United Arab Emirates (UAE) is in its endeavor to become a cryptocurrency hub attracting businesses to invest in UAE’s crypto market globally. Getting a crypto license in Dubai helps entrepreneurs and investors Due to its emerging economy, corporate-friendly policies, innovative business landscape, and other beneficial policies, cryptocurrency companies are rapidly increasing and more SME businesses are considering a transition into the crypto world. In addition, Dubai has also entered into the Metaverse world enticing investors to switch to a Metaverse-based business environment.
Do you also want to get a crypto license in Dubai? You should look no further as you have landed in the right place.
Without further ado, delve into the article to explore how to start a crypto exchange business in Dubai as well as how to get your Crypto license in mainland and freezones.
What Is Cryptocurrency?
A cryptocurrency asset or tokens like Bitcoin, Ethereum, Litecoin, and more are digital assets that you can use to invest, trade, and make a transaction. These crypto-assets circulate without the need for a central regulatory authority such as a bank or government. Cryptocurrencies are built on a decentralized, secure, and transparent distributed ledger technology called the blockchain. Blockchain technology is highly secure enabling users to sell, buy and trade securely.
Investors can transition into crypto businesses and earn higher profits eventually. In addition, the profit ratio might get higher with time depending on the business type you launch. A very few profitable crypto business ideas include NFT-based business, crypto payment gateway, crypto loans, crypto exchange platforms and more.
Starting A Crypto Business in Dubai
Establishing a business is never an easy feat, especially when it is about launching a crypto business in Dubai. With the number of choices available, it becomes daunting to decide which can be the best business to establish that can bring ultimate profits. Cryptocurrency holds a significant potential to change the whole business mechanism, democratize finances and establish a peer-to-peer medium of exchange.
Crypto License in Dubai
With a significant rise in Bitcoin and crypto transactions in the world and new cryptocurrencies like Tether, Polkadot, Solana, and more joining the market, the industry is growing tremendously. Investors looking to invest and start a crypto business would have to obtain a crypto trading license in Dubai to legalize their companies. The crypto license is the way to hold all crypto trading, buying, monitoring, and investing as a whole.
The Cost of Crypto License in Dubai
Investors who want to establish their business in cryptocurrencies must meet the minimum requirement of cost of a Crypto license in Dubai is between AED 30 000 to AED 50 000.
Crypto 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 0000|
|Avyanco Professional fees||10 000|
|Visa cost||6 500|
|Total Crypto License Cost||48 860 AED|
There is no fixed crypto license cost in Dubai but to know more on how much this trading license will cost you it is better to contact one of our business setup consultants so that you can get a proper guidance.
The requirements to Get a Crypto trading License in Dubai
When deciding on establishing a crypto business in Dubai investors must meet certain requirements that are essential to obtain a commercial license.
Here are a few things that an investor will be required to accomplish:
- Ensure that all the crypto assets are incorporated with the financial free zone departments in the UAE.
- Your operational and capital resources need to be disclosed and visible for more or less 6 months.
- You will need to update information and stats about your financial resources and provide accurate information to the concerned authority in Dubai.
- Clean, real and accurate records are a necessity for a smooth crypto business setup process in Dubai, UAE.
- You will need to acquire a crypto wallet to secure your financial crypto assets.
- Authentic passport copies will be required of all of the members involves in your business.
- A DED-approved license is also a must for a successful crypto business setup in Dubai.
Benefits of Setting up a Crypto Trading in Dubai
Dubai crypto market is highly emerging over the past years attracting investors to setup businesses in virtual spaces and cryptocurrencies. A very few benefits of starting crypto trading in Dubai are as under:
- No Taxation
Dubai always ensures to introduce corporate-friendly policies for businesses so that they can make greater profits. Hence, there is no UAE tax at the moment thus businesses will no longer have to pay additional taxations having an opportunity to make the best out of their business. However, if the government introduces a taxation policy then it will be only 9% corporate tax that will be effective from June 2023. So as compared to other countries investors or employers operating crypt businesses in Dubai can save a lot of their hard-earned money.
- Global Recognition of UAE
The United Arab Emirates is globally recognized for its business-centric policies and leading economy in the world. After becoming a global economic hub, UAE is now all set to become a leading crypto business world for aspiring SMEs. As having a crypto business in Dubai, you will have an opportunity to make strong corporate relations with other countries and states around the world. No matter wherever you are operating your business, you can have a robust connection with other businesses, stakeholders, investors, and buyers as well.
- Less Compliance in UAE
There is no extra taxation when operating and residing in Dubai. Businesses won’t have to pay excessively on corporate tax and there is no income tax. There is less taxation compliance in Dubai and the UAE as compared to other countries. Hence, Dubai is one of the most beneficial locations to start your crypto exchange business in a limited time period.
Steps to Start a Crypto Business in Dubai
Crypto enthusiasts around the world can start their business in crypto by considering below mentioned steps:
- Finalize Your Company Name
The first and foremost thing is to come up with a name that’s simple, unique, and attractive. You may also want to allot a name for your business that you tend to make your trademark as well. Hence, while choosing one name, ensure selecting the right name that doesn’t only sound memorable but compliments your business as well.
- Choose The Preferred Jurisdiction
There are two major options available when it comes to setting up a business in Dubai and the UAE in general. You may choose either crypto setup in mainland or setting up crypto trading in a free zone. Both mainland and free zone come with different benefits. You may choose according to your crypt business type, size, and activity. It is suggested to consult with a credible business advisory like Avyanco that can help you land in the right spot.
- Register for a Commercial Crypto License
Once you are done with the above consideration, you can now register for a crypto license in Dubai. In order to get your registration for a crypto license, you are required to send the application to the concerned regulatory authority in Dubai. It is better to collaborate with the crypto business setup consultancy such as Avyanco for a smooth process.
- Comply with The Requirements
To setup a crypto trading in Dubai every business must meet and comply with mandatory requirements, regulations, and laws introduced by the government. Any carelessness in this regard might make you face penalties, punishment, and even business repercussions.
Documents Required To Get Crypto License In Dubai
In order to start a crypto company in Dubai, you will need to have several documents ready. This includes:
- A Functional Business Plan: If you want to start a crypto business in Dubai, you need to have a functional and thorough business plan that covers all aspects of your business spanning over 5-10 years. The more practical and applicable it is, the better your chances of acquiring a crypto license in the UAE.
- Passport Copy of The Owner and Shareholders: The owner of the business will have to present not only their passport copy but the passport copies of all the shareholders as well.
- Visa Copy of The Owner and Shareholders: Similar to the passports, the owner will also have to present their Visa copy along with the visa copies of all the shareholders.
- Name For The Company: The Owner will have to present several name choices for the company to be reserved. If it is available, it will be reserved. This is to avoid conflict with an existing business if the name matches.
- Lease Agreement: If you’re planning on using a virtual or physical office, you’ll need to have a solid lease agreement in place.
- VARA Approval: You’ll need to get the green light from the Virtual Asset Regulatory Authority or VARA. Basically, they’re the ones who make sure everything’s on the up-and-up. To get their approval, there are a few things you need to have ready. You can learn all about VARA below):
- Business model overview.
- A functional and practical business model.
- Make sure you’re on top of everything related to your virtual assets like cryptocurrency and tokens. Define your “Virtual Asset Activities” by keeping track of things. For example, prices, distribution, and how many coins or tokens you have.
- You need to define your target audience.
- You need to have your financial projections defined and at the ready.
- And you need to disclose all of your sources for funds.
Virtual Asset Regulatory Authority – VARA
Dubai tends to be the primary hub for blockchain and crypto as well as Metaverse encouraging new industries emerging around virtual assets and spaces. The UAE government after introducing a new law on the Regulation of Virtual Assets (VAL) became a leading jurisdiction for potential crypto investors looking forward to investing in virtual currencies like Bitcoin, NFTs, Litecoin, Ethereum, and more.
Under the recent law introduced by Sheikh Mohammed bin Rashid Al Maktoum VARA acts as the governing authority to manage, supervise, control, and regulate digital and crypto-assets. The legislation provides a legal framework for companies or organizations dealing with cryptocurrencies.
Where Can You Get Crypto License In Dubai?
Dubai has some great business zones for all things crypto-related. To get your crypto license, you can apply in one of the free zones. DMCC and IFZA were actually the first two free zones that allowed for any cryptocurrency activity.
Now, more free zones have adopted it, and you can start your crypto business in any of the following free zones:
- RAKEZ Freezone,
- DWTC Freezone,
- DAFZA Freezone
You can now start your own crypto business in the mainland. But instead of trying to figure everything out on your own, you can easily get some help from Avyanco. We’re experts in the field and can make the process of starting your own crypto business a lot easier and hassle-free!
How Avyanco Can Help You Setup a Crypto Company in Dubai?
Under the VARA legislation, to establish a business in cryptocurrencies the investors must have to acquire a crypto trade license in Dubai. With a Crypto license in UAE, businesses can trade and sell cryptocurrencies, tokens, and more.
However, for a smooth business transition in cryptos or to open a crypto business in Dubai, you must get in touch with a trusted business setup advisory like Avyanco that can help you streamline every step from planning to selecting a zone to requesting and acquiring a crypto exchange license to a successful inauguration of your business.Feel free to contact us for any of your queries.