How to start a cryptocurrency business in Dubai, UAE

How to start a cryptocurrency business in Dubai, UAE is one of the trending topics for foreign investors and entrepreneurs, but before that, it’s important to understand what cryptocurrency is.

Cryptocurrency is decentralized digital money based on blockchain technology. It has no central authority managing or maintaining the value of cryptocurrency. Instead, these are broadly distributed among cryptocurrency users via the internet. Some of the familiar versions of the cryptocurrency are Bitcoin, Ethereum, Dogecoin. Cryptocurrencies can be mined or purchased from a cryptocurrency exchange. While cryptocurrency may seem like an asset class, purchasing it can be risky as you need a fair amount of research to have a complete understanding of how the system of cryptocurrency works.

But the fact that the value of cryptocurrencies 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 cryptocurrency business in Dubai, UAE

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

• UAE has recently introduced the “Blockchain Strategy 2021” which aims to help foreign entrepreneurs pursue trade and business in this industry. Within this, 50% of government transactions are projected to be conducted using blockchain technology.
• The Financial Services Regulatory Authority (FSRA), the financial regulator of Abu Dhabi Global Markets (ADGM) has become the first regulator in the UAE to issue comprehensive guidance and regulations on carrying out cryptocurrency trade.
• Currently, there are more than 400 crypto businesses operating in the UAE. This number is expected to grow to 1000 by the year 2022, considering 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 blockchain technologies in Dubai. This center is home to over 100 organizations in the crypto space, with approximately 900 more having applied for the license.
• 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.
• Dubai also hosted its first Crypto Expo, which soared the crypto assets in the region.

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

• Decide on a company name: the first step is to decide on a company name that should not include any blasphemous phrases, abbreviated terms, or names of well-known organizations. It should be clear and catchy.
• Select Jurisdiction: decide whether you want to start a cryptocurrency 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.
• Apply for cryptocurrency license: with the above decisions made, you can apply for a cryptocurrency license. You can make this application directly to DMCC.
• Meet compliance requirements: cryptocurrency 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 cryptocurrency license in Dubai, UAE

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

• Obtain a commercial license from Dubai Multi-Commodities Centre (DMCC)
• 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 cryptocurrency license in Dubai

Steps to follow to obtain a cryptocurrency license in Dubai, UAE:

• Download and fill-up the cryptocurrency license form from the respective authority of the place you want to set up your company in
• Attach and submit the cryptocurrency license form with the company’s and all shareholders names
• Submit all required documents to the respective authority where you are setting up your company
• Complete the payment to the respective authority that provides a cryptocurrency license to you
• If all are checked out with the application form and official company documents, then the authority will provide the cryptocurrency business license within a week of approval
• The places to get these licenses from are:
  • Dubai Multi-Commodities Centre (DMCC)
  • Dubai Airport Free Zone Authority (DAFZA)
  • Abu Dhabi Global Market (ADGM)

How MBG Helps

Knowing how crucial cryptocurrency and its trade can be, how to start a cryptocurrency business in Dubai, UAE can be equally strenuous.

MBG maps and understands this industry well to meet your requirements efficiently and help you throughout the process of setting up a crypto business in Dubai, UAE. We ensure that we help you in a stable business setup in UAE and guide you about not just the company formation in Dubai, but also what you can expect, how you can manage and grow your business there.

To know more about our services, you can find us at Business Setup In UAE