Dubai is popular for adapting to new technological advancements & it is no different for the cryptocurrency business. The cryptocurrency business in Dubai is a growing industry right now. Dubai has already established itself as a hub for blockchain technology and cryptocurrency businesses. One of the reasons why it has become so popular is the tax-free zone, which makes Dubai the perfect place for cryptocurrency companies to set up their operations.
The UAE government has also started to develop regulatory frameworks for cryptocurrency businesses in order to attract more foreign investments, which will lead to more job opportunities and higher revenues. The incredible growth of the popular cryptocurrency Bitcoin in Dubai represents how lucrative this cryptocurrency business can be.
The entire process of obtaining a cryptocurrency license in Dubai is so easy that any new business owner or ex-pats can establish their crypto or blockchain business by following some easy rules & regulations.
Dubai has been one of the most welcoming places for cryptocurrency business. On top of that, it is one of the few countries that have not banned cryptocurrencies. In today’s article, we will share some top requirements for obtaining a crypto license in Dubai, UAE.
What is Cryptocurrency?
Cryptocurrency is a decentralized digital currency that is not issued by any central authority or government. It doesn’t have any physical form and it doesn't exist in any physical space. Cryptocurrencies can be mined or traded, just like stocks and shares are traded on the stock market. The value of cryptocurrencies fluctuates with supply and demand for them on various exchanges.
The most common use of cryptocurrency is to make payments on the internet. The mining of cryptocurrency includes solving a complex computer puzzle. If the puzzle is successfully completed, a new block is created & added to a database technology called the blockchain. With blockchain technology, all of the transactions are recorded and stored in a public ledger called a blockchain. This prevents fraudulent transactions from happening because it tracks each transaction and stores them in the blockchain. It uses encryption techniques in order to regulate the generation of units of currency and verify the transfer of funds or any kind of crypto transaction.
Out of thousand digital currencies available in the market, some popular cryptocurrencies in UAE are Bitcoin, Ethereum, Tether, PolkaDot, etc. Bitcoin is considered as an ideal crypto transaction currency all over the world & the total UAE market capitalization of this cryptocurrency was about $265B by the end of 2020.
In Dubai, investors & entrepreneurs are investing in the Cryptocurrency business. The reason is that the UAE has a stable economy and a growing population. There are many start-ups and companies that are developing their own cryptocurrencies or using blockchain technology to provide services such as payment processing or digital currency exchanges. The Cryptocurrency business in Dubai is a lucrative venture because it has low taxes, 100% ownership for foreign ex-pats with simple business setup steps that require no time at all. This makes it an attractive place for cryptocurrency entrepreneurs to start their businesses.
Cryptocurrency License in Dubai
To conduct a legitimate business venture in Dubai or any other state in UAE, you need to go through some legal framework & obtaining a trade license is one of them. To trade Bitcoin with other cryptocurrencies, you need a trading license which is also known as a commercial license as well. Commercial license involves trading process & crypto-based businesses are directly related to trading digital currencies, hence commercial license is required for that.
Using this cryptocurrency license, you can buy & sell crypto-commodities that are developed on distributed ledger technology applications. This license will also be applicable to any company wishing to offer products or services related to digital currencies, such as trading, mining, and exchanging cryptocurrencies.
You need the approval of three key departments of Dubai to launch your cryptocurrency business. They are Dubai Multi Commodities Centre (DMCC), Business Registration and Licensing (BRL) & Dubai Department of Economic Development (DED). Holding a crypto permit from these departments, companies can legally trade & manage their crypto transactions or assets.
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.
5 Requirements for the Cryptocurrency License in Dubai
There are certain requirements, imposed by the UAE government that you should meet to be eligible for obtaining a crypto license.
• First, you need to collect & fill out a commercial license form, issued by the Department of Economic Development in Dubai. Also, your crypto business plan is required alongside.
• You have to submit valid passport copies for all the members & shareholders who are participating in your business activities.
• Having a completely clean crypto wallet with no fraudulent activity or transaction is a must. It will assure you of a seamless license obtaining process.
• Your business capital resources & whole operational activities need to be visible for a minimum of 6 to 12 months of operation
• Make sure that all the cryptocurrencies & crypto assets you are going to trade are incorporated with UAE financial Freezone departments, which is also approved by the UAE government.
One fact, you should remember that crypto trading is regulated in Dubai in the same laws & restrictions as other traditional businesses are. Without following the above-mentioned requirement you will not be eligible for the crypto license & this situation may lead to other technical difficulties including you can be blacklisted from doing international trade business.
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 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.