WHAT YOU NEED TO KNOW ABOUT CRYPTO LICENSES IN DUBAI

In this article, we will have a look at the UAE crypto ecosystem, detailing the necessary licenses for opening a crypto business, benefits, and steps to obtain a commercial license in Dubai.

The United Arab Emirates (UAE) is quickly becoming one of the world’s most
cryptocurrency-friendly environments. The Dubai government has taken the lead in
promoting local crypto evolution and regulation as part of its efforts to create a distinct
zone for crypto assets. The Dubai World Trade Centre (DWTC), the UAE’s largest and
most important government-owned event and exhibition site, would become a
comprehensive industry and cryptocurrency regulator. DWTC will also establish a
separate zone for virtual assets such as operators, exchanges, products, and digital
assets. While the Central Bank of the UAE does not accept or acknowledge
cryptocurrencies, and the Dirham remains the only legal currency, free zones like Dubai
and Abu Dhabi have implemented innovative frameworks that encourage crypto
entrepreneurs while laying out consumer protection safeguards.

This move is part of Dubai’s goal to build new economic sectors as an emirate of the
United Arab Emirates Federation. The Dubai Media Office stated on Monday, December
20, 2021, that efforts are being undertaken to attract new enterprises, including
cryptocurrencies. As part of this initiative, the DWTC intends to create a comprehensive
ecosystem in conjunction with the private sector in order to create an appealing
business climate. The plan also aims to implement stringent procedures and regulations
to safeguard investors, prevent terrorism financing, implement anti-money laundering
measures, track cross-border transactions, and assure compliance.

To conduct legitimate business in Dubai or any other state of the UAE, a trade license is
required by the corporation. Companies looking to open a cryptocurrency-based
business in the UAE will need a commercial license since cryptocurrency falls under that
category. For further understanding of this, commercial licenses are needed for
commercial processes that involve trading. A commercial license is required since the
cryptocurrency business is closely tied to the trading of Bitcoin and other currencies.
Companies can begin business operations with the assistance of this crypto permission.

Crypto-commodity proprietary trading
Crypto-commodities developed on distributed ledger technology applications are
bought and sold (Proprietary Trading). Exchanges, brokerage services, financial
services, banking services, payment processing services, and storage services are not
included in this activity.
Services for Distributed Ledger Technology.

Based on distributed ledger technologies like Blockchain, this industry offers database
management solutions and related services. These companies cannot deal in or establish
an exchange for currencies or cryptocurrencies/commodities, or provide services
related to the financial activity such as brokerage or payment processing.

There are two ways to obtain a commercial license for the purpose of conducting
cryptocurrency-related business.

• Online:
  The registration process can be completed online because license papers must be
  completed and submitted online.
  
• Offline:
  Several business agencies have been established in Dubai to assist you with the
  paperwork. There, you can submit your licensing documentation and start the
  application process.

• Quick Registration
• 100% ownership
• There is no share capital
• Co-working space is accessible with no corporate or income tax.
• Participate in the Crypto Centre (CV Labs)

As Gurcan Partners International Law Firm, we provide services with our office in five EU and five non-EU countries. Please find our articles below.

• Residency in the UAE
• Company Incorporation in the United Arab Emirates
• UAE Tax Residency

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