The UAE has welcomed blockchain technology as a new empowering force for business. The Emirates Blockchain Strategy 2021 emphasizes UAE’s initiative to go paper free – making it one of the most advanced economies in the world. With strong backing from government bodies and significant interest from its flourishing business sectors, Dubai is poised to emerge as a global hotspot and leader for innovative blockchain applications. The DMCC Crypto License in Dubai offers payment transactions and supply chain management to proof of provenance and tokenized commodities.
Ever considered starting your cryptocurrency business in Dubai? Setting up your business dealing with cryptocurrency in the DMCC Freezone may just be the right move for you. Here’s how you could get a DMCC crypto license.
What is Cryptocurrency?
To begin with, cryptocurrency is a paper-free, completely digital currency often seen as the future of exchanging currencies. Although it follows a similar concept to digital modes of payment, it is also vastly unique to what is on the current market. Many people believe that cryptocurrency is more advantageous than a traditional currency, thus many investors in Dubai are drawn to it.
Benefits include:
- Cryptocurrencies are transparent, open, and traceable.
- Transfers are made anonymously.
- Cryptocurrencies have a stable value because they are unregulated by any authority.
Individuals are the only ones who can access the money, not banks – giving more control over the flow of funds. - Cryptocurrencies are an international exchange of money without a change in value.
What Are the Requirements for a Crypto License?
- A commercial license form
- Address of residency
- Verification of the company’s name
- Comprehensive business plan
- Passport copies of all partners
- A clean crypto wallet with no fraudulent behavior or activities
- Proof of business operations of at least 6 to 12 months
- Government-approved incorporation of crypto assets with the UAE Freezone departments
Laws Governing Cryptocurrency in the UAE
The Financial Services Regulatory Authority at the Abu Dhabi Global Market governs the laws around cryptocurrency. It publishes guidance on the usage of cryptocurrencies in business and the criteria for acquiring a Cryptocurrency License in the UAE. The Authority also monitors blockchain, Bitcoin, and cryptocurrency firms in the region to prevent money laundering and other illicit acts with the new payment method.
Why Choose DMCC Free Zone For Your Crypto Business?
The Dubai Multi Commodities Centre (DMCC) Freezone is at the global forefront of trade and enterprise, and with home to more than 21,000 businesses. It is also one of the only two Freezones in the UAE that permit the issuance of cryptocurrency.
With crypto and blockchain technologies taking the markets by storm, there is no doubt about the enormous potential it has to transform global trade and supply chains. The DMCC Crypto License offers many opportunities for entrepreneurs including co-working spaces, SMEs, and a wide range of incubator and accelerator programs.
Types of Crypto License In Dubai
The DMCC authority provides you with crypto licenses. Currently, two different types of licenses are available, which you can choose according to the features of your business. In order to obtain the license, you need to register with DMCC. Furthermore, you have to provide your record of the established trade, along with your history of investing, trading and blockchain company formation. The two types of licenses are:
1. Crypto Trading License
DMCC Freezone authority provides this license to those who want to invest in digital currencies. It enables businesses to trade ownership in crypto communities. In addition, you can benefit from activities such as purchasing and selling commodities. The firm must have a minimum percentage capital of AED 50,000 to obtain the license. However, they must also meet all the legal requirements.
2. Distributed Ledger Technology Services License
This license will get you access to database management services. Also, it comprises distributed ledger technology. It does not allow you to engage in any financial transactions. Furthermore, no currency transactions are permitted. This license covers all of the services required in a business. It also includes data management and blockchain services.
How Long Does it Take to Get a DMCC Crypto License?
The DMCC crypto license could take between two weeks to six months, based on your documentation and verification process. To make this process hassle-free, contact one of our business professionals, who can guide you through it easily.
How Much Does the DMCC Crypto License Cost?
Investors willing to secure the DMCC crypto license and explore the market must meet the minimum capital requirement of AED 50,000. Furthermore, you’ll also need preliminary approval from the Freezone’s jurisdiction for the license issuance.
Do remember that you can’t associate any other business activities when you have this license. Therefore, it is advisable to apply for a crypto license in Dubai only if you want to leverage various blockchain and cryptographic technologies as part of your business operations. In addition, you’re independent in choosing the cryptocurrency exchanges you wish to utilize for your company.
Concluding Note
Your decision to explore cryptocurrency in the DMCC Freezone has the potential to reap rich dividends if you have in-depth knowledge of how the process works. Therefore, don’t hesitate to contact expert business consultants at Business Link. The license costs approximately AED 35,000, depending on the business. This covers the company formation and expenses for the application for the crypto license. We ensure that the DMCC crypto license doesn’t have any additional or hidden charges.
