Business Setup in Dubai

Cryptocurrency License in Dubai

Cryptocurrency License in Dubai UAE

Cryptocurrency License in Dubai, UAE

If you have been wondering about the steps to start a cryptocurrency business in Dubai, You are at the right place. We will discuss the steps required for obtaining a cryptocurrency license in Dubai and the requirements for a cryptocurrency business in Dubai. Besides that, you will also find out how to start a cryptocurrency business in Dubai. It is the right time to start your own cryptocurrency business in Dubai.

What is Cryptocurrency?

A cryptocurrency is a form of digital money similar to fiat currencies but managed by peer-to-peer networks. You can use these currencies to pay for nearly anything over the internet. The rise in the popularity of cryptocurrency has prompted many payment giants to accept the currency. However, there are some risks associated with cryptocurrency. 

Here are some of the biggest concerns to understanding cryptocurrency, you need to know what it is and how it works.

  • As a relatively new technology, cryptocurrency is still considered speculative. As such, you should always do your research before investing in cryptocurrencies. 
  • It’s also essential to invest conservatively to reduce your risks. Because cryptocurrencies are still relatively new, governments have not yet developed concrete laws governing them. Furthermore, cryptocurrencies run on a decentralized system and cannot fall under a single jurisdiction. The lack of centralized authority can pose a legal complication if the system is used illegally. The use of cryptocurrencies can also raise privacy issues, especially in countries where governments are attempting to restrict access to sensitive information.

How to Get a Cryptocurrency License in Dubai, UAE

Obtaining a Cryptocurrency license in Dubai UAE will allow you to start offering crypto-related services. This license will enable you to provide all the services required by the cryptocurrency industry.

You must remember to follow the below guidelines laid out by the government to start a Cryptocurrency business in Dubai, UAE.

  • To obtain a crypto license in Dubai, you must first form a company with the Dubai Multi-Commodities Center, the UAE’s Central Bank. 
  • Your business must comply with strict cyber security laws and secure customer information. 
  • The application process can take as little as two weeks, and you can choose your workplace and make any necessary payments as soon as possible. 
  • Once you receive your license, you can begin working on your business plan and securing financial information.

Cost of Cryptocurrency license in Dubai UAE?

To operate a crypto-currency business in the UAE, you must obtain a commercial cryptocurrency license. These licenses are required to engage in crypto trading, buying, and monitoring and require a minimum of AED 30k or 50k in the capital. The cost of a cryptocurrency license in Dubai mainly depends on the license you wish to obtain, and some jurisdictions require more money to obtain a permit than others. Obtaining a DMCC crypto license is inexpensive, but it requires a minimum investment of AED 50,000. While the licensing fees may be high, the benefits far outweigh the cost.

Cryptocurrency License Cost Breakdown

Service Name

Cost in AED

Initial Approval fees

1,035

Registration fees

9,020

Memorandum of Association MOA

2,020

Estimated crypto trading License cost

20,000

Make My Company Professional fees

7,000

Visa cost

6,500

Total Crypto License Cost

45,575 AED

While there is no fixed cost for a crypto license in Dubai, it is worth contacting one of our business consultants to get an estimate.

Requirements to get a cryptocurrency license in Dubai, UAE

The UAE is one of the few countries that have not banned the use of cryptocurrency. To get a cryptocurrency license in Dubai, you must follow the regulations the Central Bank of the UAE set forth. Investors must meet specific requirements to get a license for a cryptocurrency business in Dubai.

You must meet specific regulatory requirements to operate a cryptocurrency business in Dubai:

  • You must register with the financial free zone department.
  • You must make your capital and operational resources visible for at least six months.
  • You should also show that you will not engage in deceptive activities.
  • Update information and stats regarding your financial resources. Provide accurate information to the Dubai Financial Authority.
  • Precise, accurate, and actual records are essential for a smooth setup of the crypto business in Dubai, UAE.
  • You must keep your data in a crypto wallet to protect your crypto assets.
  • All members of your company will need to have authentic passport copies.
  • It is a requirement to have a DED-approved license to set up a crypto business in Dubai.

You can apply for a cryptocurrency license in Dubai, UAE, through Make My Company.

What are the benefits of having a Cryptocurrency license in Dubai?

One of the top reasons to start a Cryptocurrency Business is the fact that the UAE offers numerous advantages for a crypto company. UAE is one of the leading countries regarding business-centric policies and the economy, and it is now paving the way for the crypto world. By establishing a crypto business in Dubai, you can build solid corporate relationships with other companies and stakeholders in the country. Moreover, the UAE offers a robust marketplace where you can connect to prospective buyers.

If you are interested in starting a crypto business in the UAE, you should consider whether you want to establish your business in a free zone or mainland. Both have different advantages. To choose the right place for your business, you should consider your business type, size, and activity. Consult us as we are trustworthy business advisors to avoid any pitfalls. It is vital to understand your requirements before setting up your crypto business in Dubai.

As the third-largest cryptocurrency market in the region, the UAE is an ideal place to set up a crypto business. Its regulatory environment is favorable for cryptocurrency businesses, and the UAE is home to Binance, the world’s largest crypto exchange by trading volume. It will help you get started with your business. The UAE will also be a great place to set up a crypto exchange – you can use the Dubai World Trade Center to launch your company in the city.

A few crucial Benefits of starting a Crypto Business in Dubai, UAE:

No Taxation

No Taxation when starting a cryptocurrency business is possible in the UAE, thanks to the low VAT rate of 5%. However, there are some restrictions on what you can and can’t do in the country. If you are considering starting a cryptocurrency project, you should seek additional advice before proceeding. In UAE, you are not required to pay VAT when trading cryptocurrencies or to earn a salary, and you should also check if your project is VAT-exempt.

A crypto business can earn greater profits and profit ratio over time. It can be an NFT-based business, a crypto payment gateway, an exchange platform, or a cryptocurrency lending facility. There is enormous potential for cryptocurrency to change business and establish a peer-to-peer medium of exchange. There are many benefits to running a cryptocurrency business in Dubai. If done correctly, it could revolutionize an industry.

To establish a cryptocurrency business in UAE, it is essential to obtain a license from the government. You must also comply with money laundering legislation or face severe penalties. In Dubai, you can conduct a cryptocurrency exchange business at low costs. Blockchain technology protects virtual currency payments. Furthermore, your customers are protected from financial fraud. And your data is secure. The blockchain technology that enables this is a significant plus.

Global Recognition of UAE

The United Arab Emirates (UAE) is a pioneer in developing new technologies and is becoming the leader in the crypto business world. Its central authorities actively encourage research, development, and innovation, and emirates like Dubai and Abu Dhabi are now becoming smart cities with an integrated range of digital services. The UAE is a globally renowned hub for cryptocurrency businesses, and the local government has begun to accept digital money as a form of payment. As a bonus, foreign investors are welcome to start their cryptocurrency businesses here.

One of the main benefits of establishing a cryptocurrency business in Dubai is zero taxes for cryptocurrencies in the country. The UAE government will introduce a 9% corporate tax in June 2023. Hence, Dubai is one of the most attractive locations to start a crypto business. However, if you do not wish to operate from a free zone, you can also set up your business on the mainland. Once you have established your business, you can have hassle-free access to all emirates.

Aside from the low taxes, the UAE offers various tax exemptions for cryptocurrency projects. The crypto tax is zero percent for salaries and trading. Besides that, the UAE also has a low-Value Added Tax (VAT) rate of 5%. Before establishing a cryptocurrency business in Dubai, be sure to learn more about VAT exemptions and regulations in the country. While there are many advantages to operating a cryptocurrency business in Dubai, the startup should be aware of some of the common mistakes to avoid.

Less Compliance in UAE

For the first step, you must decide what kind of company to register. In Dubai, a cryptocurrency business license is mandatory, but you can also get a local sponsor. In Dubai, cryptocurrency trading businesses are regulated similarly to other financial companies. You must follow all the regulations and AML policies to avoid financial fraud or penalties. Furthermore, you must submit regular accounts for auditing.

The incorporation process of a cryptocurrency business is easy. You can use our services to help you with the process. In Dubai, incorporating a cryptocurrency business is easy because the country has lower tax compliance requirements. After that, you must choose a suitable name for your business. You can either opt for a simple or attractive name for your business. However, you must choose a name that is not too confusing or too long.

The government is aware of the impact of cryptocurrency and has started its initiatives in the area. The DMCC free zone, Dubai’s government-approved commodities trading authority, recently launched the DMCC Crypto Centre. By embracing cryptocurrency, Dubai has welcomed a new form of monetary standards that are open and traceable. The DMCC Crypto Centre also encourages cryptocurrency trading as a legitimate business opportunity.

How to start a cryptocurrency business in Dubai

If you consider starting a cryptocurrency business in Dubai, you’ve come to the right place. The United Arab Emirates is internationally recognized as an economic powerhouse and a business leader. However, many risks are associated with starting a cryptocurrency business, including currency fluctuations and volatility. To protect yourself from such risks, diversify your revenue streams and approach venture capital firms. Here are three reasons why opening a cryptocurrency business in Dubai makes sense.

The UAE has a tax-free business environment, an excellent incentive for crypto businesses. As the UAE is a tax-free jurisdiction, it is becoming increasingly popular among investors. Additionally, several new companies have emerged. The UAE government has taken steps to simplify the cryptocurrency business and launched the Digital Currency Regulatory Framework. By doing this, the UAE hopes to attract more foreign investment and, in turn, more jobs and revenues.

The first step in starting a cryptocurrency business in the UAE is obtaining a commercial license from the DED. You’ll need to submit a commercial license form and copies of passports for yourself and all your partners. You should also have a clear record of crypto wallet activities and capital resources. It is best to consult a reputable business advisory before setting up your business. The business license can also help you with the legal requirements.

The government of Dubai is supportive of cryptocurrencies and has established the DMCC Crypto Centre, which offers financial assistance to foreigners. CV Labs, a Swiss government-backed incubator, supports several cryptocurrencies, including Tezos, Ethereum, and Polkadot. To set up your own cryptocurrency business in Dubai, you must submit a business plan and apply to the DMCC’s Crypto Centre.

Steps to start a cryptocurrency business in Dubai

You must first choose between establishing a free zone or a mainland establishment. Both jurisdictions have their pros and cons. While free zones offer a variety of advantages, mainland establishments have the benefit of gaining easy access to all the UAE states. You must also register your company and get a commercial license in Dubai.

If you plan to set up a cryptocurrency business in the UAE, there are specific steps you must follow:

  • Finalize Your Company Name

The first is to create a unique and attractive name. A distinctive and unique name may be something you want to use as your trademark. When choosing a name for your business, make sure it is memorable and compliments your business.

  • Select The Preferred Jurisdiction

There are two options available for setting up a business here. You can choose between a free or mainland zone for your crypto business. You can choose between a free or mainland zone depending on your type of crypto business, size, and activity. Make My Company is a trusted business advisory that can help you find the right spot.

  • Register to Get a Commercial Cryptocurrency License

After you have completed the above, you can apply for a Dubai cryptocurrency license. You must apply to Dubai’s relevant regulatory agency to obtain a registration for a cryptocurrency license. Making a partnership with Make My Company is a great idea, and we provide business setup consulting.

  • Meet the Requirements

Every business that wants to establish cryptocurrency trading in Dubai must comply with all regulations and requirements. You could face sanctions, punishments, or even business repercussions for your carelessness.

We can help you to start a crypto business in Dubai.

The UAE has recently shifted its focus from oil and gas to new technologies. Central authorities are encouraging research and development. Emirates like Dubai and Abu Dhabi have become intelligent cities with various digital services integrated to ease the lives of residents. The Dubai local government has embraced this new trend and even started accepting digital money payments. With the rise of cryptocurrency, the UAE is now a prime place for foreign investors to start a crypto business.

There are several steps involved in the process of incorporating a crypto business in the UAE:

  1. The entrepreneur must have a clean wallet record and precise expenses.
  2. They must integrate crypto assets with one of the UAE financial-free zone-authorized departments.
  3. The entrepreneur must submit a comprehensive business plan to the authorities.

We can assist you with the entire process.

The UAE’s government recognizes cryptocurrency’s role in the region and has encouraged cryptocurrency exchanges in the financial-free zone. The DMCC, the government-approved authority for commodities trade in the UAE, has launched a Crypto Centre to facilitate this growing industry. The free zone has partnered with more than a hundred crypto organizations to establish a cryptocurrency hub that will foster innovation and promote the growth of the UAE’s cryptocurrency industry.

Besides, We are the best place, to begin with, to gain a free zone license for your cryptocurrency venture in the UAE. It will boost your business significantly. By following these steps, you will be on your way to a successful crypto business in the UAE. It is essential to remember that the cryptocurrency market is vast, and there is a lot of competition. We will make the entire process smooth and stress-free.