Diversification of money in digital assets is the future of the developing digital economy. One such venture is the cryptocurrency business. The UAE is growing as a leading platform for investors to start their crypto business in Dubai. In addition, several business zones in the country have already established themselves as reputed zones for conducting crypto-related business activities. Today, you can apply for a crypto license in free zones like the DMCC, DIFC, etc., and also via a representative office in Dubai region too.
The permitted business activities as of now include database management, self-proprietary investments in crypto assets, cryptocurrency consultancy, and data mining. Note that you can’t launch an ICO or register a crypto exchange unless it is regulated by competent authority.
Now is the right time to enter this futuristic and lucrative industry by setting up your digital asset business in the UAE. You can connect with the experts at Shuraa to know more about the legalities and approvals required for this venture.
What is cryptocurrency?
The name cryptocurrency comes from the fact that it uses encryption to validate transactions. Cryptocurrency (or crypto) is a type of digital or electronic currency that employs encryption to protect transactions.
Furthermore, cryptocurrencies operate without a centralised issuing or governing authority, Instead, it relies on a decentralised system to track transactions and create new units.
In addition, it’s a peer-to-peer mechanism that allows anyone to make and receive payments from anywhere. Cryptocurrency payouts exist solely as digital entries to an online database identifying specific transactions, rather than as tangible money taken around and traded in the real world.
Some examples of cryptocurrencies include:
Requirements associated with a crypto trading business in the UAE
Listed below are a few of the several requirements that your company must meet to commence a crypto venture:
- The “UAE financial free zone” divisions should be integrated with all crypto assets.
- Make sure that your financial resources and other operational expenses are accessible for around six to twelve months.
- Implement top-notch cybersecurity mechanisms to ensure that the data is safe for all the crypto-related operational transactions.
- Include copies of all of your stakeholders’ valid passports to get a cryptocurrency exchange license in the UAE.
Things to consider before you launch your crypto business in Dubai, UAE
- All the crypto-related ventures (representative offices, data mining firms, and consultancies) are monitored and regulated by VARA that’s set up under the Dubai World Trade Centre (DWTC). Therefore, you should get in touch with the regulatory authority to comprehend the legitimacy of your cryptocurrency business in the Emirates.
- To set up a crypto business in the Dubai International Financial Centre (DIFC), it’s required for the company to have at least 5 years of legal presence in some other country in the cryptocurrency domain. Although, the best way to incorporate such a company is through a representative office in Dubai.
- The Dubai Multi Commodities Centre (DMCC) issues an exclusive self-proprietary cryptocurrency license that empowers you to invest in crypto assets. You can connect with Shuraa’s business experts to know about launching a business in DMCC.
- Do you want to open a data-mining firm for your crypto-related business in Dubai? The good news is you can do so by applying for an IT company trading license and obtaining the additional consent for cryptocurrency business (if needed).
- Cryptocurrency business aspirants can also set up a consultancy enterprise in Dubai. However, you can get in touch with the experts at Shuraa, and we’ll help you open a bank account for your crypto consultancy business in Dubai.
Advantages of setting up a crypto business in Dubai
- Today’s audience is always looking for modern-day companies that accept cryptocurrencies for various transactions. Therefore, this becomes a standout feature for your business that separates it from the rest of the competition. It’s a great asset to add to your venture to attract wider audiences to your products & services.
- The best part about transactions that happen via blockchain is that there aren’t any gateway or service charges. Therefore, this reduces a company’s transactional cost significantly. In addition, there aren’t any cross-border barriers to making cryptocurrency transfers.
- Blockchain is a decentralised payment mechanism that offers enhanced encryption facilities. Therefore, you can safely make crypto transactions from anywhere in the world with the same encryption standards.
How to apply for a crypto license in Dubai?
You need to follow the steps discussed below to obtain a crypto license in the UAE:
Step 1. Choose a business name
Do you have a trading name in your mind for your cryptocurrency business? If yes, you can send it over to the concerned governing body for approval. If not, you can connect with the business specialists at Shuraa, and we’ll help you shortlist a few names for your venture.
Additionally, you need to ensure that you follow all the naming convention guidelines established by the government.
Step 2. Get in touch with the concerned jurisdiction
Crypto-related ventures in the UAE are supervised by the virtual asset regulatory authority (VARA). For instance, a company must have at least 5 years of legal presence in some other country in the cryptocurrency domain to become eligible to launch a crypto venture in the DIFC free zone.
You can establish a representative office of your parent crypto company in the UAE in any of the desired free zones or even in the mainland region.
Step 3. Secure a cryptocurrency license
Now, the next step is to obtain a crypto license in Dubai. The Financial Services Regulatory Authority (FSRA), Securities and Commodities Authority (SCA), and Dubai Financial Services Authority (DFSA) regulate cryptocurrency & blockchain assignments in the UAE.
You need to meet all the paperwork and approval requirements to get this permit. Therefore, it’s recommended to collaborate with the business license specialists at Shuraa. We file your application after thoroughly assessing the information to ensure you get your license in one go.
Step 4. Follow all the compliance protocols
Cryptocurrency trading in the UAE is vigilantly regulated, just like other financial trading operations. The SCA published Crypto Assets Activities Regulation (CARR) standards that outline the general operational regulations for crypto-asset enterprises and users.
It also includes additional anti-money laundering and anti-terrorist financing laws. These regulations include the requirement for a robust compliance network, as well as KYC and AML monitoring requirements.
Additionally, the government takes legal actions against firms that don’t follow the safety & compliance regulations.
What Is the Cost of a Crypto License in Dubai?
If you satisfy all conditions, obtaining a crypto license shouldn’t be difficult. Although the final cost of a crypto license in Dubai will vary on the applicable laws, it can generally range from 21,500 to 35,000 AED and may increase depending on the Activity. To get the exact cost, kindly connect with Shuraa Experts.
Launch your cryptocurrency business in Dubai, UAE!
A crypto license in Dubai opens the doors for new-age investors to find several lucrative business opportunities in this futuristic financial sector. Therefore, now is the time to act and set up your crypto company in the Emirates by connecting with Shuraa.
We offer end-to-end business assistance to our clients to ensure they don’t face any complexities to launch their ventures in the UAE. Therefore, all you need to do is collaborate with our professionals, and they’ll handle the rest!
To learn about how to start a business in Dubai, book a free consultation with one of Shuraa’s corporate advisors, simply call at +971 44081900 or send a WhatsApp message to +971 507775554. You can also drop an email to email@example.com