DubaiHow To Get a Dubai Cryptocurrency License in Dubai

https://x5v6w2n8.rocketcdn.me/wp-content/uploads/2023/05/pexels-shukhrat-umarov-1534411.jpg
  • The Dubai cryptocurrency license is a legal framework established by the Dubai Multi Commodities Centre (DMCC) and the Dubai Financial Services Authority (DFSA) to regulate cryptocurrency businesses in Dubai. The license was introduced in 2020, following the growing interest in cryptocurrencies and blockchain technology in the region. The cryptocurrency license is designed to ensure that cryptocurrency businesses in Dubai operate in compliance with regulatory requirements and to protect investors from fraudulent activities. The license is required for businesses engaged in activities related to cryptocurrency, including issuance, trading, and custody.
  • To obtain the Dubai cryptocurrency license, businesses must meet a set of regulatory requirements, including complying with anti-money laundering (AML) and know-your-customer (KYC) regulations, establishing adequate cybersecurity measures, and maintaining transparent financial reporting. The license is available to businesses established in the Dubai Multi Commodities Centre (DMCC) Free Zone, which is a hub for trading and financial services in the region.
  • The Dubai cryptocurrency license is an important development for the cryptocurrency industry in the region, providing a regulatory framework to support the growth of this emerging market. It is expected to increase investor confidence in cryptocurrency businesses and provide a level of assurance that these businesses are operating in a transparent and secure manner.

Why should you choose Dubai for obtaining a cryptocurrency license?

  • Dubai is becoming an increasingly attractive location for cryptocurrency businesses for several reasons:
  • Supportive regulatory environment: The Dubai government has been proactive in developing a supportive regulatory environment for cryptocurrency businesses. The Dubai Multi Commodities Centre (DMCC) has launched a regulatory framework for cryptocurrencies, and the Dubai Financial Services Authority (DFSA) has issued guidelines for cryptocurrency issuers and exchanges.
  • Strategic location: Dubai is strategically located at the crossroads of Europe, Asia, and Africa, making it an ideal location for cryptocurrency businesses looking to expand into new markets.
  • Tax-free environment: Dubai offers a tax-free environment for businesses, with no corporate or personal income taxes.
  • Business-friendly policies: Dubai has a business-friendly environment, with streamlined registration and licensing procedures, and a supportive ecosystem of incubators, accelerators, and funding programs for startups.
  • A growing interest in cryptocurrency: Dubai is a hub for innovation and technology, and there is growing interested in cryptocurrency among businesses and investors in the region.
  • Strong infrastructure: Dubai has a modern and well-developed infrastructure, including world-class telecommunications and transportation systems, making it an attractive location for businesses looking to establish a global presence.

Steps to get a Dubai Cryptocurrency License in Dubai

  • Tetra Consultants’ team of licensing experts has more than a decade of experience in advising our international clients with securing a Dubai cryptocurrency license. Our comprehensive service package includes everything you need to operate your cryptocurrency business in the nation. Our team of experts will provide full support throughout the engagement, including the process to register company in Dubai, corporate bank account opening, drafting legal documents and license application, and securing the cryptocurrency license from a respective free-zone authority like Dubai Financial Services Authority (DFSA) or with the Dubai Department of Economic Development (DED). 
  • Our team of licensing experts advises you to read through this article to understand the steps involved in the process of obtaining a Dubai cryptocurrency license: 
  • Step 1: Establish a legal entity: To apply for a cryptocurrency license in Dubai, you will need to establish a legal entity in the Dubai Multi Commodities Centre (DMCC) Free Zone, which is a hub for trading and financial services in the region. You will need to provide the DMCC with details about your business activities and financial projections.
  • However, before moving forward with the registration of the entity, Tetra Consultants’ team of experts will first evaluate your business needs and goals on the basis of which we will recommend the best-suited business entity type for your cryptocurrency business in Dubai. 
  • Tetra Consultants team will help you with the pre-registration requirements to choose a trading name for your cryptocurrency business in Dubai. First, we will help you choose your company name. When making this decision, we will make sure that you must abide by a strict set of naming conventions
  • Tetra Consultants will also check that your chosen name is available before registering it for you with the respective free-zone authority. Once confirmed we will register the same with the respective authority.
  • Step 2: Meeting minimum regulatory requirements: Prior to the registration of an entity in Dubai, Tetra Consultants team will ensure that you fulfill the minimum regulatory requirements for the registration of an entity and apply for a cryptocurrency license in Dubai. Accordingly, the cryptocurrency company at this stage is required to have the minimum share capital required for forming a Dubai multi commodities center (DMCC) company would be AED 50,000/- (AED 10,000 per shareholder) for Specific Trading or Service License and AED 1,000,000 for General Trading License, a registered address in Estonia, and a local representative or agent
  • Further, The DMCC Company needs to appoint a minimum of one Director, a Manager, a Secretary, and a Negotiator. The Director, Manager, Secretary, and Negotiator can be the same person. The manager will be required to be on the residence visa of the company under the sponsorship of the Free Zone Authority. 
  • With the above in place, you can proceed to register company in Dubai. Tetra Consultants’ legal team will prepare the required corporate documents including Articles of Association entailing the necessary clauses and information of your new establishment. 
  • Step 3: Opening of corporate bank account: Simultaneously, Tetra Consultants will proceed with the process of corporate bank account opening with a reputable financial institution. 
  • The minimum paid-up capital required to secure the license will be deposited into this bank account.
  • Step 4: Preparation of license application and other documents: Simultaneously, you are required to work on the preparation and drafting of the license application and other supporting documents. Tetra Consultants’ team of legal experts is proficient in drafting necessary documents for cryptocurrency business which includes AML/CFT policies, insurance policies, risk assessment and procedural rules preparation, and drawing up a detailed business plan. 
  • Our team will ensure to send the prototypes of the documents drafted and customize with the modifications required if any after your review on the same. 
  • Step 5: Apply for the license: Once you have established a legal entity in the DMCC Free Zone, you can apply for the Dubai cryptocurrency license through the Dubai Financial Services Authority (DFSA). You will need to provide detailed information about your business activities, compliance policies, and cybersecurity measures.
  • There are fees associated with obtaining a Dubai cryptocurrency license, which vary depending on the type of license and the size of the business
  • Once you have completed the application process and met all the regulatory requirements, you will receive the Dubai cryptocurrency license from the Dubai Financial Services Authority (DFSA).

Conclusion

  • Even though the steps on how to get a cryptocurrency license in Dubai may seem tedious, rest assured that it is a one-off process since the Dubai cryptocurrency exchange license will not expire
  • Tetra Consultants provides our clients with an easy, hassle-free way to obtain a cryptocurrency license in Dubai. Our team of experts will guide you through the full application process so that you can start operating your crypto business as soon as possible. Tetra Consultants’ team of licensing experts is proficient with securing various offshore financial licenses depending on the entity’s long-term needs and goals. 
  • Contact us now for a free, non-obligatory consultation and we will revert within 24 hours.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow us on

Address

22 Sin Ming Lane #06-76 Midview City, Singapore 573969

©2010-2024 Tetra Global Consultants. All rights reserved.