The best country which provides a Bitcoin center and has gained the attention of almost many businessmen and investors is none other than UAE. The country’s government has taken many steps to implement an open and easy framework which is understandable all over the world and has brought a dynamic approach in regulating these crypto firms in the Emirates.
You would have to receive a crypto license from the DFSA, if you wish to start a crypto business in Dubai. Let us look through the necessary steps, benefits, and requirements to get a crypto license in Dubai.
Dubai Cryptocurrency License Activities
There are three different crypto license activities one can do in Dubai.
1) Establishing Crypto Asset Exchange:
To set up this asset exchange platform it is essential to have a platform to perform the buying and selling of crypto assets, like bitcoin,ethereum and all other digital currencies. To obtain a license to do this activity you will need to have ample amount of capital money, have tight security, and should not do or involve in any money laundering.
2) Having a Crypto Asset Fund:
If you have a crypto asset fund then that must be managed for the investors. If you need a license for this activity then you need experts who have some knowledge about this crypto, and also who has enough knowledge and strategy to work on the DFSA rules and enough money to put in as capital investment to cover up even if there is a loss.
3) Providing Crypto Asset Custody Services:
To receive this service you must have a crypto asset in the name of the investors and clients and help in managing and helping in transferring and keeping the assets safely. If you need a license for this activity then you must make sure that you can provide a robust security feature to enable you to be able to protect and abide by the DFSA rules simultaneously.
The rules and regulations of the DFSA keeps changing from time to time and so the requirements to get the license for crypto currency also changes every now and then. So it is important to have in mind to have a look at the DFSA news and updates and make sure all those DFSA needs are provided in the end.
Requirements for the Cryptocurrency License in Dubai
Let us look at the important or major requirements to get a cryptocurrency license in Dubai:
- Register your company in Dubai
- Have a minimum capital requirement
- Obtain necessary approvals from DMCC and DSO
- Demonstrate compliance with AML and CTF regulations
- Have a physical office in Dubai
- Pay the required fees.
Benefits of the Cryptocurrency License in Dubai, UAE
Let us have a look at a few crucial advantages of obtaining a cryptocurrency license in Dubai, UAE:
- One would enjoy a more reasonable and credible cryptocurrency business activity.
- You can enjoy the benefits that Dubai International Financial Center (DIFC) offers like a tax-free environment, 100 percent foreign ownership, and the ease of access to the UAE’s financial system.
- Your company would gain a high reputation along with investors and customers attracted towards your company.
- Capacity to gain competitive advantage over other companies that do not hold crypto license
- Capacity to develop the business and expand to become large and give space to innovate and grow the blockchain and cryptocurrency markets.
- DFSA provides legal support and guidance to make sure that a company follows the applicable rules and laws.
Steps to Obtain a Cryptocurrency License in Dubai
There are a few steps to get a cryptocurrency license in Dubai:
Choose a Business Activity:
The first step towards this is to check out which crypto activity would be beneficial to carry out if you want to run in Dubai. So you can choose the type of activity you want to set up, a crypto asset exchange or crypto asset fund, or you will provide crypto asset custody service.
Company formation in Dubai:
Setup the business in dubai which looks at all the legal requirements for the activity that you have chosen. Additionally the company must follow the rules and regulations according to dubai.
The minimum capital amount slab setup by the DFSA must be met for the activity that your company has chosen.
Hire a Compliance Officer:
A qualified compliance officer must be hired in the company to make sure and keep checking that the company abides by all the DFSA rules and regulations guidelines.
Develop AML/CFT Procedures:
A robust AML/CFT must be developed to avoid illegal activities, including money laundering and terrorism financing.
Make sure that you have a strong team and that no one tries to hack or perform any cyber threats and misuse.
Submit your Application:
Finally you need to provide the company's documents like the business plan, AML/CFT procedure, cybersecurity measures and compliance policy. If all these are done then you can easily apply for a crypto license with the DFSA.
Now the DFSA will go through all the documents they received and then if needed might request for more documents. It might take a few months to finish the assessment.
If everything is perfect then the DFSA approves all the documents then they would like to issue a cryptocurrency license which would be valid for a year and that it would need to be renewed every year.
Commence Business Activity:
Once the cryptocurrency license is issued, the company can commence its chosen cryptocurrency activity in Dubai.
So if you want to get a cryptocurrency license in Dubai for your company all of it might differ based on your company's situation and the activity you have chosen. In the end it is necessary to make sure that all the steps are followed properly with the help of an expert.
Where Can I Obtain a Cryptocurrency License in Dubai?
It is the DFSA who issues the cryptocurrency license in Dubai and they regulate the Dubai International Financial Centre (DIFC) which is a financial free zone in Dubai. So it is the DFSA who is responsible to get the license for cryptocurrency in Dubai.
There are certain fixed assessments that the DFSA has set up before issuing the license to evaluate the company model, structure, finances, cyber security, AML/CFT norms and the compliance process. This process of assessment would take several days or months to be completed and the DFSA inbetweens these days can request for more documents or information if needed.
To receive this crypto license in Dubai the businesses can contact the DFSA directly or they can get help from consultancy agencies who are well versed in these licensing procedures and can assist you to have a seamless experience.
Also make sure that the rules and regulations by the DFSA can keep changing every now and then so there should be someone to keep in mind the news and information up to date which is needed to get that crypto license.
How can Business Setup Worldwide help you?
Business Setup Worldwide focuses majorly to help people with company formation and on obtaining licenses and getting approvals from several authorities for their clients at a hassle free way for anyone anywhere in the world. They also make sure that the business runs smoothly without any hindrance for all the clients.
We provide services like opening a bank account, company formation, financial services and so on. Our main aim is customer satisfaction. To know more about cryptocurrency setup in Dubai or anywhere you can contact us, we would be more than happy to help