Over the years, Dubai has made tremendous progress with innovative technologies and booming sectors. People from different countries and different cultures find their place in this Arab land to experience inventing advancements. One of these technological innovations is cryptocurrency. Therefore, in order to keep up with the global advancements, UAE has taken massive steps in the blockchain and cryptocurrency sectors. DMCC crypto license is one such step that the Dubai government has initiated to change the dynamics of the global market. As a result, UAE is now the leading crypto hub in the world.
Not just in the UAE, cryptocurrency projects have become more and more popular and diversified. Thus, governments of different nations have implemented policies to regulate them. In today’s article, we will emphasize the advantages of the DMCC freezone and the necessary steps that you need to follow to obtain a DMCC crypto license Dubai.
What is DMCC crypto license?
The Dubai Multi Commodities Centre has launched the Blockchain Strategy 2021 and Cryptop centre to promote the cryptocurrency sector in the UAE. The Crypto Centre allows crypto investors to establish a crypto-based company within the region. On the other hand, for crypto businesses to pace up with other sectors, DMCC has developed a state-of-the-art infrastructure, robust regulations, and various facilities.
However, the investors need to be cautious before stepping into the water. Since this field is relatively new, it is important to understand the conditions and requirements for the crypto business setup in the DMCC freezone.
The most important task to accomplish this venture is obtaining a DMCC crypto license. The investor must obtain a valid crypto license to start a bitcoin business in the UAE legally. Thus, the DMCC freezone authorities offer crypto licenses to companies and entrepreneurs to trade and manage their crypto assets in the UAE.
A DMCC crypto license Dubai enables its owners as well as companies to indulge in crypto trading, monitoring, buying, and other related activities.
Cryptocurrencies are gaining huge popularity in Dubai. Therefore, it is providing opportunities to foreign investors to explore the lines of bitcoin trading, along with a host of new business possibilities. The experts at Shuraa have a complete guide for you to make you understand the crypto business in Dubai.
Types of DMCC crypto license
Just like any other business in Dubai, the investor of a crypto company needs to acquire a license from the relevant authorities. In this case, DMCC offers two types of crypto licenses based on the selection of business activities.
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Crypto Trading License
Issued by the DMCC Freezone authority, this license allows the investor to buy and sell crypto commodities. That means, it is issued to the companies that are involved in proprietary trading in Crypto commodities. However, companies engaged in activities such as crypto exchange, crypto brokerage services, financial services, banking services, payment processing, or storage services are excluded from this license.
Before applying for the crypto trading license at DMCC, you need to seek prior approval from freezone management. More importantly, this license has been strictly designed as a standalone license by the DMCC authorities. Hence, the company cannot include any other activities under this license. In addition to that, it should have a minimum share capital of AED 50,000.
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Distributed Ledger Technology Services
The companies that provide services like database management solutions and distributed ledger-based technologies such as blockchain are covered under this license. However, the companies holding this license are not allowed to trade or set up an exchange for currencies or cryptocurrencies. They are also restricted from providing any financial services, brokerage services, or payment processing as well.
Similar to the crypto trading license procedure, the companies seeking Distributed Ledger Technology Services license must first receive approval from the DMCC management. Alongside, it should also have a minimum share capital of AED 50,000.
Company formation consultants at Shuraa Business Setup can help you apply for a DMCC crypto license Dubai.
Advantages of operating with your crypto business in DMCC
We all know the UAE freezones offer abundant advantages to companies set up in their region. Similarly, DMCC has a lot to offer to the crypto companies that wish to establish in their jurisdiction, such as –
- 100% ownership of the company
- No intervention from local sponsors
- Exemptions from trade tariffs
- 100% repatriation of capital and profits
- Exemption from taxes for 50 years
- No restriction on foreign currency exchange
- Foreign employee recruitment allowed
Process of obtaining DMCC crypto license
To obtain a crypto license in DMCC, you need to understand the basic requirements and proceed accordingly. The application process for the same is as below –
- Fill out the application form at the DMCC authorities
- Submit the required documents
- Present a short business plan, along with proof of share capital to operate the business for the next few months.
- Find an office space as per your business requirements.
- Draft a rental agreement
- Make the payment for the crypto license
- Get the approval from the DMCC authorities
- Procure the license
- Apply for a UAE residency visa
- Open a corporate bank account for business transactions
Points to remember
- The investor must have sufficient capital to conduct the business activities for the foreseeable future.
- The business must adopt a strict KYC norm.
- All the business members must adhere to the financial laws of the UAE, such as Anti-Money Laundering, Counter-Terrorism Financing, etc.
- The business must follow transparency in submitting tax records and other financial statements. Deceitful activities are prohibited.
- Privacy of client information should be the priority of the company. The business must ensure the security of clients’ financial data against hackers and other cyber breaches.
- Records of the company’s capital resources and operational expenses must be well maintained, at least up to the past 12 months.
- All the business information must be safeguarded in a crypto wallet.
- All the business members must ensure submitting authentic information and valid documents to the authorities.
- Along with a crypto license, the business must also secure a commercial license issued by the Department of Economic Development.
The requirements of DMCC authorities for the crypto license are pretty straightforward. However, there are fair chances of rejection due to errors in the documentation process. Therefore, the applicant must give extra importance to the documentation part and assure that it doesn’t impact the application.
Conclusion
The UAE has incorporated blockchain technology and cryptocurrency as a powerful tool for business development. It is already under-preparation to adapt and grow together with future technologies. Moreover, with immense support from the government and significant interest from various business sectors, Dubai has emerged as a global hotspot.
So, if you want to join the crypto community in the UAE and explore technological advancements, then reach out to Shuraa Business Setup. Our seasoned team of business consultants has helped thousands of clients to set up and run their businesses successfully in the different emirates of the UAE.
Moreover, our representatives have complete knowledge of UAE’s business acts and regulations, including the crypto license laws. We ensure to keep our clients up-to-date with everything that is happening in the UAE business sector.
If you need further information regarding the DMCC crypto license, feel free to talk to our experts. Call us at +97144081900 or send your queries through WhatsApp message at +971 50 777 5554. Also, get email assistance at [email protected].
