CryptoCurrency License in UAE – How to start a Cryptocurrency Business in Dubai?
The United Arab Emirates (UAE) is emerging as a prominent global hub for cryptocurrency, with a surge in cryptocurrency companies and a growing interest in adopting this new technology. It is anticipated that Dubai, along with the rest of the Middle East, will experience a significant boom in the cryptocurrency industry in the coming years.
In 2020, the UAE witnessed a market capitalization of approximately USD 265 billion for cryptocurrencies. The cryptocurrency market is currently undergoing rapid growth, fueled by increasing Bitcoin transactions worldwide and the introduction of new cryptocurrencies.
Bitcoin, Dogecoin, Ethereum, Tether, Polkadot, and other cryptocurrencies are gaining substantial popularity in the UAE. Furthermore, online cryptocurrency trading platforms have made Bitcoin trading accessible to individuals.
Positioning itself as a leading player in the cryptocurrency landscape, the UAE embraces innovation and paves the way for a digital financial future.
What is a Cryptocurrency License in UAE mean?
To establish and operate a cryptocurrency business in the UAE, investors must acquire a commercial license. This license will oversee and regulate all facets of crypto trading, monitoring, and purchasing within the UAE.
Currently, the cryptocurrency license in UAE is issued by the Following Free Trade Zones:
- DMCC – Dubai Multi-Commodities Centre
- DAFZA – Dubai Airport Free Zone Authority
- ADGM – Abu Dhabi Global Market
- Sharjah Research Technology & Innovation
Operating Crypto exchanges in the UAE.
Running a cryptocurrency exchange in the UAE involves complying with a comprehensive set of regulatory and compliance requirements. The application process for establishing such an exchange undergoes thorough scrutiny from esteemed entities like the Securities & Commodities Authority, ADGM, and the respective Free Zone authorities.
The introduction of crypto exchanges in Dubai signifies an exciting development that has the potential to revolutionize the landscape for both cryptocurrency license companies and investors in the UAE.
Taxation of Cryptocurrency Trading Companies in UAE
Dubai, in the UAE, presents itself as an enticing hub for crypto trading firms due to its absence of income tax and corporate tax obligations. Entrepreneurs can effortlessly establish tax-free ventures in the realm of crypto trading. Nevertheless, it’s crucial to bear in mind that regular transactions involving cryptocurrency are subject to a mere 5% Value Added Tax (VAT) in the UAE.
Guide to Acquiring a Crypto Currency License in Dubai: Step-by-Step Process
The following steps are to be followed to obtain the Cryptocurrency license in Dubai:
- Submit the cryptocurrency license application form to the respective Free Zones
- Submit the required documents of the shareholders – passport copy, photographs
- A brief business plan and share capital to successfully run the company
- Choose the suitable office space based on the requirement and prepare the tenancy agreement
- Make the required payment for the Crypto License and Office Rent
Once the Free Zone authorities provide their approval, the company will receive a Crypto trading license. Following this, the investor can commence the application process for a UAE residence visa and proceed with opening a corporate bank account in the UAE. This streamlined process ensures a seamless experience for entrepreneurs seeking to establish their presence in the UAE.
Regulatory Authorities for Crypto Licensing in the UAE
The UAE is fully dedicated to establishing a seamless ecosystem for cryptocurrency trading and the blockchain sector. It wholeheartedly embraces the latest technological advancements that drive economic growth. To support businesses engaged in cryptocurrency trading, listing, and management, the Securities and Commodities Authority (SCA) and DMCC have joined forces to develop a comprehensive regulatory framework. Furthermore, the Dubai Airport Free Zone will follow similar guidelines and facilitate the registration of cryptocurrency trading licenses for investors.
Crypto License Guidelines from Abu Dhabi Global Market Free Zone
The Financial Services Regulatory Authority (FSRA) and Abu Dhabi Global Market Free Zone (ADGM) have issued guidelines for cryptocurrency trading and business licenses. ADGM has established the most comprehensive regulatory framework for Crypto Assets Activities in the UAE, as there is currently no other legislation governing cryptocurrency in the country. However, in response to the increasing prominence of cryptocurrency trading, the UAE Government is preparing to introduce a detailed regulatory framework for issuing cryptocurrency licenses and regulating crypto trading.
DMCC Launches New Crypto Centre in Dubai
DMCC has introduced the Crypto Centre, a comprehensive ecosystem designed to cater to businesses operating in the crypto trading and blockchain industries. This hub serves as a dynamic focal point for the advancement and implementation of state-of-the-art crypto and blockchain technologies. With its wide range of support services, the center empowers companies of all types, enabling them to foster innovation and develop groundbreaking solutions in the realm of blockchain and crypto technology.
DMCC Crypto Center – The Crypto and Blockchain Hub of UAE
The newly established center offers co-working spaces for crypto entrepreneurs and SMEs, providing an ideal environment to test and develop innovative blockchain and crypto solutions. Moreover, the Centre is home to a crypto advisory practice led by CV labs, an organization supported by the Swiss Government for Crypto Valley. Excitingly, a diverse range of incubators and accelerator programs are also available, offering funding opportunities for start-ups working on their crypto projects.
Situated at the forefront of Dubai’s future blockchain initiatives, the DMCC’s new Crypto Centre is set to become a thriving hub of technological innovation. Dubai has emerged as a global hotspot and a leader in blockchain and its applications.
With the introduction of the DMCC Crypto Centre, the blockchain and crypto ecosystem in the UAE is poised to achieve unprecedented expansion and success. For more information about Crypto License in UAE, get in touch with our expert Business Consultants today!