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What You Need To Know About Crypto Licenses In Dubai

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 UAE Crpyto Ecosystem

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, December20, 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.

Understanding The UAE Cryptocurrency License

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.

Licenses

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.

Obtaining A Commercial License In Dubai For a Crypto Business

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.

The Benefits Of Starting A Crypto Business In a Free Zone In The UAE

• 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)