Digital platforms are evolving globally & the worlds’ economy is irresistibly moving towards a digital ecosystem. From investing to transferring money, everything is happening digitally. The newest and most promising addition to the digital economy division is cryptocurrency. This new form of digital currency anticipates growing into the mainstream of business operations in the future years. Hence, many investors are trying to get a Cryptocurrency license in Dubai to set up their business in this sector.
Cryptocurrency license in Dubai has increased opportunities to explore the lines of Crypto Currency trading, storage, transactions and has become host to new business possibilities. Cryptocurrencies such as Bitcoin, Etherum, Dogecoin, Ripple, Tether are available for trading in the online Crypto Exchanges in Dubai.
Companies that desire to operate a business in this field must obtain a CryptoCurrency License in UAE. Many free zones permit companies to indulge in Crypto Asset handling, Crypto trading, bitcoin trading, and related activities.
Cryptocurrency License offered by Companies that want to set up a cryptocurrency business can obtain the cryptocurrency license in UAE from any of the three trade zones.
The Dubai Multi-Commodities Centre-
A company must register in the Dubai Multi Commodities Centre (DMCC) to get a Cryptocurrency License to perform the stipulated business activities. With the Cryptocurrency License from DMCC, the company can offer its customers all the governed by rigid regulations from the UAE Government and the Central Bank.
Dubai Airport Free Zone Authority or DAFZA-
Dubai Airport Free Zone Authority (DAFZA) incorporates the Crypto-Currency License issuance for global investors. DAFZA has signed an agreement with the Securities and Commodities Authority (SCA) to keep the crypto assets trading and related business activities. DAFZA also provides legislative support for the smooth functioning of the business activity. The ambition of DAFZA is to drive the bitcoin trading growth and the overall cryptocurrency division in the region. Although DAFZA has not yet started with licenses, International Free Zone Authority (IFZA) also provides a crypto license.
Abu Dhabi Global Market (ADGM)-
The Abu Dhabi Global Market (ADGM) Free Zone allows crypto businesses regulated by the Financial Services Regulatory Authority (FSRA). FSRA is the regulatory body that supervises all crypto-related acquisitions in the UAE. Currently, FSRA is the only legal body to have an extensive administrative framework for cryptocurrency licenses in UAE.
Process of obtaining the Cryptocurrency License in Dubai-
The process of obtaining a cryptocurrency license in Dubai is time-consuming and depends on each case so the exact timeline cannot be provided. A company that wants to get a cryptocurrency license in UAE must follow the steps mentioned below:
1.The company must attach and submit the filled-up form with all their and shareholder names.
2. Make the necessary payment to the respective authority that provides a cryptocurrency license to the company.
3. Once all the required documents are submitted & approved, the authority will provide the cryptocurrency license within a week.
Measures to Secure a Crypto Currency License in Dubai-
UAE allows Crypto Currencies for trading subject to some regulations. Companies longing to secure a cryptocurrency license must:
1.Successfully operate the business for at least six months, the company should contain sufficient funds.
2.The company should adhere to a strict KYC Norm and should fulfill disclosure to anti-money laundering, value-added tax, and other government references on request.
3.The company must safeguard against cybersecurity.
UAE has been prompting in adopting new advanced technology, and it is the same with cryptocurrency. Many companies around the world are encountering success with it. The city is becoming a developing hub for businesses looking to plunge into cryptocurrency. Thus, the government has released the Cryptocurrency License in UAE to encourage this development.
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