There’s no better place in the world than Dubai to start a blockchain or cryptocurrency company. For entrepreneurs seeking to dive into the world of blockchain and cryptocurrency, Dubai is a fast-growing hub of technology and innovation – particularly in the fintech industry.
There is tremendous hype surrounding decentralized virtual currencies based on blockchain technology. Different cryptocurrencies and cryptocurrency exchange activities have boomed since Bitcoin’s launch and meteoric rise in value from 2008. Likewise, selling virtual currency and other virtual currency business activities has increased exponentially as more and more countries and companies around the world adopt virtual currencies and cryptocurrency operations.
Starting a blockchain technology company or cryptocurrency in Dubai is actually easier than you’d think. This is thanks to the United Arab Emirates’ progressive regulations and state laws for financial services.
In this article, we’ll show you the benefits of opening a blockchain or cryptocurrency business in Dubai, the steps and costs to do so, and how Trade License Zone can help you.
Benefits of opening a cryptocurrency business in Dubai, UAE
Dubai is a fantastic place for entrepreneurs and investors to live and work. The population comprises 90% foreign nationals, boasts a highly skilled workforce, offers zero percent taxation for businesses and personal incomes, zero currency restrictions, and is home to a thriving fintech industry.
While the blockchain technology and cryptocurrency industry are fairly new to public discourse, it is a rapidly developing industry. In Dubai, it is supported by the new Regulatory Framework for Stored Values and Electronic Payment Services. The Dubai Central Bank and Dubai Supreme Legislation Committee support and advocate for the wider adoption of cryptocurrencies in their business activities and companies throughout the United Arab Emirates.
The benefits of opening a cryptocurrency business in Dubai are many. If you’re looking to start your own cryptocurrency or blockchain business, now is the right time.
Partnering with a company setup specialist such as Trade License Zone will help you start a blockchain or cryptocurrency business in Dubai. We’ll provide you with expert advice and guide you on the process of getting started as soon as possible.
Steps to open a cryptocurrency business in Dubai, UAE
If you’re wondering how to start a blockchain or cryptocurrency company in Dubai, we’ve outlined these 5 steps for you to follow.
Step #1: Partner with Trade License Zone
Partnering with local business formation experts such as Trade License Zone is the first step in opening a blockchain or cryptocurrency company in Dubai. The UAE created innovative trade zones to better stimulate and support industries with specific regulations. By choosing the right legal structure and business model, you can apply for a relevant trade license in an applicable trade zone to take full advantage of the benefits and local government support.
Our team at Trade License Zone will manage all aspects of your trade license application, company registration, and setup process to guide you on the various governmental and municipal trade regulations for a blockchain or cryptocurrency company in Dubai.
Step #2: Setting up your company structure
As we’ve mentioned, choosing the right trade zone for your business is vitally important. You need to decide whether to set up your company as a Mainland Company or as a Free Zone Company.
A Mainland Company allows you to trade as a cryptocurrency or blockchain company throughout the United Arab Emirates, but a UAE national will need to own 51% of the company’s shares.
Free Zone Companies enable you to own 100% of the business, have zero currency restrictions, and you can repatriate your profits without additional costs. However, you need to partner with a local service agent in order to trade directly in the United Arab Emirates.
Each type of trade zone has its advantages, and we at Trade License Zone can help you to best decide which trade zone is most applicable to your business activity.
Step #3: Choosing a company name
Your business and business name must be registered with the UAE’s Registry Office. The business name must adhere to the UAE’s strict naming regulations. Business names cannot include any offensive or blasphemous language, nor any references to Allah or Islam. If you wish to include your name in your company name, you must use it in full rather than just your surname or initials. We’ll also check that your chosen name is available to be registered.
Cryptocurrency or blockchain companies in Dubai must receive a p-approval from the UAE’s Securities and Exchange Commission Authority (SCA), as well as adhere to strict Anti-Money Laundering (ALM) and Counter-Terrorism Financing Laws.
The business must also be certified ISO 9001:2015 and ISO 27001:2013. Cybersecurity and data protection regulations in Dubai are strict in managing customer information, cryptocurrency exchanges, and the company must detail its IT policies about local services and cloud servers as part of its disaster recovery and backup procedures.
The company must maintain a comprehensive Service Level Agreement (LSA) with all contracting companies and employees who perform maintenance, repair, and other operations on the systems to protect data security.
Step #5: Applying for a trade license
Only once you’ve selected your trade zone can you begin the process of applying for your cryptocurrency license from Dubai’s Department of Economic Development (DED).
While the UAE authorities have streamlined this process, it remains a complex process. Partnering with Trade License Zone will help you throughout the process so that you can begin trading as soon as possible.
As with all industries, cryptocurrency exchange services and other trading are regulated in the same ways as other financial services. Your cryptocurrency license will ensure you’re trading legally as well as complying with anti-money laundering laws (AML) to meet Dubai’s strict regulations.
These are the documents to get a cryptocurrency license in Dubai:
- Copies of the passport of all partners and shareholders of the business
- A clean cryptocurrency wallet record with zero fraudulent transactions or exchanges
- Your business plan
- A completed application form
Contact Trade License Zone to make use of their highly experienced specialists to guide you on every step of the process in applying for your trade license. It is as easy as telling us a little about your business and sending us the required documents to get your application process started.
Cost of a cryptocurrency license in Dubai, UAE
The cost of a cryptocurrency license in Dubai is difficult to outline as costs vary greatly from business to business. Setting up your cryptocurrency or blockchain company in Dubai depends on the exact nature of your business activities, your company structure, and the size of your business.
By contacting Trade License Zone, we can generate an accurate estimate of the costs involved in getting a cryptocurrency license.
Working with Trade License Zone
Business setup in the UAE is straightforward, but it remains a complex process – even if you think you know what you’re doing. When you partner with Trade License Zone, we will save you from unnecessary delays or rejections and make the entire process a streamlined one.
When you work with the specialists at Trade License Zone, all you need to provide is some basic documentation and a little information about the nature of your business. Then, sit back and let the experts take care of the rest – managing your trade license and visa applications, communicating with all relevant departments and authorities, and reporting back when you’re ready to trade. It really is that simple.