How to get a crypto license in Dubai, UAE

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October 18, 2023

Obtaining a crypto license in Dubai is a regulated process that involves several steps to ensure compliance with local laws and regulations.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security and operates independently of a central authority, like a government or a bank. It’s decentralized, making it a popular means of conducting financial transactions and investments globally.

Starting a Crypto Business in Dubai

Starting a cryptocurrency-related business in Dubai is subject to regulatory requirements and guidelines set by the local authorities. One of the most common cryptocurrency-related businesses is cryptocurrency trading, which requires a specific license.

Crypto License in Dubai

To operate a cryptocurrency trading business in Dubai, you need to obtain a crypto license. The relevant authority overseeing this is the Dubai Multi Commodities Centre (DMCC). They offer a license specifically for cryptocurrency activities.

Cost of Crypto License

The cost of a crypto trading license can vary based on several factors, including the type of license, the scope of activities, and the location within Dubai.

Requirements to Get a Crypto Trading License

1. Trade License Application
   Submit a formal application for a crypto license to the relevant authority, such as the Dubai Multi Commodities Centre (DMCC).
2. Passport and Visa Copies
   Provide passport copies and valid UAE residence visas for all shareholders, directors, and beneficial owners of the crypto business.
3. Memorandum of Association (MOA)
   The MOA outlines the business activities, share structure, and corporate objectives of your crypto company. Ensure that it complies with the legal framework for crypto businesses in Dubai.
4. Financial Statements
   Furnish audited financial statements for the previous fiscal year. The authorities may want to assess the financial stability of your business.
5. Business Plan
   Prepare a comprehensive business plan that outlines your business model, strategies, target market, marketing plan, and financial projections. This should include a detailed description of your crypto-related activities.
6. Anti-Money Laundering (AML) and Know Your Customer (KYC) Policies
   Develop and provide your AML and KYC policies, procedures, and protocols to demonstrate your commitment to compliance with regulatory standards.
7. Physical Office Lease Agreement
   Lease a physical office space within the DMCC Free Zone. Submit a copy of the lease agreement as proof of your office location.
8. Security Measures
   Document the security measures you have in place to safeguard customer assets, including data encryption, wallet security, and cybersecurity protocols.

Benefits of Setting up a Crypto Trading Business

1. Access to a growing market for digital assets.
2. Diversification of financial services in the region.
3. Potential for high returns on investment.
4. The flexibility of operating in a free zone with tax benefits.
5. Competitive advantage in the cryptocurrency and blockchain industry.

Steps to Start a Crypto Business

1. Conduct Market Research.
2. Develop a Comprehensive Business Plan.
3. Register Your Business.
4. Establish Compliance Procedures.
5. Set Up a Physical Office.
6. Apply for a Crypto Trading License.

For a seamless entry into the cryptocurrency business or to establish a crypto enterprise in Dubai, it’s crucial to engage a reputable business setup advisory firm. They can assist you in simplifying the entire process, from initial planning and zone selection to the application and acquisition of a crypto exchange license, ultimately leading to the successful launch of your business.