As the market for cryptocurrencies evolves, there is no doubt that very soon crypto will become the currency of tomorrow. Today, entrepreneurs are venturing into the crypto startup landscape because of the immense growth potential of the industry.
Being a cosmopolitan and a hub for startups, Dubai is emerging as a global hub for cryptocurrency and blockchain technology. What also makes a difference is that Dubai has a progressive business and regulatory framework that supports these new-age technologies.
A crypto license in Dubai offers a door for businesses to operate legally in the crypto space in the region. This is a must whether you are planning to launch a crypto coin, run a crypto exchange, or offer crypto-related solutions or blockchain-backed services.
This guide will offer you an insight into the entire process of getting a crypto license and the steps involved in doing so.
Choosing Dubai for Your Crypto Business
There are multiple reasons why Dubai suits as a global crypto capital and entrepreneurs find it convenient to establish their crypto ventures in this place.
- Due to pro-business regulations, tax advantages, and a cosmopolitan infrastructure, the ecosystem is best for new ventures and established businesses alike.
- Support from the Dubai and the UAE governments for blockchain and crypto technology also makes the ecosystem secure and transparent.
- The presence of free zones like the Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC) is suitable as these offer dedicated environments for crypto businesses.
Types of Crypto Licenses in Dubai
The main types in Dubai are:
- The Blockchain Service License is for service providers offering blockchain-related solutions. This applies to businesses that do not directly trade in cryptocurrencies.
- A Cryptocurrency Trading License is for businesses like crypto exchanges involved in selling and buying cryptocurrencies.
- Crypto Wallet Service License is for businesses that operate crypto wallets or store and manage crypto coins.
- ICO License is ideal for businesses planning an ICO or Initial Coin Offerings.
Step-by-Step Process to Obtain a Crypto License in Dubai
Getting a crypto license involves the following steps:
- Identify the Nature of Your Business Activity
The first step is to understand the nature of your crypto business. What exactly is your business going to do – operate a crypto wallet, a crypto exchange, launch an ICO, or work as a blockchain consultant? This will help you pick the most suitable license for your business.
- Select a Jurisdiction
Crypto businesses in Dubai are either based out of the Free Zones or the Mainland. You will need to select the jurisdiction to start with. Leading free zones for crypto businesses are DSO, DIFC, and DMCC. Businesses based out of the Mainland are governed by the Department of Economic Development.
- Finalize the Company Name
Next is the time to choose an exclusive name for your business. It should be in sync with the naming conventions of Dubai. Remember, the name is not a disrespect to the religious sentiments of the local community. Also, the name should be available for registration.
- Documentation
Paperwork is an essential step when applying for a license, especially a cryptocurrency license. Some of the documents required are –
- A proof of residential address, like utility bills.
- A NOC (No-objection certificate) from the present employer
- Depending on the jurisdiction, proof of initial investment
- Passport copies of all shareholders and directors
- A detailed Business Plan
Besides these mandatory documents, there could be additional documents required for each jurisdiction and license type.
- Application Submission
Submit the application and documents to a suitable regulatory body, like the DIFC or DMCC. A security deposit may be required based on the jurisdiction.
- Application Reviewal
The authorities will review the application due diligently and verify the application. They may verify the background of the shareholders and directors. They will also evaluate your business plan.
- Get an Initial Approval
The initial approval comes through provided the application meets the requirements. Now you can set up your physical office and meet other conditions. Remember, in most jurisdictions, you will need to have an office to run your business.
- Open a Corporate Bank Account
If you are running a cryptocurrency business in Dubai, you will need to open a corporate bank account as per compliance standards. You need to look for a bank that specializes in handling crypto companies.
- Pay the Fees For Your License
The next step is to pay the necessary fees to finalize the licensing process. Remember that the fees will vary from jurisdiction to jurisdiction. It also varies depending on the license type. Once the payment is done, you will get your cryptocurrency license.
Compliance and Regulations for Crypto Businesses
To maintain your crypto license, you will need to meet Dubaiโs regulations and compliance standards. This includes –
- Your business will need to comply with and implement robust Anti-Money Laundering (AML) Policies.
- Your business will need to comply with data protection laws.
- Maintain accurate records of all transactions and report them to regulatory authorities when required.
Remember that non-compliance with the regulations can attract penalties and you can even get your license suspended.
How ConsultZone Simplifies the Process?
If you are a first-time entrepreneur, it may be a bit too complicated to set up a crypto business in Dubai. ConsultZone can assist you in multiple ways –
- The experienced team at ConsultZone offers expert guidance through each step of the process. They will also help you with choosing a jurisdiction, documentation, and submitting your application.
- They will also ensure that the right documents are in place and in order. This helps reduce the likelihood of rejections and delays.
- The team at ConsultZone offers customized solutions depending on the requirements and goals of your business.
- The team is well-networked with banks in Dubai for cryptocurrency. They assist in opening corporate bank accounts for your business.
- The team offers ongoing support to clients, for example, license renewal services, compliance updates, and more.
Conclusion
The progressive ecosystem of Dubai makes it an ideal destination for setting up a cryptocurrency business. A crypto license in Dubai is a mandatory requirement for businesses to operate legally and also serve the global market. Since the process involves multiple steps, this can be a complex ecosystem and it is best to take help from professionals to navigate through hassle-free.
