How to Get a Crypto License in Dubai, UAE?

Ever since the inception of Bitcoin in 2009, the digital currency has transformed the financial landscape by providing a secure, transparent, and efficient mode to conduct transactions. Its decentralized nature enhances global accessibility, thereby reducing transaction costs. Dubai, one of the world’s fastest-growing economies, is swiftly becoming an epicenter for cryptocurrency ventures. With the persistent growth of the industry, the Crypto License in Dubai is gaining more popularity among investors who are looking to tap into the lucrative Middle Eastern market.?

Through this comprehensive article, we will guide you through the essential steps to secure a crypto license in Dubai, the activities it encompasses, and how to navigate regulatory compliance to obtain the license.?

Crypto License in Dubai, UAE?

Cryptocurrency regulations are progressively moving forward in the UAE. The country is continuously taking strides to be the front runner of future economic development including crypto licensing. The Virtual Asset Regulatory Authority (VARA), implemented under the Dubai Virtual Asset Regulation Law, outlines the requirements to obtain a cryptocurrency license to operate in Dubai. Some of the leading crypto exchanges like Binance, Coinbase, and Bybit have already received their licenses from the VARA.?

Thus, it is evident that the UAE is all set to become a global crypto center, serving the whole region.?

Types of Crypto License in Dubai?

There are a variety of cryptocurrency licenses available in Dubai –?

• Cryptocurrency Exchange License?

• Cryptocurrency Wallet License?

• Crypto Asset Exchange License?

• Crypto Asset Wallet Provider License?

• Crypto Asset Management License?

• Crypto Asset Trading License?

• Distributed Ledger Technology Service License?

Each of the aforementioned licenses is designed to cater to specific purposes within the crypto industry. This, thus, ensures that all business activities are regulated appropriately and operate under a secure, transparent, and protected framework. The structured approach of these licenses not only encourages the growth of Dubai’s crypto market but also enhances its reputation as a leading hub for digital asset initiatives.?

Get a Crypto License in the UAE?

These are the places where you can set up your crypto business in UAE –?

ADGM Crypto License – Abu Dhabi Global Markets is a regulated financial zone of Abu Dhabi that established crypto activities regulations in its territory in the year 2018. The free zone offers a wide range of crypto assets business activities, such as:?

• Crypto exchange?

• Crypto asset custodian?

• Buying, selling, marketing, and exercising right in crypto assets?

• Managing crypto assets of other parties?

• Arranging custody of crypto assets?

DMCC Crypto License – Dubai Multi Commodities Center is a pioneer in offering crypto licenses in Dubai. The crypto-related business setups offered by DMCC are as follows:?

• Distributed ledger technology services?

• Registered trading in crypto commodities?

• NFTs E-marketplace provider?

• Metaverse services provider?

DWTC Free Zone Crypto License – Dubai World Trade Center is an exclusive free zone that issues crypto licenses under the supervision of the Securities and Commodities Authority (SCA). The offered activities include Proprietary trading in crypto assets and Distributed ledger technology services.?

DAFZA Crypto License - Dubai Airport Free Zone Authority, in agreement with the SCA, supports cryptocurrency assets trading and provides crypto-related services to customers. Currently, it offers one type of crypto license that allows offerings, issuance, asset trading, and related financial activities.?

IFZA Crypto License – Established in 2018, the International Free Zone Authority is located in the center of Fujairah, the most distant emirate from Dubai. IFZA supports businesses in the cryptocurrency space and issues cryptocurrency licenses to them that allow them to exchange and store crypto assets and conduct other cryptocurrency transactions.?

Documents required for a crypto license in Dubai?

The following documents are required in the cryptocurrency business licensing process –?

• Business plan?

• Financial plan?

• Certified documents of the founders?

• AML/CFT policies?

• A review of business model and virtual asset activities?

• Approval from VARA?

• Other documents as required by the authorities?

Apply for a Crypto License in Dubai?

The basic steps to apply for a cryptocurrency license in Dubai are as follows:-?

• Register a legal entity and choose a business name?

• Choose a suitable jurisdiction and evaluate the licensing requirements?

• Open a company bank account and deposit the minimum authorized capital?

• Prepare relevant documents?

• Obtain the license?

Shuraa Business Setup can support you in preparing and completing all necessary procedures pertaining to your crypto company registration in Dubai and also help you obtain your crypto exchange license.?

Advantages of Crypto License in Dubai?

• Favorable tax environment – The tax on personal income and corporate income is 0% in Dubai. Even the income derived from international activities is also not taxed. In addition, the government of Dubai places no restrictions on foreign currency or any taxes on imports and exports.?

• Absence of double taxation – Due to the 123 double tax treaties of the UAE with other jurisdictions, companies are relieved from the burden of paying extra taxes.?

• No customs duties in the GCC - Dubai facilitates trade and export by placing no customs duties in the Gulf Cooperation Council (GCC). The government of UAE is actively working to create a favorable environment for business, that encourages investment and job creation.?

• 100% repatriation – The entrepreneurs operating their business in the UAE can return full profits and capital to their country. This not only enables investment protection but also boosts confidence among investors.?

• Fintech-sphere support – The UAE government is willing to adapt to new technologies and strengthen its position as an advanced economy. That is why it conducts half of its transactions on blockchain platforms.?

• No minimum investment requirements – The UAE is an attractive destination for startups and small businesses due to the absence of minimum investment requirements. This means entrepreneurs can establish their businesses with minimal financial investment and avail the opportunity to grow in a promising market with high potential.?

• No requirements for residency and quota of local employees – Foreign entrepreneurs can fully own their company without the involvement of resident partners. Moreover, there are no restrictions on hiring local employees. This provides them the freedom to hire more staff.?

• Use of English language and US dollars – The UAE accepts US dollars, which makes it easier to conduct business transactions with simplified calculations and bookkeeping. Moreover, the business language used here is English which facilitates communication between organizations.?

• Legal protection and compliance – A crypto license in Dubai ensures that the business operates within the legal frameworks of VARA, thereby maintaining the legitimacy and security of operations within the country.?

• Global connectivity – The strategic location of Dubai offers supreme connectivity to major global markets. Moreover, the city hosts over 100 international trade shows annually providing plentiful opportunities for networking and business expansion.?

• Advanced infrastructure – Dubai boasts world-class social, transportation, and economic infrastructure that facilitates the process of starting and operating a cryptocurrency business. It supports the efficient operation of cryptocurrency-related activities and enhances its productivity and growth.?

Cost involved in obtaining a Crypto License in Dubai?

For entrepreneurs and businesses planning to enter the dynamic market of digital currency, a crypto license is a great option. However, the cost involved in securing a license can vary depending on several factors such as the license type, the chosen jurisdiction, and other professional services. Minimum cost requirement of a Crypto license in Dubai, which ranges between AED 30,000 and AED 50,000.

Conclusion?

If you are looking for support and assistance to set up your crypto trading business, then connect with Shuraa Business Setup. It offers specialized services in the acquisition of a crypto license in Dubai. Their team of professionals is well-versed in cryptocurrency activities and therefore, can provide support from start to finish, ensuring compliance with all regulatory requirements of the authorities.???

Connect with Shuraa experts and they will tell you how to make it possible.?