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 The UAE supports cryptocurrency trading and transactions. Investors and business owners can enjoy favorable policies, and obtaining a Crypto License in Dubai is an attractive option with various license options to start the journey with blockchain technology and crypto trading.Â
The UAE offers appropriate license options under various free zones. The benefits of cryptocurrency licenses in Dubai and the UAE, regulations, steps, and names of free zones have been discussed here.
Advantages Of Getting A Crypto License
You enjoy an amiable tax environment: Corporate income tax is 0%. And, the investor does not face currency restrictions.
Zero Custom Duties: In GCC, businesses face no custom duties in the Gulf Council (GCC). This makes trade easier for business owners.
No requirements for Residency & Quota of Local Employees: Companies are not required to get a certain number of local employees. Therefore, business owners do not face residency and quota.
Double Tax Treaties: In the UAE, companies can decrease their tax burden because of the 123 double tax treaties.
100% Repatriation: Business owners can enjoy investment protection as they can return 100% of profits and capital to the country.
Steps To Apply For A Crypto License In Dubai
Undergo registrations: Register for a legal entity. And, choose a business name. Business owners can consult with crypto experts while selecting names and registering their businesses.
Evaluate License Requirements: After registering for your business, the next step is to select a jurisdiction and evaluate the licensing requirements.
Open Corporate Bank Account: Create a corporate bank account and set it as per the bank’s guidelines.
Apply For A Crypto License in UAE: Obtaining a crypto license in Dubai and other parts of the UAE is easy. However, you can consult with experts and select the free zones according to the requirements. For the process, you need to follow processes created by the Financial Services Regulatory Authority (FSRA), the Dubai Financial Services Authority, and the Securities & Commodities Authority (SCA).
Proper Documentation: From selecting names to launching a business and other tasks, maintain proper records and documentation of each step.
Benefits Of Crypto Business In The UAE
Crypto License in Dubai and the UAE comes with several benefits.
- Business owners can enjoy foreign ownership of a local enterprise.
- Investors do not need to pay taxes on all individual income.
- Investors need to pay 0% on income for up to 50% years of the business.
- No trade tax rates are applicable.
- No restrictions on employment
- Investors can withdraw profit to foreign accounts.
Requirements For Crypto Trading Business In UAE
All the documents and customers’ data should be secured.
Copies of the passports of all business owners must be submitted to get a crypto license in Dubai.
Customer registration and identification processes (verification of documents and others) must be conducted by AML/CFT.
Timely submission of documents and other reports must be ensured.
Active cooperation with regulators and authorities must be required for details, trading, and other updates. We also offer freezone and mainland business setup in Dubai.
Overview of Crypto Regulation in UAE
| Project time frames | 4 to 6 months |
| State fee for application | 25 000 USD |
| Required share capital | from 100 000 USD |
| Corporate income tax | 9% |
| Annual supervision fee | 50 000 USD |
| Local staff member | AML Officer & Director |
| Physical office | Required |
| Accounting audit | Required |
| Sustainability | Sustainable |
| Bank account options | Some European EMIs, Midshore EMIs |
Types Of Crypto License In The UAE
DMCC
DMCC (Dubai Multi Commodities Center) is good for you to begin your crypto journey. This is because license and legal facilities are available in DMCC. To start, the investors need to register a company with DMCC.
You can get these types of crypto licenses at DMCC:
Cryptocurrency trading: With this license, you will be able to do business with digital assets.
Distributed Registry License: You can operate with database management and other services related to the distributed registry technologies.
IFZA
The International Free Zone Authority (IFZA) also provides crypto license services in the UAE. The authority allows crypto trading and other business activities provided with suitable terms and conditions.
The applicant has to fulfill certain requirements to obtain the license such as registration process, submission of documents, maintaining finances, and others. Furthermore, the investors can also shift to other zones as IFZA helps in moving and other activities.
DAFZA
Dubai Airport Free Zone (DAFZA) is another platform to settle your crypto license and start your business. DAFZA and Dubai Securities Authority (DSA) have signed an agreement in support of crypto assets and trading.
The platform offers amiable legislative support and a regulatory framework. Therefore, many business owners tend to start their entrepreneurship in DAFZA.
Investors can obtain a cryptologic license for cryptocurrency trading (SAA regulates this license). Assets, issuance, documentation, and other financial activities are handled under this license.
ADGM
Regulators supervise Abu Dhabi Global Markets (ADGM) and the regulations for crypto licenses were made back in 2018. It is said to be the first jurisdiction in the world to create a cryptocurrency transactions framework.
Investing in crypto under ADGM is easy and safe because the authority deals swiftly with risks such as money laundering, data protection, cryptocurrency exchange, storage, and others.
Investors can apply for the license in this global market as the license covers various aspects including license, storage, trading of currency, management of assets, and others.
DWTC
Dubai World Trade Center (DWTC) is another one of the safest free zones to obtain crypto licenses in Dubai. Established in 2015, the center supports the launching and maintenance of cryptocurrency businesses in Dubai. It supports virtual assets, blockchain, crypto documents, and others.
DWTC cooperates with the Virtual Asset Regulatory Authority (VARA) to permit and maintain crypto companies. Moreover, Binance (cryptocurrency exchange) has also signed an agreement in coordination with DWTC to regulate crypto trading.
Investors can enjoy the following licenses:
A distributed registry license that permits the creation and management of databases.
A cryptocurrency trading license that enables trading transactions for assets that run under blockchain technology.
Found out More
To find out more about getting a cryptocurrency license in Dubai, contact us. Our team will get back to you within 24 hours.
Frequently Asked Questions
The cost of a license and further formalities depend on the law enforced in the UAE. The average cost can range from €6000 and can increase to €25,150 and more
No corporate tax is applicable if you use cryptocurrency for trading or get it as a salary. But, you may have to pay the Value Added Tax worth 5%.
As per the details, the average cost is around AED 40,000 or more.
Achieving a crypto license in Dubai is easy and approachable. You can contact the regulatory authorities of the country where you want to start a company.
Achieving a crypto license in the UAE can take from 4 to 12 weeks.