To cope with modern technological advancement, the UAE government has taken significant steps in each sector of the economic sector. Blockchain & cryptocurrency is not different from this. The whole world is progressing towards a digital revolution & online currencies or transaction is one of them. The UAE has acknowledged the importance of cryptocurrency & embraced blockchain technology as a powerful strength for boosting business.
Out of all the emirates, Dubai is one of the central hubs for crypto businesses in the world. The Dubai Multi Commodities Centre (DMCC)- one of the popular Freezone has led the way in supporting crypto businesses and has been working hard to create a crypto ecosystem that caters to this specific industry. Also, the authority has been working tirelessly to position itself as the leading global commodities trade hub. The DMCC license is now available to crypto businesses, allowing them to buy & sell digital currencies and tokenized assets.
If you are considering Dubai to open your first ever cryptocurrency business, then DMCC Freezone will be the perfect move for you. Let’s have a look at some insights into the cryptocurrency business in DMCC & how to obtain a crypto license in DMCC.
Cryptocurrency Business Setup in DMCC FreeZone
DMCC has been awarded as Global Free Zone Of The Year” for the sixth consecutive year & which is a record. Two key examples that why the crypto business is blooming tremendously in DMCC is- they recently unveiled Blockchain Strategy 2021 & launched the Crypto trade center in May’21.
Blockchain technology 2021 has a special focus on foreign entrepreneurs so that they can easily pursue trade & business in a lawful & mannered way. Additionally, it has aimed to convert the 50% of the government transaction to a blockchain platform capitalizing on the technology. They believe that it can help to transform & optimize the business activities- supply chain management, payment transactions & also commodities tokenizations.
The Crypto Trade Center enables UAE investors to foreign entrepreneurs for setting up crypto firms & businesses, also supports them by providing a regulatory environment, plenty of industry talent, accessing to crypto resources & capital. It is working as a central hub for the development & implementation of applications for crypto & blockchain technology. Now, it is home to more than 20,000 companies for offering, issuing & trading crypto assets.
DMCC started its journey in 2020 in this crypto industry by launching DIgiitalSugar & created a record using cryptographic & digital ledger technology. In 2021, DMCC authorities signed an initial agreement with SCA(Security & Commodities Authority). This agreement enables individuals to apply for a crypto trading license for their venture for DMCC crypto trading.
Types of Cryptocurrency License In DMCC
Just like any other business in Dubai, you have to obtain a trading license for your crypto venture. The DMCC authority is the only responsible concerned to issue a cryptocurrency License & currently, they are approving two types of licenses depending on the characteristics of the crypto business. The DMCC Crypto license will only be approved to such companies that are legally registered with the DMCC and have an established & experienced track record for trading, investing, or developing blockchain technology.
A crypto trading license allows entities for proprietary trading in crypto communities. The license lets you do activities like -buying & selling of commodities which is developed on digital ledger technology applications. If your company is involved in crypto brokerage, crypto exchange, banking services, financial services, or storage services, then DMCC will not issue this license to your company. You will be eligible for the license only when you will get approval from Freezone management. One point to be noted is that this is a standalone license, which means you can conduct other business activities under the same roof. Also, ensure the minimum capital is around AED 50,000.
- Distributed Ledger Technology Service License:
Under this type of license, companies are allowed to provide database management services & distributed ledger technology as blockchain. Companies, that directly trade cryptocurrencies or offer exchange services for the currencies are not valid for this license. Also, if your company caters to any financial service for crypto business then you can’t be approved for this license. Like, a crypto trade license, this license requires a minimum capital of AED 50,000.
Required Steps To Obtain Crypto License in DMCC
You have to follow some easy & quick steps for obtaining any of the above-mentioned crypto licenses. Additionally, you can seek help for any business setup service in Dubai to help you in this entire license issuing process.
Step1: Select a preferred crypto activity that resonates with your business goal.
Step2: In Dubai, there are different kinds of legal structures- sole proprietorship, LLC Company(Limited Liability Company), the one-person company recognized by DED. You have to choose your perfect legal structure according to the authorized framework.
Step3: Choose a suitable trade name that is not related to any political name, doesn’t hurt any religious value, is still available for registration, doesn’t have any reference to any well-known organization & most importantly relevant to your business activity.
Step4: The next step is to submit the crypto registration form to the DMCC authority
Step5: Submit all the related documents of the shareholders including a copy of passports photographs & a detailed business plan with the minimum capital.
Step6: Based on the business requirements, choose the suitable office space offered by the DMCC Crypto center.
Step7: After submitting all the required documents, complete the payments for the crypto license & office rent to the authority who will further issue the license.
How can KWS help?
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 Company Formation Consultant in Dubai 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.