A Guide To Cryptocurrency Business License in UAE – Quickbiz Business Setup Services

A Guide To Cryptocurrency Business License in UAE

26 May 2021

Cryptocurrency is trending and the number of investors dealing with the cryptocurrency business has skyrocketed. The development of cryptocurrency enterprises has totally transformed the corporate sector, prompting businesses to set up companies in Dubai, United Arab Emirates. That being said, the DMCC Digital Centre in Dubai now offers customized licenses for businesses working with crypto assets.

What is a Cryptocurrency License?

Any businessman looking to carry out legal business in Dubai or any other UAE state needs a trade license. While the cryptocurrency license is classified as a commercial license which is opted for commercial operations including the trading process.

Trading Bitcoins and other cryptocurrencies are inextricably related to the cryptocurrency sector. So, to launch a Cryptocurrency-related business in Dubai, an investor must first create a company business center and then secure a Cryptocurrency License to conduct the required business operations. This cryptocurrency license permits you to engage in all other key cryptocurrency operations in Dubai.

Companies can trade and manage their crypto assets in the UAE with a crypto license from the Dubai Multi-Commodities Center, Dubai Airport Free Zone, and Sharjah Research Technology Innovation Park. With more Free Zones permitting enterprises to engage in crypto trading, crypto-asset handling, bitcoin trading, and similar activities, the Crypto License is becoming more widespread in the UAE.

How to Get Cryptocurrency License in UAE?

Investors must just register one of the types of businesses accessible and apply for one of the business licenses under which it may function, therefore there are no unique prerequisites for registering a cryptocurrency firm in Dubai.

To register your business, there are two ways to submit papers:

  1. Online: Go to registered websites and complete paperwork
  2. Offline: Get help from Business setup agencies to submit an application

However, if you want to successfully get a cryptocurrency license in Dubai, you must follow the steps below without fail.

  • Submit the license form to registered corporates of the UAE
  • Provide documentation related to your company’s name and shareholders.
  • Submit your business official document to local DMCC Free Zone landowners.
  • Fill in the application form without missing essential documents.
  • Pay the application fee following receipt of payment.
  • Obtain your cryptocurrency license once approved.

What To Consider When Applying For Cryptocurrency Business License in Dubai? 

Ensuring your application for a cryptocurrency business license does not get rejected, there are few things you must think of.

  • Cryptocurrencies must be registered with the UAE’s financial free zone departments.
  • You must be capable of showing your capital resources and operating expenditures for at least 6-12 months.
  • You must not be involved in any deceptive activity.
  • Your data must be kept safe in a crypto wallet.

What Will Happen If I Don’t Acquire UAE Cryptocurrency License?

In no case, you are advised to conduct cryptocurrency business without a license as you may have to face the following repercussions:

  • Your company may be placed on a blacklist
  • Foreign trading operations can be permanently blocked
  • UAE Government may revoke visas and impose travel restrictions
  • Shareholders or owners can be expelled from Dubai
  • No local sponsors will deal with your business and your business will be shut down
  • A large penalty will be imposed, and the company’s assets will be seized

Sounds scary? Not to worry, QuickBiz can help! Cryptocurrency, like other investments, comes with its own set of hazards. To be safe, look into Cryptocurrency exchanges, which enable you to purchase and sell virtual currencies. Fraudulent acts are not tolerated in the UAE.

So, if you want to start a cryptocurrency investing firm in Dubai, we can provide you with all of the information you need. At QuickBiz, we are a group of specialists based in Dubai, United Arab Emirates. We provide low-cost services to entrepreneurs who want to launch a business in Dubai offering legal translation, trademark registration, VISA, and office space in Dubai, in addition to license services. We provide our clients with up-to-date information on all license procedures and how to work with government agencies.

Requirements For Getting A Cryptocurrency License In Dubai, UAE

To meet regulatory requirements, the UAE government has established specific qualifying conditions or eligibility criteria that need to be met before applying for a cryptocurrency license in the UAE:

  • Get a commercial license form from DMCC (Dubai Multi Commodity Center).
  • Provide copies of all your business partners’ passports.
  • There must be no fraudulent transactions or activity on your crypto wallet record. In short, you should have a clean crypto record.
  • A residential proof is required for all the shareholders. (Utility bills or any bill with the address on. It should be less than three months old.)
  • All of your cryptocurrency assets must be transferred to the company once your company is established.
  • In order to complete the process, you must submit a questionnaire for approval. Quick Biz will provide this. 

Procedure For Obtaining The Cryptocurrency License In Dubai, UAE

In comparison to other types of business licenses available in Dubai, acquiring a cryptocurrency license is rather simple. 

If the process appears difficult or you have more pressing business concerns, you can always seek assistance from one of our skilled business advisers. They will get the cryptocurrency license on your account.

However, if you want to get an understanding of the license registration process, following is the procedure to get a cryptocurrency license in the UAE:

  • Download and complete the cryptocurrency licensing form from the specific authority where you plan to establish your business.
  • Attach and submit the completed cryptocurrency licensing form along with the names of the company and all of its shareholders.
  • Submit the needed documentation and application fee to the appropriate authority where you will be setting up your business.
  • If the respective authority finds the application form and other documentation appropriate and fitting, the cryptocurrency license will be issued to you within a week of approval.

Advantages of Setting Up A Cryptocurrency Business in Dubai UAE

  • 100% foreign ownership of a local company is permitted, i.e., there is no need to look for a local partner.
  • The taxation system is benign. No corporate income tax can be levied for the next 50 years of operation.
  • There is no limit or restriction on transferring a company’s income and capital.
  • No restriction on currencies.
  • Zero import and re-export taxes.
  • Currently, there is no restriction on foreign employees being a part of the company’s operations.

Please contact our Dubai company formation specialists at +971 56 406 6546 or info@quickbusinesssetup.com for assistance in forming a cryptocurrency firm. We are happy to assist!

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