United Arab Emirates (UAE) is in its endeavor to become a cryptocurrency hub attracting businesses to invest in UAE’s crypto market globally. 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 start a cryptocurrency business 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 establish a crypto business in Dubai as well as how to get a Cryptocurrency license in Dubai.
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 Cryptocurrency Business in Dubai
Establishing a business is never an easy feat, especially when it is about launching a cryptocurrency 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.
Cryptocurrency 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 business in cryptocurrencies would have to obtain a commercial crypto license in Dubai to legalize their companies. The crypto license in Dubai is the way to hold all crypto trading, buying, monitoring, and investing as a whole.
The Cost of Cryptocurrency License in Dubai
Investors who want to establish their business in cryptocurrencies must meet the minimum requirement of cost of a Cryptocurrency license in Dubai is between AED 30 000 to AED 50 000.
Crypto License cost breakdown
Cost in AED
Initial Approval fees
Memorandum of Association MOA
Estimate License cost
|Avyanco Professional fees|
Total Crypto License Cost
48 860 AED
There is no fixed crypto license cost in Dubai but to know more on how much the license will cost you it is better to contact one of our business setup consultants so that you can get a guidance.
The requirement to Start Crypto Exchange 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 Starting a Cryptocurrency Business in Dubai
Dubai crypto market is highly emerging over the past years attracting investors to set up businesses in virtual spaces and cryptocurrencies. A very few benefits of starting crypto businesses 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 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 corporate tax or income tax. There is less taxation compliance in Dubai as compared to other countries. Hence, Dubai is one of the most beneficial locations to start your crypto business in a limited time period.
Steps to Start a Cryptocurrency 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. You may choose either mainland or a free zone for your crypto business. 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 Cryptocurrency License
Once you are done with the above consideration, you can now register for a cryptocurrency 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 establish a crypto business 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.
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.
How Avyanco Can Help You Setup a Crypto Business in Dubai?
Under the VARA legislation, to establish a business in cryptocurrencies the investors must have to acquire a trade license in Dubai. With a Cryptocurrency 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, 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 business license to a successful inauguration of your business.
Feel free to contact us for any of your queries.