Hubpay has joined forces with Aquanow to launch UAE’s first fully regulated crypto payment gateway tailored for businesses. It enables enterprises across diverse sectors to securely accept crypto payments.
Pioneering Regulated Crypto Payments in the UAE
Hubpay is a cross-border payments platform while Aquanow provides crypto infrastructure for financial services.
Aquanow ME FZE operates under the regulation of Dubai’s Virtual Asset Regulatory Authority (VARA), while Hubpay is overseen by the Financial Services Regulatory Authority (FSRA) within the Abu Dhabi Global Market (ADGM).
This collaboration leverages both entities’ regulatory approvals to offer a compliant and robust crypto payment solution for UAE businesses, facilitating global transactions with enhanced security and efficiency.
The introduction of this regulated crypto payment gateway is timely, aligning with the UAE’s strategic vision to position itself as a global hub for fintech innovation and digital assets. The nation has witnessed a remarkable 42% year-on-year growth in cryptocurrency transactions, underscoring the escalating demand for digital payment solutions. By integrating Aquanow’s advanced digital asset infrastructure with Hubpay’s established payment network, users—both local and international—can transact in cryptocurrencies within a familiar and secure payment environment.
Kevin Kilty, CEO and Founder of Hubpay, said: “Stablecoins are a game-changer, combining the security of traditional currencies with the speed of digital assets. By integrating Aquanow’s infrastructure with our regulated network, we’re empowering businesses to transact seamlessly in both fiat and crypto—advancing the UAE’s agenda to drive economic diversification, foster fintech innovation, and position itself as a global hub for digital assets.”
Phil Sham, CEO of Aquanow, mentioned taht cryptocurrency is no longer just an investment tool; it’s a practical, efficient means of conducting high-value transactions.”
Implications for the Real Estate Sector and SMEs
The real estate industry is likely to gain substantially from this development. In 2024, the UAE’s resale property profits soared to $16.33 billion, reflecting robust market growth. The ability to complete property transactions using cryptocurrencies offers advantages such as expedited settlement times, reduced transaction fees, and increased financial accessibility for international buyers.
Beyond real estate, SMEs will also benefit from the crypto payment gateway by streamlining cross-border payments, lowering transaction costs, and improving cash flow management. The reduction in settlement delays and minimization of currency conversion fees enable SMEs to expand their customer base.
Regulatory Landscape in the UAE
The UAE has been proactive in establishing a comprehensive regulatory framework for crypto. In 2020, the Securities and Commodities Authority (SCA) issued Decision No. (23) concerning the regulation of crypto assets, governing their offering, issuance, listing, and trading within the country. This regulation mandates that entities engaging in crypto asset activities obtain the necessary approvals and licenses from the SCA, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) controls.
Further enhancing the regulatory environment, the UAE Cabinet introduced Cabinet Resolution No. (111) of 2022, which provides a dedicated framework for virtual assets and related service providers. This resolution designates the SCA as the primary regulator, while also involving local licensing authorities to promote a coordinated regulatory approach across the UAE, including free zones. It prohibits any person from engaging in virtual asset activities without obtaining the requisite approval and license from either the SCA or the relevant local licensing authorities.
UAE’s Emergence as a Crypto Hub
The UAE’s strategic initiatives have positioned it as a burgeoning hub for cryptocurrency and blockchain technology. Free zones such as the Dubai Multi Commodities Centre (DMCC) and the Dubai International Financial Centre (DIFC) offer tax benefits, funding opportunities, and clear regulatory frameworks, attracting virtual asset investors worldwide.
In August 2024, Tether announced plans to introduce a stablecoin pegged to the UAE dirham, catering to the growing demand for Gulf currencies and offering alternatives to the U.S. dollar. This move underscores the UAE’s appeal as a destination for crypto-related ventures and its commitment to integrating digital assets into its financial ecosystem.
Moreover, in September 2024, Standard Chartered launched digital asset custody services in the UAE, with Brevan Howard Digital as its inaugural client. The bank’s decision to launch this service in the UAE was influenced by the country’s balanced approach to digital asset adoption and its robust regulatory framework.
While the UAE has made significant strides in fostering a crypto-friendly environment, security remains a paramount concern. Earlier this month, the FBI accused North Korean-linked hackers of stealing $1.5 billion worth of Ethereum from Dubai-based crypto exchange Bybit. This incident highlights the importance of stringent security measures and regulatory oversight to protect investors and maintain the integrity of the financial system.
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