Cryptocurrency has gained immense popularity globally in the past few years. Statistics suggest that over 300+ million people across the world used/owned cryptocurrencies in 2021 and approximately $112 billion are traded daily in cryptocurrency. It is expected that the global blockchain market will be worth over $23.3 billion by the start of 2023.
These statistics point towards the single fact that cryptocurrency is going to increase further in popularity in times to come, thereby adding to the reasons why you should consider investing in a cryptocurrency business. One of the most crypto-friendly jurisdictions in the world is Dubai and in this article, we will discuss how to get a crypto license in Dubai and the requirements for obtaining one.
Start with finalizing a company name
To begin with, you will need to finalize a company name before starting a business in Dubai. This is an important task as it needs to be unique, and not like any other companies in the UAE. You can use an online tool like Namelix to generate some ideas for your company name.
Choose your desired jurisdiction
There are three main jurisdictions in the UAE: Mainland, Free Zone, and Offshore. Each of these jurisdictions has different requirements and benefits. For instance, a Mainland company is required to have a local sponsor who will own 51% of the company.
Free Zone companies are 100% foreign-owned and have more relaxed regulations. Offshore companies are not allowed to conduct business within the UAE and are only suitable for holding investments or managing intellectual property.
Apply for a commercial cryptocurrency license
The crypto license allows businesses to trade, store, and exchange cryptocurrencies. The process for applying for this license is relatively straightforward and can be done online.
To apply for a commercial cryptocurrency license when starting a business in Dubai, you will need to submit the following documents:
Your company’s memorandum and articles of association
A business plan
A KYC/AML compliance policy
Proof of address
Proof of identity
These are just some of the key considerations you need to make when applying for a crypto license in Dubai.
Make sure that you comply with the requirements of the UAE Central Bank and the Securities and Commodities Authority, as well as any other relevant regulatory bodies.
Get in touch with a business setup specialist like Smart Zone to help you with the company formation process.
Prepare all the required documents for your commercial cryptocurrency license application.
Submit your application online and wait for approval.
Once you have received your license, you can start trading cryptocurrencies in Dubai! Note that there are certain restrictions on activities that can be conducted by licensed companies, so make sure to check with the authorities before starting any new business activities.
If you want to learn more about how to get a crypto license in Dubai, or if you need help with the application process, feel free to contact us at Smart Zone. We are here to help!