Everything you need to know about getting a crypto license in Dubai
The UAE is an up-and-coming market for developing the crypto industry. Dubai government authorities have appreciated all the benefits of using blockchain and have even begun actively using it in their activities. To open a company here, you must obtain a DMCC crypto license. Today we want to discuss the benefits of such a solution and tell you how it can be done in the shortest possible time.
Main types of crypto permits
To start crypto activities in Dubai, you must obtain a permit from an autonomous economic center. Crypto license in DMCC is issued in two types:
- Cryptocurrency trading (buying and selling crypto assets created based on distributed list technologies). This permit is given to an organization that only trades in cryptocurrencies and is not combined with other services. It excludes activities such as conducting transactions such as an exchange, currency exchange, broker services, processing payments, and a crypto storage service.
- For services under the distributed list method. It gives the right to manage the database and related services using the distributed list method (blockchain). The company is prohibited from trading in virtual currency, providing financing services, intermediary services, or processing payments.
Basic rules for regulating the cryptocurrencies
To date, Emirates has developed regulations for the activities of crypto firms. And for the organization to start operating, the following conditions must be met:
- conduct their activities only within the framework of the law;
- have sufficient capital for 6-12 months;
- take action to comply with the AML program;
- have an accessible database for regulators.
Main steps to get a work permit
To conduct crypto activities, an organization must register an offshore company in the Autonomous Economic Zone, guided by local regulations. Then get approval from the SCA.
The organization must strictly follow the AML legislation and regulate the level of cyber security on data protection.
And it would help if you also concluded an SLA with a contractor firm whose responsibilities will include ensuring the protection of the database.
The steps for obtaining a cryptolicense are as follows:
- obtain registration in the autonomous zone;
- get advice from qualified specialists;
- prepare all documents for registration;
- send an application to the regulatory authority;
- develop a business plan;
- certify the required amount of capital within 6 to 12 months;
- confirm compliance with KYC rules;
- show that the organization complies with the laws about AML;
- confirm the high degree of cyber protection of data;
- pay for the registration of the license.
What requirements must an organization meet?
DMCC and the SCA entered a contractual relationship. This agreement led to the joint development of norms and rules for firms engaged in crypto activities in the free zone. Today, it has a solid foundation for buying, selling, exchanging, and other virtual currency crypto services.
A company that plans to engage in this area must meet the following criteria:
- to document your capital so that it is enough for at least 6 months;
- follow KYC regulations and rules;
- the firm must comply with AML laws;
- for the regulator, information about the data of the company’s employees and its managers should be in the public domain.
In addition, a company must have one of two permits to start cryptocurrency activities in Dubai.
How to start a crypto organization?
Starting such a business begins with submitting an application to the government bodies and fulfilling all licensing requirements, namely:
- give the regulator for consideration of all the documents of the company’s members;
- provide a draft of your business plan;
- determine the location of the main office;
- make payment for related services to obtain a permit.
Taxation
One of the main advantages of Emirates is that the DMCC cryptocurrency is not subject to income and corporate taxes. And this means that there is no tax for firms conducting cryptocurrency-related activities.
And the value-added tax is only 5%. Such taxation makes the Emirates very attractive compared to other countries for a company with a crypto exchange license DMCC.
The legality of Cryptocurrency Business
To date, regulation by the legislation includes:
- federal regulations;
- control in financial centers (DIFC and ADGM);
- law on the principle of cryptocurrency activities.
The main advantages of obtaining a permit in this jurisdiction
Obtaining a permit to work in a free zone has a large number of benefits, among the most important are:
- the fintech area is supported;
- convenient process for company registration;
- there is permission for 100% ownership of the asset without involving a local firm;
- there are no conditions for transactions on transfers of dividends and capital;
- taxes: no corporate and income tax, as well as import and export tax;
- there is no currency control;
- double tax is excluded;
- confidentiality is respected;
- one of the most stable banking systems.
Thanks to all these factors, crypto licenses in DMCC are attractive to investors.
How can our company help you get a work permit?
Obtaining a crypto currency exchange license in this jurisdiction is a rather complicated process since many factors must be considered. You can contact our lawyers, who will help you obtain a work permit.
The list of our services includes:
- consultation;
- assistance with paperwork;
- checking how your organization meets all the requirements of state regulators;
- help in finding competent employees, and much more.
Conclusion
You should constantly expand and enter new markets to develop your business successfully. Among all the countries in the Middle East, the UAE has the most lenient regulation of the crypto industry, and it will not be challenging to obtain a work permit here. Having a permit in this jurisdiction will allow you to attract new investors and clients, which means you will make big profits if you want to get a work permit in the shortest possible time. you can contact the specialists of our company. They will tell you more about the crypto industry regulation, help you collect the necessary documents, and help you ensure that your organization meets all the requirements of government regulators.
FAQ
To get a permit, you must comply with the terms of the government bodies. The state authorities will study your organization’s activities and check all the papers provided, after which they will decide.
You need to apply to the government bodies and fulfill all their requirements to get it. You must prepare all the necessary documents in advance and check how your organization meets the needs of government agencies.
The cost of obtaining a crypto permit depends on various factors. To find out the exact price, you can contact our specialists.