By obtaining the crypto license in Dubai you will be able to establish your cryptocurrency company on the continent. In this case, you can be part of the numerous entrepreneurs who opt for this type of industry, which is a trend worldwide. Furthermore, digital currencies are commonly used for all types of transactions around the world.
In this article, you will learn in detail what cryptocurrency is and how to get crypto license in Dubai. Likewise, you will know all the factors that will give you advantages in your life as an entrepreneur in Dubai or the rest of the UAE.
What is Cryptocurrency?
Before touching on the topic of UAE crypto license, first, know what a cryptocurrency is below:
- · It is a digital currency, that is, it does not have a physical presence like conventional money.
- · Also, it is decentralized because it does not use a central headquarters for its production, but rather can generate it through a process called mining.
- · In this case, this process must be carried out on a computer that can solve very complex puzzles. After completing the puzzle, a new block appears added to the set of blocks and the miner receives the reward.
- · It is possible to store cryptocurrency on online exchanges, physical hardware, or in digital wallets. Likewise, you can send them to different addresses, between companies, or between individuals.
- · There are many types of cryptocurrencies to mine, exchange, or buy, but the most common are Bitcoin, Tether, Ethereum, and Stellar.
Circumstances for crypto companies in the UAE
In 2018, the United Arab Emirates enacted extensive regulations to regulate cryptocurrency activity. Then, in 2020, the Securities and Commodities Authority (SCA) presented the ICAR or Regulations for the Issuance and Offer of Cryptoassets. Hence, based on these regulations, your local company will be able to acquire the crypto license in Dubai at the following sites:
- · Dubai;
- · The coastal area of the Emirates;
- · Abu Dhabi.
Why do you need a cryptocurrency license in Dubai?
If you want to establish a cryptocurrency business in Dubai, you will need to acquire a crypto license for trading. Therefore, this license falls under the category of commercial licenses. Likewise, the license is essential in commercial procedures that fall within commercial processes in Dubai.
Similarly, the trading of cryptocurrencies is linked to that of Bitcoins and the rest of the cryptocurrencies that exist. Therefore, with the license, you will get permission to carry out cryptocurrency operations in the Emirate of Dubai.
Benefits of Crypto License UAE
The advantages of a cryptographic permit are multiple and you must know what they are. Thus, below you can see each of them:
- · It will ask to obtain 100% foreign ownership without the need to incorporate local partners.
- · Income that comes from international personal marketing will not be subject to UAE taxes.
- · You can transfer the income to any foreign bank account.
- · Reservation of personal, and commercial data, and financial transactions.
- · Via double obligation agreements.
- · It has no export or import taxes.
- · It does not have currency control.
- · No restrictions on the participation of foreign workers in a crypto trading company.
- · In addition, it has an easy procedure for company registration.
- · It has a stable banking system.
- · The Legitimacy of Cryptocurrencies.
Additionally, by confirming their economic presence, companies licensed to carry out crypto trading in Dubai will obtain the right to tax incentives.
Types of Applications for Crypto License in Dubai
Some so-called regulators are available for both types of requests for cryptographic permission as you will see below:
- Regulated controlled license
- · With this license, you will be able to operate a cryptocurrency company managed by state regulators of the Emirates. Next, see the types of activities you can do with this regulated license.
- · Will have a crypto, public, hedge, qualified players, or closed-end fund
- · You will be able to manage digital assets for intermediaries;
- · Likewise, you will get a cryptocurrency trading platform and cryptocurrency exchange.
- · A crypto wallet or storage for cryptocurrencies.
- · You will be able to issue crypto assets.
This type of license is ideal if you do not want to work in an environment governed by UAE law. Also, if you want to have the license unregulated as in the following examples:
- · Venture investments.
- · Marketing that drives the development of cryptographic business in Dubai such as Mining among others.
- · Cryptocurrency initiation advertising.
- · Similarly, Cybersecurity for cryptocurrencies.
- · Self-employment agreement without participation of trading platforms or brokers.
- · Services and Goods for the Crypto Business.
Types of Crypto Licenses in the UAE
You already know the types of applications for crypto license in Dubai, now you will know the types of licenses that you can obtain for your convenience:
Crypto license at DMCC
- · Dubai Multi Commodities Center, DMCC, will offer you a crypto asset license for businesses involved in cryptocurrency activities.
- · The license may cover multiple activities such as cryptocurrency trading, exchange, brokerage, and custody services.
- · Likewise, operations under this type of license will vary under the regulations and steps of the DMCC.
IFZA Crypto License
This is one of the first crypto license in Dubai of the two free zones that allow any activity with cryptocurrency like the DMCC.
Cryptocurrency license at DAFZA
- · With this license, you will be able to start a cryptocurrency company in the DIFC or Dubai International Financial Center.
- · Additionally, you may need to obtain permission from the DFSA or the Dubai Financial Services Authority. This will give you a framework for your company to operate in the DIF, including the digital asset custodian license and other regulated activities.
Crypto license in ADGM
This crypto license in Dubai is for Abu Dhabi Global Markets which is the banking-free zone managed by the Abu Dhabi emirate. The regulations for activity with cryptocurrencies were established in 2018. Currently, it will offer a wide range of commercial operations with crypto assets as follows:
- · Be a custodian of crypto assets
- · The Cryptocurrency Exchange License
- · Buy, sell, and exercise any rights over accepted cryptoassets
- · Also, the administration of the crypto assets of another person
- · It protects crypto assets and creates agreements for another person.
- · Cryptoasset marketing.
Cryptologic license at DWTC
The DWTC is one of the free zones that will be able to issue licenses for cryptocurrencies controlled by the Securities and Commodities Authority. This license offers the possibility of operating in the following activities:
- · Personal purchase and sale of cryptocommodities
- · Commoditized accounting technology products
The crypto license in Dubai cost
Investors who want to set up their business in cryptocurrency must meet the minimum cost requirement of a Crypto license in Dubai, which ranges between AED 30,000 and AED 50,000.
The license fee will vary as you can see below:
- · The DMCC crypto license cost is AED 44500 plus AED 4200 visa fee.
- · DAFZA Crypto License with a 6 m² office will cost AED 41,625.
- · And for DWTC Crypto License AED 25050 including visa.
- · For mandatory office rental costs, and regulatory documents for companies with regulated financial activities, additional costs will apply.
Steps to start a Crypto Business in Dubai
After applying for a crypto license in Dubai, now take note of the steps to start your business in Dubai. Below you will learn the most important steps to get started:
Finalize Your Company Name
- · The first step is to choose a name for your business that will have to be unique, simple, and attractive.
- · The name to be assigned will be your personal registered trademark.
- · Choose names that complement your business and are memorable to anyone who hears it.
Choose The Preferred Jurisdiction
To establish a company in Dubai, you will have two main options available to you as you will see below:
- · Trading with cryptocurrencies on the continent
- · Trading with cryptocurrencies in Free Zones.
In both areas, you will obtain different benefits and you will be able to choose the one that best suits you in terms of the size, type, and activity of your company.
Register for a Commercial Crypto License
- · After selecting the name, proceed to register the company to obtain the license.
- · Then, send the application to the authority that regulates these records in the emirate, with this, you will be able to obtain the license.
- · To make the process easier, you can hire a lawyer or advisor to make the process more fluid.
Comply with The Requirements
Finally, for setting up your cryptocurrency company in the Emirate of Dubai, you will have to comply with the requirements, laws, and government regulations. Therefore, if you neglect these aspects, you may incur multiple sanctions, and punishments and lose your business reputation.
How to get a crypto trading license in Dubai
To establish your cryptocurrency trading company in the emirate, you will require several documents. Additionally, you will have to include the following requirements:
- · Business plan. A requirement of crypto license important thing to start your cryptocurrency company is to present a comprehensive business plan. Therefore, you will have to meet the expectations of your businesses and make it 5 to 10 years. Likewise, this plan must be practical to ensure obtaining the UAE crypto trading license.
- · Photocopy of the passport of the shareholders and owners. You, as the owner of the company, have to present a copy of your passport and that of the shareholders involved.
- · Photocopy of the visas of the shareholders and the owner of the company. As in the previous point, you must provide a copy of the visa of the shareholders and yours.
- · Name of your business. You will have to present some options to reserve the name of your businesses. If the name is available, you can reserve it immediately. In this case, you will be able to avoid conflicts that may arise with a business that has the same name.
- · Rental contract. You will need to present a solid physical or virtual rental agreement to use it.
- · Have VARA approval. The VARA is the Virtual Asset Regulatory Authority that will ensure that everything goes correctly. In this case, to receive your approval you will have to meet some circumstances as you will see below:
- · General design of the industry model.
- · The functional and practical industry model.
- · You must be up to date with virtual assets such as Cryptocurrency and tokens.
- · Also, define virtual asset activities with tracking.
- · Define what type of audience you will cover
- · Have your financial projections ready and well-defined
- · Reveal your sources of funds
You will immediately learn about these requirements that an investor must present to approve the crypto license in Dubai:
- · Your crypto assets must be linked to the departments of the UAE banking-free zones.
- · Your capital and resources for operations must be visible for at least 6 months.
- · Furthermore, records must be real, clean, and accurate to have smooth processes for establishing cryptocurrency businesses in the emirate.
- · Update the statistics and the rest of the financial information.
- · Get a crypto wallet that will serve to protect crypto assets.
- · Copies of the passports of everyone involved in your company
- · Lastly, obtain permission from the DED so that you can be successful in starting your business.
VARA or Virtual Asset Regulatory Authority
A major hub for the emergence of startups related to virtual assets and spaces is Dubai. Likewise, after introducing the VAR (Virtual Asset Regulation) law, the government managed to become the leader in jurisdiction for cryptocurrency investors who wish to contribute in visual currencies such as Bitcoin, Litecoin, NFT, and Ethereum, among others.
Similarly, under the new law introduced by Sheikh Mohammed bin Rashid Al Maktoum, this entity will act as a guide for the management, supervision, control, and regulation of cryptographic and digital assets. Also, it is a legal platform for businesses that work with cryptocurrencies.
Crypto Licensing Lawyers in UAE
- · The VARA legislation sets out how to get UAE crypto license for your investors. Equally, by acquiring the license in the United Arab Emirates, your company will be able to carry out all types of negotiations with cryptocurrencies, and tokens, among others.
- · However, if you want to have a smooth cryptocurrency transaction you have to contact a licensing lawyer. The same goes for when you want to start a cryptocurrency-related venture in Dubai.
- · The agents will be able to help you streamline the processes. Starting with planning the area, and acquiring and applying for a crypto exchange license for your business.
Crypto license in Dubai is a document that you will need to trade cryptocurrency in Dubai and the rest of the UAE. Likewise, when applying for it, make sure you have and comply with all the requirements and requirements stipulated by the government. This way, the process will be easier and you will be able to obtain the license for operations successfully.
However, as we mentioned, you must consider hiring a professional or attorney for the process. In this case, you can contact us and our team of professionals will help you.