The introduction of Web3 has made cryptocurrencies a hot topic. It is not surprising that Dubai is interested in exploring cryptocurrency and has already taken the necessary steps for a city that has always been ahead of the curve. Therefore, the time is now if you want to get a crypto license in Dubai.
The city has become one of the world’s most well-known markets for bitcoin platforms due to the remarkable growth of bitcoin firms which have fundamentally altered business operations globally. The United Arab Emirates is among the top four nations ready to adopt cryptocurrency. According to statistics, the country ranks 6.2 out of 10 in terms of crypto readiness.
You can buy and sell distributed ledger-based crypto-commodities (Proprietary Trading) in Dubai if you have a cryptocurrency license. However, it cannot be used as a broker or exchange. Now, if you want to get a crypto license, keep reading.
This blog will walk you through cryptocurrency, its need, procedures, and costs of a cryptocurrency license in Dubai.
What Is Cryptocurrency?
Cryptocurrency is a digital or electronic currency that uses encryption to protect transactions. Furthermore, rather than a centralised issuing or regulatory organisation, cryptocurrencies rely on a decentralised mechanism to log transactions and issue new units.
Additionally, because it is a peer-to-peer system, anyone from anywhere can send and receive money. Cryptocurrency payments are not physical currencies that can be carried around and exchanged; instead, they are recorded digitally in a database that identifies individual transactions. Some examples of cryptocurrencies include:
Why Do You Need a Cryptocurrency License in Dubai?
A crypto license in Dubai is required to start your cryptocurrency business. The Dubai cryptocurrency license is classified as a “commercial license.” This “commercial license” governs all commercial processes involving trading in Dubai.
The cryptocurrency exchange company and commerce in Dubai are linked to Bitcoin and other crypto coin trading. With this digital currency trading license, you can conduct all other significant cryptocurrency tradings in Dubai.
Getting a crypto license will significantly enhance your business. Some of the benefits include:
- Your company’s transaction expenses are significantly reduced due to the absence of gateways and service fees.
- Cryptocurrency trading provides strong encryption, ensuring the security of all transactions.
- Given the recent uptick in bitcoin trends, it will help you distinguish yourself from your competitors.
- The Dubai government has begun developing rules to encourage Dubai residents to invest in various cryptocurrencies. According to statistics, 25% of millionaires in the Middle East have already invested in cryptocurrency.
- For Dubai tax residents, there is no personal income tax on bitcoin earnings. There is no tax on capital gains, business revenue, or salary, whether you trade actively or simply hold.
What Do You Need to Know Before Getting a Crypto License in Dubai?
Technical knowledge has proven to be highly beneficial. To start a cryptocurrency business, you must have a strong interest in technology. You must have specialised skills to understand the fundamental blockchain technologies properly.
The blockchain industry is not for the faint of heart; it is a high-risk, high-reward venture. Because blockchain is a new technology, it is prone to volatility and fluctuating exchange rates. Diversifying a company’s product line and portfolio is one of the finest things a crypto license holder can do to avoid overexposure to cryptocurrencies. To weather market downturns, risk-averse organisations should diversify their revenue streams.
How Do I Apply for a Dubai Cryptocurrency License?
To obtain a cryptocurrency license in Dubai, follow the steps mentioned below –
1. Choose a Company Name
Do you already have a business name for your cryptocurrency? You can submit it to the appropriate governing body for approval. If not, contact business experts who can assist you in cutting down your list of potential company names.
You must also ensure that you follow all name convention rules established by the government. Furthermore, avoid using insulting language or phrases that denigrate someone’s sincerely held religious or sentimental beliefs.
2. Make Contact With the Appropriate Authority
The United Arab Emirates Virtual Asset Regulatory Authority (VARA) oversees cryptocurrency-related businesses. To begin a cryptocurrency venture in the DIFC free zone, for example, a company must have at least 5 years of legal existence in the cryptocurrency space in another country.
The DMCC, another free zone in the UAE, offers a self-proprietary crypto license, allowing you to launch your cryptocurrency business there.
3. Obtain Cryptocurrency Authorisation
The next step to obtain a crypto license in Dubai is permission. You must complete all necessary paperwork and approvals. Working with business license experts is therefore recommended. We file your application after carefully reviewing the data to ensure you receive your license in a single transaction.
4. Follow All Compliance Protocols
Like other forms of financial transactions, the UAE strictly regulates cryptocurrency trading. The SCA’s Crypto Assets Activities Regulation (CARR) rules establish general operational guidelines for cryptocurrency businesses and users.
There are also additional anti-money laundering and anti-terrorist funding regulations. These regulations and KYC and AML monitoring requirements necessitate a strong compliance network. It requires that all deposits and withdrawals be made only from the client’s bank account.
All cryptocurrency business owners must strictly adhere to all anti-money laundering regulations. Furthermore, your company must follow the approval and licensing standards imposed by the regulating bodies. Moreover, businesses that violate safety and compliance requirements face legal action from the government.
What Documents Do You Need to Get a Crypto License?
In the UAE, licensing for cryptocurrencies is strictly regulated. As a result, you need to present genuine documents. Some of them are as follows:
- A copy of your passport
- Passport-size photographs
- A copy of your entry visa
You’ll need to provide a few more documents. Contact the professionals at the Shuraa UK branch for the complete list of documents.
What Is the Cost of a Crypto License?
Obtaining a crypto license should be simple if you meet all the requirements. Although the crypto license cost in Dubai will vary depending on the applicable laws, it can generally range between 21,500 and 35,000 AED and may increase depending on the activity.
Get Your Cryptocurrency License in Dubai With Shuraa
Young investors who possess a crypto license in Dubai can benefit from a variety of attractive business options in this cutting-edge financial sector. Given the growing popularity of cryptocurrencies, now is an excellent time to contact Shuraa to obtain a license.
Our extensive experince and in-depth knowledge of the dynamics of the cryptocurrency scene in the UAE ensures that you are always ahead of the curve. We will walk you through the process in jargon-free language, take care of documents and obtain all the necessary permits on your behalf. All you need to do is give us a call and let us take care of the rest!