Currently, the United Arab Emirates (UAE) is one of the key players in cryptocurrency and blockchain innovation around the globe. With their progressive regulatory frameworks and economic diversification zones, the two—Dubai and Abu Dhabi—pose excellent opportunities for crypto entrepreneurs.

This is a step-by-step guide on acquiring a crypto currency business license in Dubai and a study of the exceptionally entrepreneurial business setup environment in Abu Dhabi, with insights taken from Consultzone’s cryptocurrency license page.

Understanding Crypto Licensing in Dubai

Regulatory Authorities and Framework

The Virtual Asset Regulatory Authority (VARA): This local authority oversees crypto operations to ensure compliance with local laws and international standards.
Securities and Commodities Authority (SCA): Regulates cryptocurrencies on a federal level, including asset issuance and trading.
Dubai Multi Commodities Centre: This gives a special crypto license via its Crypto Centre for businesses involved in blockchain and crypto trading.

Types of Crypto Licenses

There are various types of licenses in Dubai to accommodate the different crypto business models:

Crypto Trading License: This license allows the business to trade in crypto commodities using applications on distributed ledger technology.
Distributed Ledger Technology (DLT) Services License: This license allows the company to provide services such as database management solutions or ancillary services based on blockchain technology.

Documents Required for Applying for a License

When applying for a cryptocurrency business license in Dubai, applicants should submit the following documents:

Business Plan: An elaborated document that describes the company’s objectives, activities, and financial projections.
Passport Copies: Proof of identity of all shareholders and directors.
Visa Copies: Residence permits for the shareholders and directors, wherever applicable.
Company Name Preferences: Multiple names are chosen for approval.
Lease Agreement: Proof of physical or virtual business premises.
VARA Approval: This is necessary for companies conducting operations within the jurisdiction of Dubai.

Cost of Obtaining a Crypto License

The following fees will vary by the free zone in question and the activities to be carried out in the free zone or outside its boundaries:

DMCC Crypto License

Roughly AED 20,000 per annum
Offers full services and regulatory support

IFZA Crypto License

An economical alternative
Ranging from AED 7,000 to AED 15,000 per annum
Good for start-ups

DWTC Crypto License

Around AED 25,000-30,000 per year
Has good infrastructure and business connections

Recent Developments

Recent developments clearly evidence the commitment to business setup Abu Dhabi:

Zodia Markets

A digital assets platform backed by Standard Chartered received regulatory approval for the virtual asset brokerage operations from Abu Dhabi, showing the extent to which the emirate draws international crypto firms within its borders.

MGX Investment

Abu Dhabi’s AI-focused investment fund, called MGX, has recently made an investment of $2 billion into Binance, marking the largest institutional investment into the cryptocurrency exchange and further affirming the region’s proactive approach to adopting crypto.

Setting Up a Crypto Business in Abu Dhabi

To start off with a crypto business in Abu Dhabi, the steps would include the following :

Select a Free Zone: Specialise with either ADGM or others like the Dubai International Financial Centre (DIFC), which enjoys various benefits and its regulatory framework.
Prepare Required Documents: As much as Dubai needs one to get a detailed business plan, identification documents, and lease agreements, that is how it is.
Acquire Regulatory Approval: Seek approval from the relevant regulatory authority, such as the FSRA in ADGM.
Set-Up Base Infrastructure: Set up office space and operational infrastructure facilities per regulatory requirements.

Advantages of Setting Up in Abu Dhabi

Tax Exemptions: Like Dubai, Abu Dhabi offers tax-exemption benefits for businesses in its free zones, which makes it an attractive location for cryptocurrency companies.
Access to Financial Institutions: Abu Dhabi Global Market (ADGM) regulations provide the basis for facilitating international financial institutions and investor access to businesses.
Stable Regulatory Environment: Safe and clear regulations make Abu Dhabi an excellent location for blockchain and cryptocurrencies.

How ConsultZone Can Help You

It is no easy feat to perform a business setup Abu Dhabi. Indeed, it can be complicated for beginners. ConsultZone is there to get you through that process. Offering superb consultancy services in the United Arab Emirates, ConsultZone helps with guidance and assistance in licensing and setting up your business.

Key Services Offered by ConsultZone:

Consultation for Business Setup: ConsultZone provides expert advisory services to help you choose the best free zone, jurisdiction, and licensing authority for your cryptocurrency business. Whether in Dubai or Abu Dhabi, it provides personalised recommendations tailored to your specific needs.
Document Preparation and Submission: ConsultZone helps entrepreneurs prepare their essential documents, such as business plans, compliance policies, and financial records, before submitting them to the authorities concerned.
License Application Assistance: ConsultZone has covered the entire application process for your licensing needs, including filling out forms, submitting documents, and, of course, following up with authorities. Their experience helps to ensure a smooth and efficient licensing process.
Office Setup: Whether you need a real or a virtual office, ConsultZone helps you find the best solution that is compliant with licensing requirements.
Continuous Compliance Support: When you get a license, Consultzone also helps you maintain your business’s good standing with regulatory authorities.

Thus, with ConsultZone, you do not need to worry about the cryptic complications of beginning your cryptocurrency business in the UAE.

Conclusion

Crypto enterprises in Dubai and Abu Dhabi have unique advantages, including favourable tax incentives and robust regulatory structures. Whether you wish to set up in Dubai or Abu Dhabi, acquiring a cryptocurrency business license in Dubai is the first step toward ensuring compliance and establishing a strong presence in the market.

ConsultZone assists entrepreneurs by guiding them through crypto licensing, business establishment, and regulatory compliance complexities. They offer everything from initial consultations to support after obtaining a license to help businesses succeed in the UAE crypto market.

Visit ConsultZone’s website to take advantage of their in-depth knowledge and start the process of launching your cryptocurrency business in Dubai or Abu Dhabi.

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2023-08-24

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