Crypto Currency License in the UAE

About crypto currency business

Crypto currency is decentralized digital money based on block chain technology. It has no central authority managing or maintaining the value of crypto currency. Instead, these are broadly distributed among crypto currency users via the internet. Some of the familiar versions of the crypto currency are Bitcoin, Ethereum, Dogecoin etc… But the fact that the value of crypto currencies is skyrocketing is what has made them popular as trading instruments. To an extent, they are also being used for cross-border transfers.

Overview of crypto currency business in Dubai, UAE

The UAE has aimed to become a pioneer in business and also has a view on the crypto currency industry. With the rising curiosity in crypto currency investments, the trade and business in this industry are also taking place in Dubai, the UAE. Following are some of the major highlights of UAE’s crypto currency landscape:

• UAE has recently introduced the “Blockchain Strategy 2021” which aims to help foreign entrepreneurs that practice trade and business in this industry.
• The Financial Services Regulatory Authority (FSRA), the financial regulator of Abu Dhabi Global Markets has become the first regulator in the UAE to issue comprehensive guidance and regulations on carrying out crypto currency trade.
• Currently, there are more than 400 crypto businesses operating in the UAE. This numberis expected to grow, considering the UAE is accelerating its efforts to boost the digital economy.
• The frameworks of the Free Zones of Dubai and Abu Dhabi encourage entrepreneurs in the crypto space to set up exchanges while laying out rules for ethical trade and protecting consumers.
• The DMCC Crypto Center that was launched in May’21 is heavily promoting cryptographic and block chain technologies in Dubai.
• The UAE has introduced favorable measures to boost digital assets trading and rising interests. In September’21, the Securities and Commodities authority signed a deal with Dubai World Trade Center (DWTC) authority to support the trading of crypto assets.

Steps on how to start a crypto currency business in Dubai, UAE:

• Appoint experienced consultant: get first consulting service related to crypto currency industry in UAE
• Decide on a company name: decide on a company name that should not include any offensive phrases, abbreviated terms, or names of well-known organizations.
• Select Jurisdiction: decide whether you want to start a crypto currency business in Dubai Free Zone or Mainland. In the Free Zone, you will benefit from zero currency restrictions, plus capital and profit repatriation. Whereas, on the Mainland, you’ll have to work with a local sponsor and pay corporate taxation starting from 1 st of June 2023.
• Apply for crypto currency license: with the above decisions made, you can appoint chosen consultant to submit for a crypto currency license.
• Meet compliance requirements: crypto currency trading business is regulated in the same way as any other financial trading in Dubai. So, it’s important that not only you are correctly licensed but also, comply with Anti-Money Laundering (AML) regulations and submit regular accounts for audit.

Requirements for the crypto currency license in Dubai, UAE

The requirements to get a crypto currency license in Dubai are as follows:

• Copy of the passport of all the partners in the business
• A completely clean crypto wallet record with no fraudulent transactions or activities
• All operational expenses and capital resources should be visible for 6 to 12 months of operation
• All crypto-assets should be incorporated with ‘UAE Financial Free Zone’ departments approved by the government
• Provide a proper business plan along with a crypto currency license in Dubai
• The places to get these licenses are:
  - Dubai Multi-Commodities Centre (DMCC)
  - Dubai Airport Free Zone Authority (DAFZA)
  - Abu Dhabi Global Market (ADGM)