How to get a Cryptocurrency License in Dubai?
United Arab Emirates is becoming a popular bitcoin hub around the world. In the UAE, cryptocurrency companies are on the increase, and more businesses are considering adopting the new technology.
In the future years, the cryptocurrency industry in the Middle East is likely to grow significantly. The market capitalization of Crypto Currency in the UAE was estimated to be at AED 265 billion. With the rise in Bitcoin transactions around the world and new Cryptocurrencies joining the market, the Cryptocurrency market is in a growth period.
Cryptocurrencies such as Bitcoin, Dogecoin, Etherum, Tether, Polkadot, and others are gaining popularity in the UAE. There are other online Cryptocurrency trading exchanges that allow individuals to trade Bitcoin. By writing this blog Dhanguard will assist you to get a cryptocurrency license in UAE.
What is a Cryptocurrency License and How does it Work?
The investor must obtain a commercial license in order to legalise the bitcoin business in the UAE. The Crypto license in UAE will control all crypto trading, monitoring, and buying, among other things.
Following Free Trade Zones in the UAE now provide cryptocurrency licenses
- DAFZA – Dubai Airport Free Zone Authority
- ADGM – Abu Dhabi Global Market
- Sharjah Research Technology & Innovation
- DMCC – Dubai Multi-Commodities Centre
Operation of Crypto Exchanges in UAE
There are a number of regulations and compliance standards that must be met in order to run a crypto exchange in the United Arab Emirates. In most situations, the Securities and Commodities Authority, ADGM, and the respective Free Zone authorities scrutinize the application for a crypto exchange.
It's a novel thing to open and run a cryptocurrency exchange in Dubai. For crypto licensing companies and investors in the UAE, it is expected to be a game-changer.
Taxation of Cryptocurrency Trading Companies
Companies that trade cryptocurrency are subject to taxation. In the United Arab Emirates, there is no personal or company income tax. As a result, there is no tax on crypto trading firms in Dubai. The UAE has an extremely low rate of Value Added Tax (5 %)
Entrepreneurs can simply establish a tax-free crypto trading company in the UAE. Regular cryptocurrency transactions in the UAE, on the other hand, will be subject to a 5% VAT.
Procedures to Follow for Obtaining a Crypto Currency License in Dubai
To obtain a Cryptocurrency license in Dubai, you must take the following steps
- Fill out the cryptocurrency license application form and send it to the appropriate Free Zone.
- Submit the shareholders' needed documentation, including a copy of their passport and pictures.
- To manage the company successfully, you'll need a short business plan and some share money.
- Choose an appropriate office space depending on your needs and draught a rental agreement.
- Make the needed Crypto License and Office Rent payments.
- The company will be awarded a Crypto trading license once the respective Free Zone authorities have approved it. After that, the investor can apply for a UAE residency visa and open a corporate bank account in the UAE.
Governing Bodies for Crypto Licenses in the UAE
The United Arab Emirates wants to create an integrated environment for cryptocurrency trading and block chain technology, as well as react to the latest technological trends that are driving economic growth. The Securities and Commodities Authority (SCA), in collaboration with the Dubai Multi Commodities Centre (DMCC), has developed a regulatory framework for enterprises involved in cryptocurrency trading, listing, and management. Similar criteria will be followed by the Dubai Airport Free Zone, which will register bitcoin trading permits for investors.
Crypto License Guidelines from Abu Dhabi Global Market Free Zone
The Financial Services Regulatory Authority and the Abu Dhabi Global Market Free Zone (ADGM) both provide guidelines on cryptocurrency trading and company licenses. The Crypto Assets Activities Regulations in the ADGM are the most comprehensive regulatory framework available in the UAE, and there is presently no other law covering cryptocurrencies in the UAE. Due to the growing popularity of cryptocurrency trading, the UAE government is planning to implement a comprehensive regulatory framework for cryptocurrency license issuance and trading.
DMCC Launches New Crypto Centre in Dubai
DMCC has developed a Crypto Centre, a comprehensive environment for crypto trading and blockchain firms. Its goal is to serve as a centre for the development and application of cryptocurrency and blockchain technologies. The centre will help businesses of all sizes create blockchain and crypto-related solutions. DMCC Crypto Center is the UAE's crypto and blockchain hub.
The new facility will offer crypto entrepreneurs and SMEs co-working spaces to test and develop their blockchain and crypto solutions.CV labs, the company behind the Swiss government-backed Crypto Valley, also runs a crypto advising business at the Centre. In addition, a number of incubators and accelerator programmes have been set up for start-ups seeking investment for their crypto initiatives.
Dubai's future blockchain projects will be centered on the DMCC's new Crypto Centre. Dubai has established itself as a global hub for blockchain technology and related applications. The blockchain and crypto ecosystem in the UAE is reaching new heights with the installation of the DMCC Crypto Center.
Conclusion
Dhanguard Consultancy has put together a team of highly qualified people that specialize in cutting-edge technology and cryptocurrency. We offer economical services while also assisting entrepreneurs and forming long-term business relationships with them. For more details connect with Dhanguard Experts.
