Cryptocurrencies are gaining attraction internationally and across the UAE. As the international hub for finance, innovation, and technology; Dubai is rapidly becoming a popular market for cryptocurrency businesses. Therefore, starting a cryptocurrency exchange in Dubai is a lucrative opportunity.
Business-friendly policies and tax benefits of United Arab Emirates are significantly easing the company establishment process in different verticals. Similarly, growth of digital economy has led to the appeal of cryptocurrency businesses in Dubai. Thus, driving on the blockchain, several alt coins have taken the financial markets around the world by a storm.
Numerous companies/startups are developing cryptocurrencies, or using blockchain technology to provide services like payment processing, or digital currency exchanges, etc. Cryptocurrency exchange in Dubai is a lucrative venture because of low taxes, 100% ownership for expats, and simple business setup. So, it makes Dubai an attractive place for entrepreneurs and new company owners to start their cryptocurrency businesses.
Salient features of Crypto exchange license in Dubai
These are the prime features of Crypto exchange license in Dubai.
- Secure and fast Crypto license
- No minimum capital requirement
- Starting from minimum 12000 USD (45000 AED)*
- No requirement for physical office
- Issuance of Crypto license in 3 months*
(Terms and conditions apply)
Process of cryptocurrency exchange setup in Dubai
This is the simple procedure for incorporating a cryptocurrency business in Dubai.
- Finalize a company name
- Select the jurisdiction
- Apply for the cryptocurrency license
- Follow all the compliance requirements
Now, we briefly look upon these steps.
Finalize a company name
The first step is to choose a catchy name for your cryptocurrency company. Firstly, this name should not contain any well-known trade names. Also, don’t use profane words, or blasphemous phrasings.
Select the jurisdiction
Decide which jurisdiction you want to establish your company in. Generally, the free zones in Dubai offer you advantages like no currency restrictions, and complete capital and repatriation. Whereas, mainland Dubai provides you better outreach potential to customers in the UAE.
Apply for the cryptocurrency license
Either you want to launch your own cryptocurrency. Otherwise, you are setting up a cryptocurrency exchange in Dubai. Once, you are set with the above considerations, you can apply for a cryptocurrency license in Dubai.
Follow all the compliance requirements
Cryptocurrency exchange businesses come under the purview of financial trading. Thus, you must have a valid trading license. Also, you have to comply with the anti-money laundering regulations.
Steps for obtaining cryptocurrency exchange license in Dubai
Here is the way to get a cryptocurrency exchange license in Dubai.
- Consult with experts who can make your business setup procedure become hassle free
- Prepare the necessary documentation for your business
- Submit application on behalf of the shareholders
- Include relevant documents like passport copies and photographs
- Choose the office tenancy options as per your business requirements
- Pay the crypto license application fee to the respective authority through your consultants
If everything works out, the authorities will award the cryptocurrency license in Dubai within a few weeks of approval.
Requirements to get a crypto exchange license in Dubai
UAE’s government has eligibility requirements you must meet to apply for a cryptocurrency exchange license in Dubai.
- A commercial license form from the concerned licensing authority
- Passport copy of all the linked business partners
- A clean crypto wallet record with no history of fraudulent activities or transactions
- Ready visibility of all operational expenses and capital resources for at least 6 months of business operations
- Incorporation of all crypto assets with the UAE financial free zone departments under authorization by the UAE govt
- Submission of a complete business plan to the relevant authorities
Types of cryptocurrency businesses trending in Dubai
These kinds of cryptocurrency businesses are trending in Dubai and across the UAE.
- Cryptocurrency mining business
- Digital wallet business
- Blockchain development business
- Crypto investment/exchange business
Here we take a brief look on these trending crypto businesses in Dubai.
Cryptocurrency mining business
Cryptocurrency mining software companies are earning higher than android apps software companies in Dubai. There is a mining pool in Dubai which helps in crypto-coins mining and distribution to cryptocurrencies. Three main types of crypto-mining are app mining, CPU mining, and GPU mining.
Slush Pool, Hashgains, MultiPoolMiner, and Salad are the top best cryptocurrency mining software in Dubai. The cryptocurrency mining business has maximum profit with minimum risk. It enables entrepreneurs to try their luck with the support from UAE start-up incubation centers and venture capitalist firms.
Digital wallet business
Before the purchase of crypto-coins, digital wallets are necessary to protect the e-currencies from hackers. Also known as virtual wallets, they enable exchanging your digital coins into international acceptable currencies. A crypto-wallet stores private encrypted codes required to access the cryptocurrency exchange, for purchasing and spending your virtual money.
The best digital wallets in the UAE are Paybis, BitOasis, Rain, eToro, and Bitcoin ATMs. Gradually, the demand of crypto-wallets in Dubai, Abu Dhabi, and Sharjah is growing. This business has numerous advantages for cryptocurrency lovers throughout the United Arab Emirates.
If anyone purchases a large number of crypto-coins, then a safety vault is essential. Newbie entrepreneurs prefer to enter the digital wallet business sector. Because, the competition is slightly lower in comparison to cryptocurrency mining and currency extraction vertical.
Crypto investment/exchange business
A cryptocurrency investment business lets you invest and make profits from the crypto-coins and alt-coins. Whereas, a cryptocurrency exchange business enables you to interchange crypto-coins into the physical currencies. They let you to exchange e-currency into fiat currencies like Arab Emirates Dirham (AED), US Dollar, and Euro, etc.
Blockchain development business
The blockchain is a coin-to-coin exchange online network that uses the worldwide web. It connects all e-currencies transactions and apps to make a single interconnected cryptocurrency market digital platform. Entrepreneurs can invest in the UAE’s blockchain development sector to get higher returns.
Some great blockchain companies are assisting the customers in the UAE. SoluLab, OpenXcell, S-pro, and Adoriasoft are the leading software and blockchain developers powering the UAE digital market. However, there is a space for blockchain developers to start a fresh business in Dubai and the UAE.
Tech-driven business owners can hire developers and buy coins to create their blockchain hub in the UAE. Business of creating blockchain applications for the virtual cryptocurrency market is highly rewarding. It has a higher net profit in comparison to the traditional business in the UAE.
Top areas for cryptocurrency business setup in the UAE
These are the leading places for setting up a cryptocurrency business in the UAE.
- Dubai Silicon Oasis (DSO)
- DMCC Crypto Center
- Dubai Airport Free Zone Authority (DAFZA)
- Abu Dhabi Global Market (ADGM)
- Dubai International Financial Centre (DIFC)
- Ras Al Khaimah Digital Assets Oasis (RAK DAO)
- Dubai World Trade Centre (DWTC)
- International Free Zone Authority (IFZA)
Reasons for starting a cryptocurrency business in Dubai
Bitcoin industry of the UAE is full of rich opportunities for those who want to venture into the E-currency world. In the same vein, Dubai enables these businesses to get maximum profit from their digital currency investments. These are some amazing reasons for companies to offer cryptocurrency services in Dubai.
- Decentralization of financial system
- Data security and privacy
- Inexpensive business operation
- Connection with investors
- Limitless business potential
Let us take a look at the motives to start a cryptocurrency business in Dubai.
Decentralization of financial system
The best feature of the cryptocurrency sector is decentralization, as not a single entity is controlling it. Blockchain technology secures all e-transactions and keeps them visible ever. All the records are saved on the distributed ledger with a peer-to-peer process.
Data security and privacy
Sometimes, dealing with traditional payment systems can turn out a rough experience for entrepreneurs. Because, transactions with cash or credit cards can result in scamming incidents. The main reason is the threat of the security breaches, and the compromise of the user privacy.
Cryptocurrency transactions are publicly visible with no threat of data breach, thanks to the advance cyber-security of Dubai. Blockchain run cryptocurrency exchange system is highly secure, and provides a safe channel for online payments. Shielding of online payment receipts in the Dubai cryptocurrency exchange market leads to high rate of customer satisfaction.
Inexpensive business operation
We are living in a rapidly growing business world, where every product or service is getting expensive. The digital currency sector can turn out costly for the fresh starters in the industry. However, a cryptocurrency business turns out inexpensive in the long run.
Entry-level crypto business setup is a bit cheaper than the credit card run businesses. Also, the cryptocurrency transactions are without geographic boundaries, with no costly overheads. Real-time notifications about the ongoing cryptocurrency trading, with no extra dues for sending or receiving e-currency helps both parties.
Connection with investors
Many venture capitalists are taking an interest in cryptocurrency exchanges in the UAE. Also, investors are eyeing to back other cryptocurrency businesses in Dubai. If your business plan is solid, then there are several investment options to fund your crypto trading startup.
Limitless business potential
The UAE has boundless opportunities for newbie entrepreneurs and thriving companies. Moreover, Dubai is suitable for executing plentiful cryptocurrency business ideas, according to your budget and resources. So, you can start a cryptocurrency exchange in Dubai that deals with the trading of Bitcoin and other cryptocurrencies.
Mobile app developers can launch an E-wallet business to facilitate the users in safely keeping the cryptocurrency and alt-coins. Cybersecurity firms can build blockchain centric secure systems to enable digital transactions of cryptocurrencies and other E-currencies. If you don’t want to deal with direct E-trading, begin your online course to teach others about Blockchain and cryptocurrencies.
Things to know to open cryptocurrency business in Dubai
Technical knowledge of the Blockchain technology is an extremely important consideration. Complete awareness of the cryptocurrency sector is also very necessary. It is vital whether you are the crypto business owner, currency broker, programmer, or a marketer.
As a tech-savy professional, you must have proper know-how of all the nitty-gritty of the virtual currencies. Keep yourself up-to-date about the crypto business sector around the world. Also, make sure that the technical team you are recruiting has this knowledge.
- Information about core blockchain technology
- Knowledge about blockchain protocols like the Ethereum
- Awareness of the working of distributed ledger
- Understanding of financial markets and their technical analysis
- Command over JavaScript and TypeScript
Considerations while forming cryptocurrency business In Dubai
You must consider these crucial points before beginning a crypto business in Dubai.
Let’s briefly shed light on these considerations before commencing a crypto business in Dubai.
Know-how to approach investors
As the cryptocurrency business involves huge financial risk, it is applicable equally to the owners and investors. But to venture your business in Dubai free zone or any other economic zone you need venture capital (VC) firms to help you financially. If you are not interested in equity financing then you can leverage the ICO (Initial Coin Offering) route to create your own token. But it comes with its own legal liabilities and financial risk.
In a nutshell, you should have good presentation skills to make investors in your business. As there are hundreds of blockchain VCs out there who are always searching for new crypto-business opportunities, you need to invest in your public speaking skills in the right way.
Be open to innovation
Blockchain and innovations work parallel. In this fast-forwarding industry, being open-minded & flexible to adapt to new technologies in the blockchain is the most important & crucial thing. You have to be always ready to cope with the rapid market shifts quickly, otherwise, your competitors will take over on you with no time. You have to continuously develop & enhance the technical side of your operation to keep up with the changing environment.
Calculate risk tolerance
Before starting your blockchain business you should know about its fluctuating market and high-risk share. Cryptocurrencies can be mined or traded, just like stocks, shares are traded on the stock market. The value of cryptocurrencies fluctuates with the supply and demand for them on various exchanges.
You have to analyze the risk factor of your business. For crypto business, the strategy working today or tomorrow may not well useful for the future. If the pricing of Bitcoin or any digital currency falls as happened in April 2017 and January 2018. it takes years for the business owners to recover the overall loss. So, if you want to be consistent in this crypto business, you should be aware of financial risk & also look forward to adapting to changing market conditions.
Benefits of investing in cryptocurrency business in Dubai
The UAE is offering great cryptocurrency trading business opportunities for entrepreneurs. Several free zones in Dubai allow trade in cryptocurrencies, with the approval of Dubai Economic Department (DEP). Major international brands like Tesla, PayPal, and Microsoft are engaging with cryptocurrency assets after establishing offshore branches in Dubai.
These are the benefits of investment in cryptocurrency businesses in Dubai.
- Full business ownership
- Blockchain wallet technology
- Instant payment method
- User confidentiality
- Easy residency with trade permit
- Brand awareness
Next, we briefly discuss these perks of incorporating a cryptocurrency business in Dubai.
Full business ownership
Sole ownership of a cryptocurrency business lets you hold the company’s private and public data in secure files. With complete control of the cryptocurrency exchange in Dubai, the owner can efficiently run the business operations. Also, the cryptocurrency market network manages all of the documentation. Virtual data saving assists the business owners to maintain a stable system with negligible flaws.
Blockchain wallet technology
The Blockchain wallet is a decentralized cryptocurrency technology that manages digital capitals with limited access to tangible transactions. As a major hub for blockchain technology, Dubai is attracting many successful companies to invest in the cryptocurrency business. These crypto companies can avail maximum edge through a highly secure cyber network.
Blockchain technology powers Bitcoin and other cryptocurrency transactions, while maintaining the digital spreadsheets. It has a highly advance system to perform complex E-currency transactions. Also, this system gives a full overview of the virtual currency news and business activities in minimum duration.
Instant payment method
Cryptocurrencies are getting a greater acceptance as a payment method globally. Elimination of banks is the persuasive force of cryptocurrency that allows major business companies to invest in this e-business. The swift digital transactions and no barriers between the senders and receivers are the perfect elements of the cryptocurrency business.
User confidentiality
An important factor that encourages the trading community to start a cryptocurrency business is the protection of the customers’ identity. Saving of the financial transaction history in the cryptic vaults inside the digital ledger guards the information from exposure. In comparison to the credit card transactions, the risk of data leakage is negligible in the cryptocurrency businesses.
Easy residency with trade permit
Establishing a cryptocurrency exchange business in Dubai can easily get you the UAE visa. Just, imagine starting a fresh business, and also obtaining a permanent residency card from the UAE authorities. It is once in a lifetime opportunity that you cannot get every day.
Crypto trading permit enables you run a cryptocurrency exchange business in Dubai. Also, it lets you to do the mining of Bitcoin and other cryptocurrencies. A crypto license empowers you to expand your company’s financial dealings, and freely move your profits worldwide.
Brand awareness
Cryptocurrency trading businesses in the UAE can create a major impact on the international virtual assets market. Any brand signing to trade or exchange cryptocurrency in Dubai instantly gets global recognition with a high competitive advantage. Open gates to expand your clientele by allowing online customers to become part of your Blockchain centric business.
After the entrance of E-currency in the trading, brands with early registrations are becoming leaders in crypto exchanging. Without the visibility of your brand, it is hard to get more customers or finalize business deals. Modern customers are likely to embrace the brands that operate on Blockchain and deal in the cryptocurrencies.
Best cryptocurrency exchange apps in the UAE
The cryptocurrency exchange apps have a huge demand in the virtual assets market of the UAE. With a great potential, crypto exchange applications are suitable for entrepreneurs to build. These blockchain-run apps connect with customers who are abundantly present in the Digital Hive of UAE’s smart places.
Here we look into the major cryptocurrency exchange apps in the UAE.
Coinbase
It is the largest cryptocurrency exchange business in the UAE. Coinbase lists the crypto prices including Bitcoin, Ethereum, Litecoin, etc. It organizes the clients’ crypto-coins in a secure location that links to the blockchain network. Also, a highly affordable money transfer rate for crypto transactions gives Coinbase an edge over the competitors.
Binance
This cryptocurrency exchange company offers a wide range of digital gold in the UAE. Bitcoin, Ethereum, Ripple, Litecoin, Dogecoin, ICON, Tron, and their own private cryptocurrency Binance Coin are among the top-selling cryptocurrencies. The best feature of Binance is the extremely low fee charges (that is below 0.1%). This strength helps them to secure numerous deals from the Dubai’s cryptocurrency market.
Cash App
Square powers Cash App and they handle all major financial transactions including Bitcoins. This is the top cryptocurrency exchange mobile app with the highest transaction rate in the UAE. Cash App’s best selling product is Ethereum and they provide reasonable Ethereum price rates to the international market.
Scope of the cryptocurrency businesses in Dubai, UAE
As the digital hot-spot for evolving business sector favoring blockchain and crypto, the reputation of the UAE is expanding globally. The UAE is persuading the foreign companies to invest in Dubai smart city and other tech-centric areas. Cryptocurrencies are turning into the digital gold and are making a huge impact on the UAE economy.
The vision of the UAE’s government to transform Dubai into a financial hub is realizing. Dubai is a leading state of the UAE with the highest percentage of cryptocurrency business startups and blockchain investors. The number of the financial transactions through Blockchain is higher in Dubai in comparison to private central banks’ business activities.
Large corporations like IBM, Microsoft, Amazon, and Tesla are officially interacting with the Blockchain technology. They have made long-term contracts to launch digital currency in the UAE and internationally. In turn, the demand for crypto assets experts in Dubai is gradually increasing.
Emirati digital ecosystem is ideal to manage blockchain, cryptographic, crypto trading, and crypto-wallets. The UAE is opening the gates for technology startups, incubation centers, entrepreneurship training, and funding departments. Global blockchain technology companies are flocking to the UAE free zones for establishing their branches.
The trend of the cryptocurrency business is at the highest peak in the UAE. The cryptocurrency market delivers many business opportunities for fresh entrepreneurs to gain maximum profit. Dubai empowers the crypto business owners to make the most of their investments.
Conclusion
Cryptocurrency offers immense growth and profit potential. However, the procedure of forming a cryptocurrency exchange in Dubai involves dealing with several rules, regulations, and requirements. Furthermore, you must have knowledge about DED, FSRA, ADGM, etc.
In the event, you are a new entrepreneur in this crypto-trading business. Then you want an easy procedure to get a cryptocurrency exchange license in Dubai. Likewise, the same is the case with companies who desire to introduce cryptocurrencies.
Worry not, as KWS Middle East is a leading expert in cryptocurrency company formation in Dubai. Hence, we provide end-to-end business setup and consultation services in UAE and manage the entire registration process on your behalf. So that you can focus on the important task of growing your business.
FAQs about starting cryptocurrency exchange in Dubai
These are the answers to the frequently asked questions regarding starting cryptocurrency exchange in Dubai, UAE.
In a nutshell, cryptocurrency is a decentralized digital currency that is not issued by any central authority or government. Cryptocurrencies don’t have any physical form and they don’t exist in any physical space. Accordingly, you can mine cryptocurrencies, and trade them just like shares on the stock market.
The mining of cryptocurrencies includes solving a complex computer puzzle. Upon the successful resolution of the puzzles, new blocks are created and added to a database technology called the blockchain. Subsequently, with blockchain technology, all of the transactions are recorded and stored in a public distributed ledger.
Blockchain uses the encryption techniques to regulate the generation of the units of currency. Also, it verifies the transfer of funds or any kind of crypto transaction. This prevents fraudulent transactions from happening because it tracks each transaction and stores them in the blockchain.
Some of the popular cryptocurrencies out of 1000+ digital currencies available in the world are Bitcoin, Ethereum, Tether, and PolkaDot. Bitcoin is ideal crypto transaction currency worldwide and the UAE. Consequently, many entrepreneurs are investing in the cryptocurrency business in Dubai and across the UAE.
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