One of the most truthful facts about Dubai is that it is home to the world’s most sophisticated and highly potent stock markets. DFM, or Dubai Financial Market, was established in 2000 and is known as one of the most structured markets in the MENA (the Middle East & North Africa) region.
The future of digital economy development is based on the diversification of money in digital assets. The most prominent venture is the cryptocurrency business which is growing faster in the UAE. For investors, Dubai is providing a leading platform so they can start their cryptocurrency businesses in Dubai.
In addition, if we talk about UAE, the cryptocurrency business is growing so much that it has already established well-reputed business zones for cryptocurrency-related activities. In UAE, you can apply for crypto licenses in free zones, including Dubai Multi Commodities Centre (DMCC), Dubai International Finance Centre (DIFC), and many more. You can also apply for a crypto license in the mainland region of Dubai. But for the mainland, a representative is required.
It is the best time to enter this lucrative industry and start a cryptocurrency business with your digital assets in the UAE. Also, the UAE authority is offering cryptocurrency licenses to foreign investors and helps them with all the documentation and accounts for trading while giving legal support and recognition.
If you want to get your cryptocurrency license here in Dubai, you can contact our experts at Emirates Business Setup. That way, you will know more about all the approvals and legal documentation required for setting up your own cryptocurrency company in Dubai. The cryptocurrency license issued in the following Free Zones in the UAE:
- DMCC (Dubai Multi Commodities Centre)
- DIFC (Dubai International Finance Centre)
- DAFZA (Dubai Airport Free Zone Authority)
- Sharjah Research Technology and Innovation
Cryptocurrency business activities offered in UAE
The government requires a cryptocurrency license/ trade license in Dubai or UAE to do such lawful business activities. For commercial purposes, including trading, a commercial license is required. The cryptocurrency sector includes all the major cryptocurrencies such as Bitcoins, Solana, Ripple, Ethereum, and many other stable coins trading. After getting a cryptocurrency license, you can also engage in other types of crypto-currency operations in UAE as well.
The cryptocurrency business activities that are permitted and are possible in UAE as of now are
- Distributed ledger technology services
- Database management, cryptocurrency consultancy
- Proprietary trading in crypto commodities
- Self-proprietary investments in assets of cryptocurrency
- Blockchain technology
- NFTs E-marketplace provider
- Crypto mining facility operator and many more
How to set up a cryptocurrency company in Dubai?
If you are a foreign investor and looking for guidance to obtain a crypto license in the United Arab Emirates, then make sure you read all the steps mentioned below:
Choose the righteous name for your business.
Have you already thought about the name of your business? If yes, then make sure to send it to the authorities for initial approval. And if not, and you are struggling with it, you can surely contact our business specialists at Emirates Business Setup. Also, make sure to follow all the authentic naming guidelines by the government before naming your business.
Keep in touch with the related jurisdiction.
Cryptocurrency-related ventures are supervised by the VARA (Virtual Asset Regulatory Authority ). Make sure your eligibility before applying to the different free zones and start your crypto venture since different freezones have different eligibility criteria. You can easily establish a new crypto company as a subsidiary of your parent company in a desired free zone or mainland.
Ensure & attain a cryptocurrency license.
This step is the most important one, as now you must obtain an authentic crypto license in Dubai. DFSA (Dubai Financial Services Authority), FSRA (Financial Services Regulatory Authority), and SCA (Securities and Commodities Authority) are the authorities that regulate cryptocurrency affairs and blockchain-related assignments in the United Arab Emirates.
The following documentation is required to obtain a cryptocurrency license in UAE,
- Dubai department of economic development commercial license form to be filled. (Documents required include ID, Registered Residency Address, Verified company name, and submission of Business Plans)
- Passport copies of owner, and shareholders if any.
- Crypto wallet records must be free of any fraudulent transactions.
- 6-12 months of tracking of all operating expenses and capital resources as per the launch of your business
- Government-approved UAE free zone departments registration is required for all your crypto assets
- Detailed business plan submission
For getting a permit, the above documentation will be required. It will be easier, faster and more effective if you can collaborate with business licensing specialists. Here we have the most experienced business specialists at Emirates Business Setup, and we make sure to file your application safe-handed to get the license in one go.
All compliance protocols must be followed.
Securities and commodities authority published standards related to CARR (Crypto Assets Activities Regulation) that provide general operational regulations for crypto-asset users and enterprises. The standards also include anti-terrorist financing and anti-money laundering laws. The government of UAE takes legal action against the companies or firms that do not obey the compliance and regulations.
What are the benefits of starting a cryptocurrency company in Dubai?
If any individual wants to get into cryptocurrency or is interested in it, then the only thing you should care about is the financial risks and goals. Nowadays, people are interested in cryptocurrency companies in Dubai, and it is because of some prominent benefits.
The most lucrative benefits behind choosing Dubai for cryptocurrency businesses are as follows:
- No taxation or zero taxes are possible when you are starting your cryptocurrency business in UAE.
- Strategic locations to start your cryptocurrency business in Dubai
- Global recognition of UAE as promoting cryptocurrency businesses
- Less compliance in Dubai as incorporating a crypto business here is easy and requires less or no tax compliances
- Cost is relatively low and there aren’t any charges for some transactions
- Confidentiality is prioritized in UAE
- Business activities can be developed fast
- Legal recognition for digital assets including crypto currency
- Recognition from banking sector for crypto businesses in UAE as compared to other countries
Bank account opening that supports cryptocurrency in Dubai, UAE
Bank account opening processes linked with crypto companies are rigorous in Dubai. Before getting approval for a bank account opening for your crypto business, you must liaise with official approvals from free zones that offer cryptocurrency business setup. Also, documents are required for registration purposes to open a bank account that supports cryptocurrency business. The procedure might take more time for activities like cryptocurrency, but it is not impossible here in Dubai. But if we take into consideration about most of the other countries such as Canada, they do not support account opening for cryptocurrency related businesses. But here in Dubai, things are different, as it welcomes cryptocurrency companies and offers bank accounts to these crypto-based companies here in Dubai.
There are banks in Dubai that are crypto-friendly, including Emirates NBD, and Mashreq al Islami, as they offer bank accounts to crypto companies after verifying the details of the company to cross-check it’s clean and free of fraudulent transactions.
For further information regarding your bank account opening that supports your cryptocurrency setup, Emirates business setup is here to help. You can call us, and our professional advisors will handle all your matters.
DMCC – the crypto and blockchain hub in UAE
It aims to be a hub for developing and applying crypto and blockchain technologies. The Centre will support all types of companies to develop blockchain and crypto technology solutions.
DMCC is famous for its comprehensive ecosystem and crypto centre developed for crypto trading and blockchain technology related operations. You surely can get your crypto license in the DMCC Crypto Centre, as it offers activities related to crypto business such as crypto-management, crypto-consulting, crypto-software development, and other similar services.
DIFC – introduction to the regulatory framework for crypto tokens
DIFC is familiar with the international financial hub in the MEASA region and is proposing the extension of financial service activities such as crypto tokens. Also, DFSA introduces a framework for investment tokens. For these financial services related to the crypto token, you must have a DFSA license.
DIFC requirements include six stages to getting your license
- Letter of Intent (LOI) to DIFC
- Regulatory business plan
- Submission of application documents to DFSA
- Approval from DIFC
- Registration with companies that include visas, bank accounts, and office setup
- The Last step is inspection and getting authorization from DFSA
DWTC – Dubai World Trade Centre
It is a free zone in Dubai that offers industrial activities related to crypto-currency, assets, blockchain, and many more. It collaborates with VARA and is now becoming popular in virtual asset businesses. The authority of this zone is working with VARA for the application process of regulated virtual asset business license launchings.
Launch your cryptocurrency company with EBS!
If you are looking for lucrative business opportunities and want to start your cryptocurrency company in Dubai, UAE, then this is the right time to set up your company by connecting with Emirates Business Setup Here you will be assisted by our business specialists, who will ensure you make your journey on the right path. Just share your idea, and we will handle the rest!