What is a Cryptocurrency
Cryptocurrency is nothing but digital currency. As complex as it may sound, it actually is quite manageable once you get the hold of it. The usual currency we all have heard about is made of either paper note or coins, whereas cryptocurrency is a whole different criteria.
Many of the business holders in today’s date are shifting towards cryptocurrency and crypto business, which is undoubtedly the right as crypto business is a billionaire dollar industry all around the world. All the Bitcoins in the world are roughly worth 1.03 Trillion.
What is a Cryptocurrency License in Dubai?
Dubai holds immense potential and offers great opportunities to crypto investors looking to start a company in the region. It is a global hub for all sizes of crypto businesses. The UAE government ensures an efficient working environment for crypto-related activities.
The UAE offers a cryptocurrency license under the commercial licencing category. This license will enable you to trade in any cryptocurrency-related products and carry out other DLT-related operations. Therefore, this might be your gateway to Dubai’s bitcoin market.
Why Should You Get a Cryptocurrency License in Dubai?
Getting a crypto business license in UAE can be a bit of a struggle to get but once you get one, it opens many doors to worldwide businesses.
UAE has embraced the endless possibilities of crypto, blockchain technology & metaverse technology for enterprises. Country also aims to broaden its status as one of the leading economies to encourage more crypto businesses.
Entrepreneurs are on the lookout for places where they can have numerous benefits aligned with strategic government support. Dubai also offers everything that is required to be the top destination for crypto business. Furthermore, because of its zero-tax policy, first-rate infrastructure, and 100% ownership of the firms, Dubai has promising future prospects for the cryptocurrency industry.
Obtaining a crypto license in Dubai can be very beneficial for global investors. Moreover, the country’s friendly laws attract several crypto investors looking to start cryptocurrency businesses in the UAE. Since the cryptocurrency market is flourishing at a very fast pace in the country, this could be the best time to invest in the UAE.
When was cryptocurrency legalized in the UAE ?
The UAE is set to become the global hub for cryptocurrencies and many experts believe that the country is promoting and adopting virtual currencies. The legalization of cryptocurrency came into effect on Match 11, 2022. The announcement was made by Dubai’s ruler, Sheikh Mohammad Bin Rashid who said that adopting these laws will establish UAE’s position in the sector.
What is Blockchain?
Blockchain is a digital ledger of transactions that is duplicated and distributed across the blockchain’s entire network of computer systems. In today’s world business runs on digital information, It’s always better to receive the faster and more accurate information. One can track orders, production, accounts, payments and much more using blockchain technology.
It works on Distributed Ledger Technology (DLT) which is a decentralized database that is managed by multiple participants. One of the major benefits of blockchain is the security framework that it offers. This is because it uses a method of storing data in such a way that it is difficult or impossible to alter or hack.
Get a Cryptocurrency Business License in Dubai
Choose your company name
The first step is to decide on a company name for your business. Try avoiding offensive names or already existing names. Keep your company name that is according to the rules defined by the government authorities.
Select the preferred jurisdiction
The next step is choosing the jurisdiction to start a cryptocurrency business in Dubai. You can choose between the free zone or the mainland. Both have their own set of rules and benefits.
Apply for a cryptocurrency license
After you have selected the company name and the jurisdiction, you can apply for the cryptocurrency license. You can do this by sending the application to the concerned authority, or it is always better to work with an experienced business setup consultant.
Comply with all the regulations
For cryptocurrency business license in UAE, you must go through all your documents, and make sure that you follow all the anti-money laundering rules in the Emirates.
How to Get a Cryptocurrency License in Dubai?
Download the application for a cryptocurrency license and complete it with the necessary details.
Submit the application to the appropriate jurisdiction where you intend to establish your business.
Pay the processing fee to the authorities to finish the payment process.
Once all the necessary steps have been taken, the relevant authority will review your application and issue the cryptocurrency license for you.
Overview of VARA
Virtual Assets Regulatory Authority (VARA), Dubai is in charge of regulating, supervising, and monitoring virtual asset and NFT issuance, offering, and relevant disclosure processes. Any person or legal entity that provides virtual asset services must have a VARA license.
VARA, Dubai is the first government authority to embrace virtual assets in such a comprehensive way. It is developing a strong economic sector that will benefit the nation’s economy and attract talent from all over the world.
What is the Procedure to Get a Cryptocurrency License in UAE?
You can select from any of the following authorities to get your cryptocurrency license
Steps that are mandatory while submitting an application for a crypto license in UAE :
What are the Requirements to Acquire a Cryptocurrency License in Dubai?
Copies of passports of all the shareholders of the company
Obtain a trading license from DMCC or DED
A medical proof that ensures you are physically fit
A complete business plan and capital resources for 6 to 12 months of operation should be evident
The company should have complete transparency in any kind of anti-money laundering activities.
A clean crypto wallet record with no fraud transactions or related activities
Why Radiantbiz is the Best Option for Cryptocurrency License in UAE?
This license falls under the commercial sector. Crypto license is mandatory for any commercial trading related to crypto business. Trading of any crypto currencies, commodities or any activity related to distributed ledger technology services will come under cryptocurrency business and commerce in the UAE. Hence, this cryptocurrency license in Dubai allows you to conduct all other key cryptocurrency related business in Dubai.
However, operating and acquiring a crypto license in UAE may be a daunting task.This is where the best business setup consultant in Dubai come into the picture. Radiantbiz has a deep grasp of the cryptocurrency market, enabling us to efficiently meet your demands and walk you through the process of obtaining a cryptocurrency license in UAE and launching a crypto business in Dubai, UAE.
Frequently Asked QuestionsMost Popular Question asked on Cryptocurrency license in UAE
The UAE levies no income taxes for cryptocurrency operations, which attracts investors from all over the world. No tax policy on cryptocurrency earnings if you use it for trade or generate it as a salary.
When it comes to creating a new cryptocurrency firm in the UAE, the process could take upto 1 week.
Undoubtedly, the future of having a cryptocurrency license in Dubai looks bright, with crypto becoming increasingly popular and diverse. The UAE is now one of the top choices in the world for crypto initiatives. As of now, the UAE has a ‘no tax system’ for any cryptocurrency ventures. If you use cryptocurrencies for trade or receive them as a paycheck, you will pay no tax on them in Dubai. Here are some of the major benefits of setting up a cryptocurrency business in Dubai-
● There is no need to look out for a local partner as any local company has the permit to a 100% of foreign ownership.
● Another benefit is the benevolent taxation criteria in Dubai, where no corporate income tax is levied for the next 50 years of your business operation.
● The Next major benefit is that there lies no limit for transferring a company’s income and capital.
● There are no constraints on the currencies, along with zero taxes on import and re-export.
● Also, there are no restrictions on foreign employees who are a part of the company.
It’s tough to give a precise cost estimate for a cryptocurrency license in Dubai. The entire amount of capital needed will depends on the type of your business, where you choose to set up shop, and the size of your operation. Talking to our experts at Radiantbiz can help you get an exact assessment of the costs involved or you can visit our cost calculator for business setup in Dubai.
The cryptocurrency license falls under the “commercial license” category in Dubai.
How is it beneficial?
A cryptocurrency license in Dubai has many benefits –
● You will stand out from the crowd if you obtain a cryptocurrency license. Despite its popularity in the UAE, just a few firms use cryptocurrency for transactions.
● It is extremely cost-effective when compared to other UAE trade permits. It has a far higher potential for profit than other licenses.
● Cryptocurrencies are extremely secure because they work on the concept of blockchain technology.