Want to Start a Crypto Business in Dubai? Get Your License Here!

Cryptocurrency is a digital currency that can be mined or traded similar to the stock market’s shares and stocks. Dubai has become the top choice for people to start their cryptocurrency business after getting their crypto trading license Dubai.

Are you thinking of starting a crypto business in the UAE? Then you have definitely come to the right place! Connect Business Center has penned down this guide just for you. In this guide, we explain how you can get your crypto license UAE way quickly. We also go over why Dubai is the perfect fit for your crypto business, kinds of crypto licenses available in Dubai, benefits of a crypto trading license Dubai and steps to apply for one.

Why Dubai for Crypto Business?

Prior to coming across our blog, you may have been wondering why Dubai for your crypto business. You do not have to dwell on that thought any longer since we come with answers; to all your questions and to all your problems.

Dubai is a hub or you can say business center for crypto business. Choosing Dubai gives you many opportunities and advantages. For cryptocurrency businesses, it is the best market in the world making it the most sought after city by crypto investors.

Types of Crypto Licenses Available in Dubai

The types of crypto licenses available in Dubai are:

A. Mainland License

A mainland license is for you if you choose it as your jurisdiction when registering your entity. Connect Business center can help you get your mainland crypto license.

B. Free Zone License

Free zones are usually the most opt for by investors. The freezones offering crypto trading license in Dubai are:

DMCC (Dubai Multi Commodities Center)
DAFZA (Dubai Airport Free Zone Authority)

DMCC (Dubai Multi Commodities Center)
Cryptocurrency businesses prefer Dubai Multi Commodities Center (DMCC) the most. A DMCC Crypto License lets you perform commercial operations. You can trade, store and manage your cryptocurrency with a DMCC crypto license. You may also create software related to cryptocurrency or offer some cryptocurrency-based services with this license.

There are two categories of DMCC crypto license based on your business activity nature:

Crypto trading license
Distributed ledger technology service

DAFZA (Dubai Airport Free Zone Authority)
DAFZA has an agreement with SCA. It helps businesses with their activities concerning crypto.

Selecting freezone license benefits you in a lot of ways:

Capital repatriation
100% profit return
No currency restrictions

C. Offshore License

Connect Business Center can help you set up your offshore entity and get your offshore crypto license Dubai.

Advantages of Dubai crypto license

There are some advantages to crypto license in UAE, namely:

A favourable tax environment as there is no need for you to pay tax
No import and export tax rates
No currency restrictions
Cryptocurrency is fully legalized
Absence of double taxation
100% return of profits
No custom duties in GCC
Fintech spheresupported by UAE at its state level
No minimum investment required
No residency requirement

You get full foreign ownership

No quota of local employees

Steps to apply for a crypto license in Dubai

Now that you are on the way to apply for your crypto license in Dubai, there are some steps you will follow. We have outlined them here for you:

REGISTER A LEGAL ENTITY

Your first step to get your crypto license in UAE is registering a legal entity.

CHOOSE A NAME FOR YOUR CRYPTOCURRENCY BUSINESS IN DUBAI

Choose a unique name for your cryptocurrency business that follows the naming conventions.

CHOOSE A JURISDICTION

Next step is to choose your jurisdiction. It is up to you to decide which jurisdiction suits you more.

You can obtain your crypto license UAE from the following zones:

DMCC
DAFZA
DWTC
IFZA
ADGM

If you end up selecting free zone as a jurisdiction to obtain your crypto license UAE, you will benefit knowing DMCC happens to be a preferred freezone among cryptocurrency businesses in Dubai.

LICENSING REQUIREMENTS FOR A CRYPTOCURRENCY BUSINESS IN DUBAI

These are some requirements for a cryptocurrency business to obtain a crypto trading license Dubai:

Customers data is to be protected with a high level of security using:
- Multi Factor authentication
- Prevention measures for unauthorized access
- End-to-end encryption

Timely reporting for transparency:
- Operational data
- Financial reports

Register with Virtual Asset Regulation Authority (VARA). VARA makes sure of the following:
- Regular audits
- Compliance Reviews
Clear internal policies and procedures regarding:
- Risk management
- Compliance control
- Transaction processing
- Staff training
A physical office

INITIATION OF THE PROCESS OF OPENING A CORPORATE BANK ACCOUNT

Open a corporate bank account
You will deposit the minimum capital needed to attain the crypto license UAE

COLLECT THE NECESSARY DOCUMENTS

The next step for you is to collect all your important documents for your crypto trading license Dubai application:

A DED-issued commercial license
Copy of passports of all business partners
Statement of expenses documenting for the past 12 months
A business plan
An NOC from Securities and Commodities Authority (SCA)
Financial plan
Certified documents of the founders
AML/CFT policies
Any other documents as required

OBTAINING A CRYPTO LICENSE IN Dubai

Assuming you have followed all the above steps and have followed the requirements and procedures stated by these authorities, you will get your crypto license in Dubai:

Financial Services Regulatory Authority (FSRA)
Securities and Commodities Authority (SCA)
Dubai Financial Services Authority (DFSA)

Conclusion

As the interest in cryptocurrency is growing, so does the need to keep up with latest business developments. Cryptocurrency businesses thrive in Dubai as it is the perfect place for them to flourish.

If you wish to set up your cryptocurrency exchange business over there, you will first get a crypto license UAE and then you are good to go.

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