How to Get a Cryptocurrency License in Dubai, UAE?

 To start your cryptocurrency company in Dubai you need to obtain a trade license to trade in Crypto. The cryptocurrency license is considered in the category of “commercial license”. What are crypto currencies? It is a digital or virtual currency that is secured by blockchain.

With a cryptocurrency license in Dubai you can buy and sell (Proprietary Trading) crypto-commodities developed on distributed ledger technology applications. However, it does not allow you to act as an exchange or brokerage.

UAE is quick to adopt new advances in technology and it is the same with cryptocurrency. The city is a growing hub for entrepreneurs looking to dive into cryptocurrency. To facilitate the development in the country, the government has released the Cryptocurrency License in UAE. Now is the prime time for you to get into the hype with the Cryptocurrency License in Dubai.

Some of the popular cryptocurrencies in the UAE are Bitcoin, Dogecoin, Ethereum, Tether, Polkadot, etc. As Bitcoin is accepted as a transaction currency all around the world, the market capitalization of cryptocurrency in the UAE was approximately USD 265 billion.

Requirements for the Cryptocurrency License in Dubai

For regulation purposes, the government of the UAE has provided some eligibility requirements that you need to meet before you can apply for the cryptocurrency license in UAE.

Here are the requirements for the cryptocurrency license in UAE:

• Obtain the commercial license form provided by the Department of Economic Development in Dubai.
• Provide copies of the passports of all the partners in the business.
• A completely clean crypto wallet record is required with no fraudulent transactions or activities.
• Ensure that all your operational expenses and capital resources in the business are visible for at least 6 to 12 months of operation.
• All of your crypto assets need to be incorporated with the “UAE financial free zone” departments that are approved by the government.
• For the final step, you will be required to provide your business plan with the cryptocurrency license in Dubai.

Where to Get the Cryptocurrency License in Dubai

Before starting a cryptocurrency business here, you need to get a cryptocurrency license in UAE. Currently, three of the free trade zones are issuing cryptocurrency licenses in the UAE. They are:

Dubai Multi-Commodities Centre (DMCC):

The DMCC was very open to accepting the addition of cryptocurrency. They provide cryptocurrency licenses for entrepreneurs and businessmen in Dubai. People from all around the world come to DMCC to get their cryptocurrency license in UAE. The DMCC cryptocurrency license in Dubai allows you to perform business activities like providing crypto-related services, store cryptocurrency, trade, management, develop cryptocurrency-related software, etc. You can also provide advisory services and consultation with the cryptocurrency license in Dubai.

DMCC has opened a new crypto center and plans to be the center for all of Dubai’s blockchain-related activities. Dubai is already considered the biggest global leader in technology and the addition of crypto and blockchain only bolstered their position. The DMCC cryptocurrency license plays a crucial part in this achievement.

Dubai Airport Free Zone Authority (DAFZA):

Dubai Airport Free Zone Authority, or DAFZA for short, is another free of like DMCC in Dubai who accepted the addition of crypto. They signed an agreement with the SCA that helped them support entrepreneurs and businessmen who wanted to perform business activities related to crypto. They facilitated businesses within the area with the cryptocurrency license in Dubai.

Companies with the cryptocurrency license provided by the DAFZA can perform business activities with their crypto assets. They can provide services to global investors coming to Dubai from all over the world. Thanks to the strong regulatory framework of the DAFZA, companies within their boundaries can easily perform their business activities. They are moving forward with the aim to increase the acceptance and growth of cryptocurrencies like Bitcoin, Ethereum, Dogecoin, etc.

Abu Dhabi Global Market (ADGM):

The Abu Dhabi Global Market (ADGM) Free Zone allows crypto assets that are regulated by the Financial Services Regulatory Authority (FSRA). It is the regulatory body that governs all crypto-related assets in the UAE.

It is currently the only legal body that has an extensive regulatory framework for cryptocurrency licenses in UAE. FRSA in combination with ADGM has published a guideline about how to use the cryptocurrency license in the UAE for the betterment of businesses around the country.

Source: https://www.companysetup.ae/cryptocurrency-license-in-dubai/