokenized-real-estate pilot were exclusively in UAE dirhams, with no cryptocurrency used during that pilot phase.