The introduction of “Blockchain Strategy 2021” by the UAE changed a lot of things for new-age entrepreneurs, foreign investors, and new businessmen. They got a new way to increase their wealth and outshine others. Because of this, there are a large number of crypto businesses operating in the UAE today and it’s expected to increase every year significantly. 

UAE is a business hub, especially Dubai. So, if you are planning to enter Dubai as a business owner, set up a crypto business. 

Crypto Business Set up in Dubai

Cryptocurrency in Dubai was legalized in November 2020. But, its sale within the Emirates is highly regulated. Businesses offering crypto services in any form must be licensed by the Security and Commodity Authority (SCA). 

One of the major regulations is that the crypto business can either be done with a mainland corporation or within a free zone. A company cannot become a part of the cryptocurrency market in Dubai from abroad. 

The best part is that Dubai has announced the issue of its digital currency called emCASH, which will be used for the government as well as non-government services. Also, the new currency will resolve the problems associated with other digital currencies. 

Dubai has a great scope for crypto business owners. So, it’s the right time to set up a crypto business in Dubai. 

What should you do?

Choose the name of a company

The name you choose for your crypto business should not include any blasphemous phrases, abbreviated terms, or names of well-known organizations. The name should be simple, clear, catchy, and memorable. To make an individual’s name your business trademark, use the real name and not the nickname. 

Decide the jurisdiction

As already discussed, a crypto business can only be done on the mainland or free zone jurisdiction. Both have certain advantages and disadvantages. Generally, entrepreneurs prefer free zone jurisdiction because it gives tax savings and foreign ownership benefits. Other than this, free zone jurisdiction has no currency constraints and entrepreneurs can take benefit from gain and income repatriation. 

On the other hand, the mainland offers effortless access to all the states in the Emirates. But, it requires a local sponsor for business setup. 

Register and apply for a cryptocurrency license

The crypto business is highly regulated. So, it’s not possible to run this business without a license. For a cryptocurrency license, you should register and send the application directly to the respective governing department. Presently, the three free zones providing cryptocurrency licenses throughout the country are Abu Dhabi Global Market (ADGM), Dubai Airport Free Zone (DAFZA), and Dubai Multi-Commodities Center (DMCC). 

Eligibility to get a cryptocurrency license 

• The purchased crypto assets should be incorporated with the United Arab Emirates Financial Free Zone. 

• The applicant’s criminal record should be clean.
• The information within a crypto wallet should be secure. 
• The business members should have valid passports.  

Follow all the compliance regulations

As a cryptocurrency business is regulated and supervised like any other financial trading in Dubai, applying for a license is not enough. You should abide by all the Anti-money laundering (AML) regulations and submit accounts for audits regularly. 

Conclusion

As per the current scenario and prospects, the Crypto business is profitable in Dubai. But, the process to apply for a business license and set up a crypto business is not as easy as it seems. So, contact Emirazone. 

As we understand the industry well, we will meet your requirements efficiently and help you throughout the crypto business setup in Dubai. We will help you set up a stable business as well as guide you to manage and grow it.