How to Get a Crypto License in UAE?
Globally, investors are making a swift move towards the growing trend of investing in Cryptocurrency to secure their money. This new era of the digital revolution is projected to overshadow the traditional means of business in the near future.
UAE with its vision to stay ahead of every other nation in the race of digital revolution has marked prominent success in adapting cryptocurrency. It has become the eye candy of investors and entrepreneurs gearing up to invest in cryptocurrency.
To fuel the crypto adaption in the entire country and attract investors, the UAE government has eased the process of acquiring a Crypto License in the UAE. After getting a crypto license in UAE, investors can get into crypto trading by setting up the necessary tech for distributed computing.
This blog post will discuss why you should get a crypto license in UAE, what are the necessary steps to get a license, and all other relevant details.
Let’s discuss this without any further delay.
How to Apply for Cryptocurrency License in UAE?
You need to go through the following hierarchy of steps to get a crypto license in DMCC or any other UAE Free Zone:
Step 1 – Choose your company name
Start by deciding on an appropriate and relevant name for your crypto business in UAE. Once you finalize your company name, you need to send it to the governing body of the relevant Emirate for final approval. If are facing any confusion with choosing a unique business name, you can collaborate with the trusted partners of Airzone who are ready to filter some unique business names for your crypto business in UAE. Additionally, you need to fulfill all the Company Name Reservation Rules and Guidelines as made mandatory by the UAE government.
Step 2 – Complete all legal obligations
Crypto businesses in the UAE fall under the authority of VARA (Virtual Asset Regulatory Authority) which provides a legal framework for investors in accordance with the UAE’s Virtual Asset Law. The rules are defined based on the particular legal obligations of different Free Zones in the UAE. You acquire dedicated office space for your crypto business in UAE Mainland or Free Zone.
Step 3 – Applying for a cryptocurrency license in UAE
The most crucial step is to apply for a crypto license in UAE. The governing bodies that regulate the crypto domain in the UAE include:
- FSRA – The Financial Services Regulatory Authority
- SCA – Securities and Commodities Authority
- DFSA – Dubai Financial Services Authority
The process involved the completion of all mandatory and supportive documents necessary to get the approval done. If you have no clear idea about documentation and the application process, it is highly recommended to get on board Airzone. Airzone can help you find the most suitable business formation providers that can help you in your entire journey of setting up a crypto business in the UAE.
Step 4 – Ensure all regulatory compliances
The Crypto industry in the UAE is highly regulated in accordance with the standards set by Security & Commodities Authority (SCA) under Crypto Assets Activities Regulation (CARR). The regulation is intended to regulate the offering, issuing, and trading of Crypto Commodities in the UAE.
The regulation also ensures anti-money laundering and anti-terror financing compliances as directed by the FATF (Financial Actions Task Force). Keep in mind, the UAE government is highly active in initiating any legal proceeding against any company that abstains from following regulatory obligations as per the law.
Requirements for Getting the Cryptocurrency License in UAE
To ensure the fulfillment of all the compliance and regulatory procedures, the UAE government has set eligibility criteria that you must meet to get a crypto license in UAE.
Below is the mandatory set of requirements that you must follow to get your crypto license in Dubai or elsewhere in the UAE
- Getting the trading license form offered by the DED Department of Economic Development.
- Submitting the passport copies of all business partners with valid residence or work visas.
- A valid and legitimate record of a crypto wallet without any deceitful financial transactions
- Ensuring the availability of all your business expenses and capital amounting to not less than AED 50,000.
- All your crypto commodities must be approved by relevant governing bodies of UAE financial Free Zones.
Benefits of Setting up a Crypto Business in UAE
Below are some notable perks of getting a crypto license in UAE to set up a cryptocurrency business.
- The use of virtual currency is secure due to the advancement of blockchain technology.
- A cryptocurrency company in Dubai has relatively low operating costs. Some transactions are even free of charge.
- The Crypto domain is highly valued all over the world, and Dubai is no exception. Those who want to establish a cryptocurrency company in Dubai can do so relatively quickly.
- In addition to that, customers benefit from personal data protection from the start and are protected against potential financial fraud.
A List of Freezone Which Offer Crypto Licenses in UAE
Crypto License in UAE has started gaining popularity as UAE Free Zones started allowing businesses to embrace cryptocurrency and store assets in crypto as a modern way to do business. You can easily set up your crypto business in UAE by acquiring a crypto license in
- DMCC – The Dubai Multi-Commodities Center
- DAFZA – Dubai Airport Free Zone Authority
- SRTI – Sharjah Research Technology Innovation Park
- DIFC – Dubai Internation Financial Centre
Among all DMCC is known for its most seamless process of getting a crypto license in Dubai. Investors are more inclined towards applying for a crypto license in DMCC as a fast track to set up their crypto business in UAE. The cost of a crypto license in DMCC is around AED 30,000 to 40,000 depending upon the scale of the business.
FAQs About Cryptocurrency License
What is Cryptocurrency?
As the name suggests, cryptocurrency incorporates encryption and decryption methodology as a secure and private mode of monetary exchange. Cryptocurrency or crypto is a modern concept of decentralized banking with blockchain technology that leverages encryption for secure transactions.
Apart from this, cryptocurrencies have zero dependencies on any centralized entity or regulatory body as it primarily depends on a decentralized mechanism to keep a record of all transactions and create new units.
An end-to-end encryption model of cryptocurrency enables all involved stakeholders to make transitions digitally from anywhere. Crypto transactions are purely based on digital ledgers that recognize particular transactions instead of actual money being transited in the real-world scenario.
According to a recent study, the UAE is the third biggest country that provides the most suitable ecosystem for crypto with over 30 percent of its population already possessing some kind of commodities in crypto. Some high-performing cryptocurrencies in UAE are
- Bitcoin Cash
- Lite Coin
How Airzone can help you Start a Cryptocurrency Business in UAE??
Getting a Crypto license in UAE requires you to get a comprehensive know how of UAE’s business laws and financial regulations. To help you get your crypto license in UAE, Airzone can provide you with all the necessary resources and assistance. We can help you find a trusted business formation partner within 24 hours who can help you complete all the requirements for a hassle-free process of getting a crypto license in Dubai or other Emirate states.
Whether you want to set up your crypto business in the UAE Freezone or Mainland, feel free to connect with Airzone and get on board with our trusted partners for a range of company formation services.
You can get your crypto license in UAE from authorized Free Zones in Dubai like DMCC. If you don’t have enough knowledge about Free Zones in the UAE, we highly recommend checking out our detailed article on various free zones in the UAE if you need more information.
Being a significant player in the global crypto market, UAE can offer remarkable growth opportunities for your crypto business. Investors and entrepreneurs all around the world are considering UAE as their next business destination.
We have a comprehensive guide for you if you want to learn more about how to start a business in Dubai. You should be well prepared to establish a company in the UAE if you have a thorough understanding of the country’s business scene.
Start now to leverage a range of perks offered by Free Zone and Mainland UAE locations with the hassle-free process of getting your crypto license.