If you set up a cryptocurrency business in Dubai, UAE, you will be a pioneer. Though the opportunities are endless in the cryptocurrency sector, cryptocurrency technology is still in its nascent stage in the UAE. At present, less than 1.3% of the world’s population hold Cryptocurrency, which makes it an ideal time for investors to explore this untapped market of blockchain and crypto technology. What you need to ponder now is whether the landscape of business setup in Dubai is positioned to support the crypto industry.
As of now, setting up a cryptocurrency business in the UAE is not a tough task even though the regulations are in the evolving stage. Opportunities in the mainland are scarce but free zones such as Abu Dhabi Global Market (ADGM), DMCC and DAFZA offer company formation opportunities in the UAE for crypto entrepreneurs. Aspiring entrepreneurs can seek guidance from business setup consultants in Dubai to determine which free zone is best for setting up a cryptocurrency business.
If you are an entrepreneur seeking to trade with cryptocurrencies such as Bitcoin, Tether, Etherium, Dogecoin, Ripple etc. this article will be a basic guideline. Read ahead
Cryptocurrency License in DMCC
The DMCC Crypto Centre, officially launched in May 2021, is a perfect platform for cryptocurrency and blockchain investors who wish to set up a business in Dubai. DMCC has been instrumental in dramatically transforming the dynamics of business setup in Dubai with its progressive regulations and license packages. The inauguration of the Crypto Centre is a new addition to its list of accomplishments.
The DMCC Crypto Centre serves as a hub for all types and sizes of crypto companies such as firms that develop blockchain-enabled trading platforms and companies offering, issuing, listing, and trading crypto assets. DMCC provides for investors the best infrastructure including co-working spaces and fixed offices. Business setup consultants in Dubai can assist the investors to navigate the steps of company formation.
Cryptocurrency License in DAFZA
DAFZA is a hot favourite free zone among foreign investors due to its strategic location close to Dubai International Airport. Close on the heels of DMCC, DAFZA also offers cryptocurrency licenses to investors attracted to the process of business setup in Dubai. The free zone has recently signed an agreement with the Securities and Commodities Authority (SCA) to promote the trading of crypto assets trading and related business activities within the Free Zone. By obtaining a cryptocurrency license from DAFZA, investors can perform trading of crypto assets, cryptocurrencies, and other related business activities.
Cryptocurrency Activities in ADGM
ADGM is one of the first free zones in the Middle East region to provide cryptocurrency licenses to investors. ADGM has robust legislation to regulate cryptocurrency companies operating in the free zone. The Virtual Assets Regulation was developed by ADGM regulator Financial Services Regulatory Authority (FSRA) in 2018. The free zone gave licenses for a few crypto exchanges in 2019 such as BitOasis, Digital Assets Exchange, Matrix Exchange and MidChains, among others. The ADGM’s cryptocurrency regulation facilitates arranging, advising, dealing, and managing crypto assets, crypto-asset exchanges that are treated similarly to multilateral trading facilities.
Key Requirements for Setting up a Crypto Business in UAE
A cryptocurrency license is granted to entrepreneurs after considering factors including market capitalization, traceability, price volatility, etc. The Crypto Currency companies are allowed for trading subject to the following
There must be enough capital to operate the business for at least 6 months successfully
The companies must adhere to a strict KYC Norm
Disclosure to Value-Added-tax, Anti-Money laundering, and other Government authorities on request must be fulfilled
Secured information of client’s financial information – safeguarding against cybersecurity
Cryptocurrency Legislation in the United Arab Emirates
At present, the most comprehensive legislation regarding cryptocurrencies is implemented by ADGM’s FSRA. The law applies to cryptocurrency businesses registered with ADGM free zone. The companies registered with DMCC and DAFZA are regulated under the laws stipulated by SCA. Soon, entrepreneurs can set up cryptocurrency businesses in Dubai International Financial Centre (DIFC) free zone as well. Dubai Financial Services Authority (DFSA), the regulator of the DIFC recently announced that it is finalising a framework to regulate digital assets including cryptocurrencies.
Jitendra Business Consultants can help you to Obtain Cryptocurrency License in the UAE
Unlike in the past, the landscape of business setup in Dubai, UAE has evolved to accommodate the requirements of cryptocurrency investors. The most progressive free zones such as ADGM, DMCC and DAFZA have begun permitting cryptocurrency activities within the free time premises. If everything goes well, DIFC is also likely to offer cryptocurrency licenses for investors in Dubai. For global cryptocurrency investors, the UAE will be a new battlefield as they may be unaware of the regulations of the country.
However, the assistance of business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can ease the troubles of company incorporation. JBC offers you the best solutions on how to open a cryptocurrency company in Dubai. We help you choose the best Freezone License based on your business activity. Leave the hassles and documentation for registering a company to our highly qualified consultants while you focus only on your business pitch. Our Consultants will advise the best budget-friendly/cost-effective proposal for company startups and help make your dream a reality.