Dubai Approves Crypto Donations for Charities

Dubai just made it easier to turn digital wealth into real-world impact. The city's Islamic Affairs and Charitable Activities Department approved a new system allowing charities to accept cryptocurrency donations, joining a growing global movement that raised $1 billion in digital giving last year.

The department, which oversees and licenses charitable institutions across Dubai, worked directly with local charities to set up the new donation channels. Officials say the system will boost transparency and protect donor funds while helping Dubai's charitable sector keep pace with modern finance.

"Launching the service to receive donations through virtual assets reflects our commitment to advancing the charitable work ecosystem in Dubai," said Mohammed Musbeh Dhaahi, the department's Executive Director for Charitable Work. He emphasized that the goal is making it simpler for donors to support approved charitable causes.

Dubai ranks second in the United Arab Emirates for charitable organizations, with the country hosting 535 public benefit groups total. Now each of those charities can tap into a donor base that's increasingly comfortable with digital assets.

The timing makes sense. Globally, charities collected $2.3 trillion in donations last year, with more than 60% of people worldwide giving to at least one cause. Digital currency donations have surged since 2017, when the anonymous Pineapple Fund donated 5,000 Bitcoin (worth $86 million then, $475 million today) to dozens of charities.

Over 70% of America's top 100 charities now accept cryptocurrency, recognizing that younger, tech-focused donors often prefer giving this way. The largest known crypto donation came in 2021, when Ethereum creator Vitalik Buterin sent $1.1 billion worth of tokens to COVID-19 relief efforts in India.

The Ripple Effect

Dubai's approval signals something bigger than just payment options. It shows how traditional institutions, including those focused on religious and charitable work, are adapting to meet donors where they are. By removing barriers between digital wealth and community support, the city is creating a bridge that could inspire similar programs across the Middle East and beyond.

The new system also addresses practical concerns, with built-in compliance measures and transparency tools that help charities manage these sometimes volatile assets responsibly.

When innovation meets generosity, everyone wins.