crypto license in Dubai

How to get a crypto license in Dubai?

Written by Mayra
Written by Mayra

Business Setup Advisor

Table of Contents

How to get a crypto license in Dubai?

Crypto is one of the buzzwords today. From buying things to trading, cryptocurrency has become huge. If you know what it is and how it works and are swirling with interest in it, why not get a crypto license in Dubai?

It’s not surprising anymore to hear that Dubai has seamless regulations. And because of these lenient regulations and fabulous policies, Dubai is being called the new haven for web startups.

This year, the Dubai government recently approved legislation to control the use of digital assets like non-fungible tokens (NFT). Therefore, it is now regarded as one of the top locations for cryptocurrency. Also, The Dubai World Trade Center is now a crypto zone. This makes it possible for all businesses dealing with virtual assets to do business there easily.

This blog is for you if you’re also interested in doing a cryptocurrency business. It will walk you through everything there is to know about how to get a cryptocurrency license in Dubai. First, let’s check out some of the popular cryptocurrencies in Dubai. You can apply for a cryptocurrency license in Dubai in the following free zones: DMCC, DIFC.

What Are Some of the Popular Cryptocurrencies in Dubai?

Here is a list of the top 10 cryptocurrencies in Dubai that you can invest in.

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Tether (USDT)
  • Cardano (ADA)
  • Ripple (XRP)
  • Solana (SOL)
  • Binance Coin (BNB)
  • Polkadot (DOT)
  • Dogecoin (DOGE)

Note: Proprietary trading in crypto-commodities includes the buying and selling of crypto-commodities developed on distributed ledger technology applications. But, it does not include acting as an exchange, financial services, brokerage services, banking services, storage services, or payment processing.

What Are the Benefits of a Crypto Licence in Dubai?

Before we get to the process of getting a cryptocurrency license in Dubai, it’s best if you know the perks that come with it.

1. Tax Benefits

The Dubai Government always ensures to introduce corporate-friendly policies. Therefore, businesses can make greater profits. And currently, businesses do not have to pay any additional taxes. But, The government may introduce a new taxation policy in 2023. According to this policy, companies may pay 9% corporate tax. Consequently, compared to other countries, the investors operating in crypto in Dubai save a reasonable sum of their hard-earned money.

2. Leading Crypto Business Hub

As surprising as it may sound, Dubai is set to become a leading crypto business hub. Especially for SMEs. You get to make strong corporate connections with entrepreneurs from other countries. Also, an excellent opportunity to expand your business. The best news is that FTX and Kraken are heading to Gulf wards too.

3. All Round Acceptance

The Dubai government has started drawing up policies that encourage people in Dubai to invest in some or the other cryptocurrencies. According to stats, 25% of middle east millionaires already invest in some kind of crypto. Also, various local businesses like grocery delivery services and Dubai property firms accept crypto payments. Consequently, this has floated the idea of starting to pay salaries in cryptocurrency.

Documents Required for Crypto License in Dubai

There are a lot of important legal documents that you need to gather. The business setup experts at the Bizinvestfirm can give you a detailed list. However, here’s an overview of the essential documents you must submit.

  • A Functional Business Plan
  • Passport Copy of The Owner and Shareholders
  • Visa Copy of The Owner and Shareholders
  • Name For The Company
  • Lease Agreement
  • VARA Approval

How to Get a Crypto License in Dubai: A Step-by-Step Guide

Dubai has become a hub for cryptocurrency businesses, attracting investors from all over the world. If you’re looking to establish a crypto business in Dubai, acquiring a crypto license is an essential step. Below is a detailed guide on how to get a crypto license in Dubai:

1. Choose the Right Free Zone

The first step to obtaining a crypto license in Dubai is selecting the appropriate free zone or mainland. Popular zones such as Dubai Multi Commodities Centre (DMCC) and Dubai Silicon Oasis (DSO) offer favorable conditions for cryptocurrency businesses. Each zone has different benefits, so it’s crucial to choose one that aligns with your business goals.

2. Determine Your Business Activity

Before applying for a crypto license, define your business activity. Dubai offers several categories for crypto-related businesses, including cryptocurrency trading, blockchain development, and crypto asset management. Choose the one that best fits your business model, as this will impact the license and regulatory requirements.

3. Legal Entity Formation

Next, you’ll need to decide on the legal structure of your company. You can choose between a Limited Liability Company (LLC), Free Zone Establishment (FZE), or a Branch Office. Each has its own benefits and limitations, so consulting a legal expert is advisable.

4. Prepare the Required Documents

Gathering the necessary documents is a critical step in the license application process. Typical documents include:

  • Passport copies of the owners and shareholders
  • Proof of residential address
  • A business plan
  • Proof of funds or capital

Make sure all documents are in order to avoid delays.

5. Apply for a Crypto License

Once you’ve chosen the business activity, legal structure, and gathered the documents, it’s time to apply for your crypto license. The application process will depend on the free zone authority or government body overseeing the license issuance. You may be required to attend interviews or provide additional documentation.

6. Secure Office Space and Apply for Visas

As part of the process, securing a physical office space in Dubai is mandatory. Many free zones offer flexi-desk or shared office options to meet this requirement. Additionally, you will need to apply for resident visas for you and your employees, if applicable.

7. Open a Corporate Bank Account

Finally, once your license is approved, you can proceed to open a corporate bank account in Dubai. Many local and international banks in Dubai offer tailored banking solutions for crypto businesses, though some may have specific compliance requirements.

What Is the Cost of a Crypto License in Dubai?

If you’re an investor looking to start a cryptocurrency business in Dubai, one of the first steps is acquiring a crypto license. The cost of a crypto license in Dubai typically ranges between AED 21,500 and AED 35,500. However, the actual cost may vary depending on the regulatory requirements and the free zone or mainland area where you choose to set up your business.

How Bizinvestfirm Can Help You Setup a Crypto Company in Dubai?

Dubai’s business-friendly environment, strong legal framework, and strategic location make it an ideal place to start a cryptocurrency business. By following these steps, you can efficiently obtain a crypto license in Dubai and launch your venture in one of the world’s fastest-growing markets for digital assets.

You can seek help from the legal or business setup experts at the Bizinvestfirm. They’re well-versed in the rules and process of getting a cryptocurrency license in Dubai. Hence, they will guide you at every step.

Also, they’ll help you gather all the documents, decide which currency to invest in, and get your crypto license in Dubai without any hassle. So, all you need to do is give them a call, and they’ll take care of the rest.

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