Dubai is a diversified place for opting for different kinds of business opportunities & now, it is blooming as a popular destination for cryptocurrency business. In the near future, the middle east will be a central hub of crypto business companies. The capitalization of the crypto market in the UAE is expected to be AED 265 billion.
As Dubai is quick to adopt new technologies, entrepreneurs from all over the world looking to drive into its growing crypto market. To give a boost in this developing sector, the UAE government has released cryptocurrency licenses for all kinds of crypto trading, buying & monitoring. Bitcoin, Dogecoin, Ethereum, Tether, and Polkadot are some of the popular cryptocurrencies in the UAE market. To support the crypto sector & serve with quality business service, the Dubai Multi Commodities Center(DMCC) has recently launched a Crypto center. They offer customized business licenses depending on the crypto asset & activities.
In this article, we are going to assist you with some valuable information to get a cryptocurrency license in Dubai 2022.
What is Cryptocurrency License in Dubai, UAE?
It is important for any company that is planning on operating in Dubai to get the proper licensing so they can operate legally.
To start a crypto business in any state of UAE, you need to obtain a trade license from the concerned authorities to legalize the business. A Crypto license in Dubai is also considered as a commercial license, as you can perform commercial business activities including the crypto trading process. Having a crypto trade license in Dubai allows companies wishing to offer products or services related to digital currencies, such as trading, mining, and exchanging of cryptocurrencies.
Following free zones are now offering cryptocurrency licenses in UAE-
Dubai Airport Freezone Authority-
DAFZA provides a strong framework for providing licenses to regulate crypto business. To support crypto entrepreneurs & businessmen, DAFZA has signed an agreement with the Securities and Commodities Authority( SCA). Companies with a crypto license issued by DAFZA, can provide services to the international investors around the world & perform various activities with their crypto assets. Now, they are looking forward to with a goal to increase the growth of Bitcoin, Dogecoin, Ethereum, etc.
Dubai Multi-Commodities Center-
DMCC is very open to offering a crypto trade license to business entrepreneurs with very minimal steps. Obtaining a DMCC crypto license you can perform business activities such as trading currencies, storing crypto assets, cater crypto-related services, developing & manage new crypto software & so on. On top of that, you can provide business consulting services with this DMCC crypto license.
Abu Dhabi Global Market-
It is another Freezone to allow operating crypto business that is regulated by Financial Services Regulatory Authority (FSRA). Currently, it is the only legal body that provides a large-sacle legal regulatory framework for the crypto license in UAE. ADGM, combined with FSRA, has announced a comprehensive guideline called Crypto Assets Activities Regulations a crypto license issuing & trading in UAE, to spread the business around the country.
Additionally, if we mention the taxation of blockchain or cryptocurrency trading companies, then you don’t require to pay any income or personal tax. In Dubai, there is no tax for the crypto startup or trading farms. Also in UAE, the value of the tax is extremely low, like 5%. The tax-free option made it easier for foreign entrepreneurs to trade crypto businesses easily.
Process of Getting A Crypto License in Dubai
The process of getting a crypto license in Dubai is comparatively easy for the business owners than any other business license, as the UAE government is continuously working on the laws & legal framework to make it convention & improve the cryptocurrency trading ways & blockchain technology. Steps to attain a crypto license are listed below:
- Collect a crypto license registration form from the respective free zone authority where you wish to cater service & fill out the form
- Attach all the related documents of the shareholders including the copy of passports & photographs & submit the application.
- The next step is to submit all the legal documents of your business to the local DMCC Freezone landowners.
- Based on the business requirements, choose your suitable office space. Also, prepare the tenancy agreement.
- After submitting all the required documents, complete the payments for the crypto license & office rent to the authority who will further issue the license.
- If everything is ok, then the company will get the license within a week of approval
- The post-processing steps are to apply for the UAE residence visa & open a corporate bank account for the transaction.
Disadvantages of Not Getting a Crypto License in Dubai
- If rejected, all the foreign business activities will be permanently blocked.
- UAE government holds a right to revoke your visa & put restrictions & impose travel limitations & restrictions
- All the managers of your company, business shareholders & even owners can be expelled from Dubai
- You may not be able to deal with any local sponsors & there is a chance that your business will be shut down
- You have to pay a large amount of fine to the UAE government & the company’s asset would be seized
If you are new in this crypto trading business & looking for the best place to invest then, it is high time to set up a cryptocurrency business in Dubai. To obtain a crypto license without any problem, you can seek help from any well-known business setup services in Dubai that can help you to submit or acquire your paperwork for a cryptocurrency license & do the whole process on behalf of your company.
How can KWS help you Get a Cryptocurrency Trading License in Dubai?
If you are looking for the best cryptocurrency business setup services in Dubai then you should come to KWS because they are the best company when it comes to Cryptocurrency trading.
KWS is a leading business consulting service that provides- any kind of business setup services in Dubai, Offshore company formation in Dubai, business support(Trade license, Visa service, Legal Translation service, Trademark Registration, Company liquidation, Finding local sponsors) & so on.
If you are a new entrepreneur in this crypto-trading business, then our experienced business consulting team is here to make it easy to get a cryptocurrency license in Dubai, UAE. Our professionals have the right amount of knowledge about license-providing companies (BRL), (DED), and (DMCC). They will help you provide the required licensing procedure to finalize your business deals.