Blockchain and cryptocurrencies may feel exceptionally new concepts to some entrepreneurs globally. However, they already have a huge potential in the UAE market in 2024. As a prime location for business, Dubai is one of the most welcoming places to start a blockchain company.
The United Arab Emirates is one of the few countries that are embracing Blockchain and cryptocurrencies. Also, the UAE government has brought a new Digital Currency Regulatory Framework law. It includes provisions to protect investors and ensure transparent trading activities.
Despite a young sector in Dubai, the cryptocurrency market attracts Emirati business owners and foreign investors. Reasons for it are economic stability, security with blockchain technology, low transaction cost, 100% business ownership, etc. Setting up a business that blockchain powers is a good idea to tap into the thriving digital economy.
What is Blockchain?
In a nutshell, Blockchain is a technology for recording information of cryptocurrency transactions, such as a digital ledger. It is a kind of distributed ledger that stores the decentralized currency records in a digital format. Whenever a new transaction happens, a new block of data records the crypto transaction details, date, and time.
As an algorithm generates this data block, it is impossible to alter or hack this block. In blockchain technology, the process of cryptography connects the data blocks to each other. Whenever a block is run out of space, a new block connects to the previous block. In this way, blockchain stores the data in chronological order.
Overview of blockchain business in Dubai
The UAE government encourages you to start a blockchain company in Dubai. Also, the UAE central bank and the Dubai Supreme Legislation Committee promote digital currencies as payment methods. With the rising interest in the Blockchain, these highlights show Dubai is perfect to incorporate your business during 2024.
- Around $35 billion bitcoin transactions from July 2022 to June 2023 make Dubai the world’s major base for cryptocurrency business.
- UAE’s Blockchain strategy 2021 specially focuses on foreign entrepreneurs, so they can pursue trade and business lawfully in Dubai.
- This strategy forecasts blockchain technology qill faciltate almost 50% of government transactions.
- The number of blockchain businesses operating in the UAE is 1800 in year 2023.
- FSRA (The Financial Services Regulatory Authority) and ADGM (Abu Dhabi Global Markets) are the key regulators to issue clear guidelines to conduct cryptocurrency trade.
- UAE’s Digital Currency Regulatory Framework law aims to prevent money laundering and protect consumers.
- Going live in May 2021, the DMCC Crypto Center is the home of 550 crypto organizations in 2023.
- Dubai hosts various kinds of Crypto Expo which present cryptographic and blockchain technology in action.
Things to have to launch a Blockchain company in Dubai
These are the things you must consider before you start a blockchain company through 2024.
- Technical resources
- Approaching investors properly
- Open to adaptation
Now, we briefly look upon these important things.
Technical resources
For every blockchain company, it is a must to have a team of technical experts. Before starting any crypto business it is necessary to be tech-savvy, whether you are a developer, marketer, or broker. Especially, as a crypto founder you need to fully understand the blockchain technology system to make technical claims.
Approach investors properly
Though crypto business looks attractive and profitable, it has some certain financial risk factors for the entreprneurs and investors. Despite all the risk, you will have to approach and attract venture capital (VC) companies. If you have an interest in creating your cryptocurrency or alt-coin, you can take the initial coin offering (ICO) route.
There are hundreds of blockchain VCs who are always looking for new crypto business opportunities. So, you need to leverage your public speaking skills in the right way. Accordingly, you can entice the investors in backing your blockchain/crypto company.
Open to adaptation
Flexibility to adapt to new things in the blockchain is the most important thing. For example, Ethereum came late to the crypto market, but holds a large share as the second most popular blockchain technology. You need to always remain open to the new market trends which cause huge market shifts.
Steps to start a Blockchain company in the UAE
These are the steps to start a Blockchain company in Dubai amid 2024.
- Step 1: Choose suitable company name
- Step 2: Select the right economic zone
- Step 3: Obtain a crypto license
Next, we take a look at the step-by-step process to start a Blockchain company.
Step 1: Choose suitable company name
The first step is to pick an appropriate company name. Remember, there are certain rules while choosing your trade name. Come up with a business name that is clear, memorable, and emphasizes your business activity.
Here are the rules you need to follow while selecting a crypto business name.
- Ensure your chosen business name is still available for registration.
- The name shouldn’t relate to any religious or political name.
- Opt for a name that is legally relevant to the specific business activity.
- Don’t opt for any abusive or blasphemous name.
- The name shouldn’t have any reference to a well-known organization.
- Business name should not hurt any public moral.
- The name shouldn’t even have an abbreviation of your name.
Step 2: Select the right economic zone
The success of your crypto business totally depends on selecting the right jurisdiction in Dubai. Every economic zone has different pros and cons. If you choose Dubai free zone for blockchain business, you benefit from no currency restriction and total profit repatriation.
Whereas, with Dubai mainland you are able to provide your service to any part of the UAE. For opening an overseas company you may need to look for a local sponsor for funding. Keep in mind that free zone and mainland companies have different use cases.
Step 3: Obtain a crypto license
You need to get a trade license to operate a lawful blockchain business in Dubai. Apply with the Dubai Department of Economic Development (DED) to license acquire a crypto license. Cryptocurrency or blockchain business operates in the same way like other financial trading businesses.
To keep your license fulfill the corporate laws, comply with the anti-money laundering regulations, and submit your accounts for audit. With the help of proper experts, the whole business setup process becomes easy and straightforward. Hopefully, this guide will help you with proper knowledge about setting up a blockchain company in Dubai.
For this purpose, you need to fulfill the following requirements.
- Show a crypto business plan
- Collect a fill out a commercial license form, which is issued by DED
- Submit valid passport copies of shareholders
- Show a clean crypto wallet
- Capital resources & business operational activities need to be visible for 6-12 months
Conclusion
In case, you are a new entrepreneur in the blockchain business, then get a cryptocurrency license in Dubai. So, discuss with business advisors who have knowledge of dealing with DED, BRL, and DMCC. After all, they can help you in the licensing procedure to finalize your business deals within 2024.
Business consultants offer 360-degree services from company formation to licensing to tax filing. KWS Middle East is here to assist in realizing your dream of owning a blockchain business. Connect with us now to go crypto soon.
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