Over the past few years, the United Arab Emirates has witnessed billions in crypto transactions in the trading market. This distinct asset is rising significantly in the country, highlighting its deliberate role as a leader in cryptocurrency and an investment hub for foreigners. With many investors keen to learn and step into the crypto trading market, the DWTC crypto license has an increased demand in Dubai, UAE.
Cryptocurrency: Briefly Explained
Cryptocurrency is a digital currency that facilitates secure and verified transactions. Since it operates on a decentralized system, it can easily monitor transactions and create new units. This electronic currency enables individuals to send and receive payments anywhere in the world and record the transactions as digital entries in an online database.
Some most common examples of cryptocurrencies in the UAE are:-
- Bitcoin
- Ethereum
- Solana
- Litecoin
- Ripple
Types of Cryptocurrency Licenses in the UAE
A cryptocurrency license allows businesses to issue digital currencies, conduct exchanges, manage assets, and register cryptocurrency exchanges. The various types of cryptocurrency licenses available in the UAE are as follows –
- DWTC crypto license in Dubai World Trade Center
- DMCC crypto license in Dubai Multi Commodities Centre
- IFZA crypto license in International Free Zone Authority
- DAFZA crypto license in Dubai Airport Free Zone Authority
- ADGM crypto license in Abu Dhabi Global Market
DWTC crypto license
Located in the heart of Dubai, the Dubai World Trade Centre (DWTC) is an epicenter for events and businesses. Also known as the DWTC Free Zone, this place is a special area offering a helpful operating environment for businesses, including cryptocurrency companies. The DWTC crypto license is issued to the crypto companies under the supervision of the Securities and Commodities Authority (SCA). The license covers the following activities:-
- Cryptocurrency exchange – Operate a platform for trading cryptocurrencies
- Crypto-asset custody – Provide secure storage and management of digital assets
- Crypto-asset management – Offer investment management services for digital assets
- Crypto-payment solutions – Provide payment processing solutions supporting cryptocurrency transactions
- Initial Coin Offerings (ICOs) – Raise funds by selling tokens to investors
- Distributed ledger technology (DLT) development – Develop and implement blockchain solutions
- Proprietary trading in crypto-commodities – Trade in cryptocurrencies
- Cryptocurrency mining – Generate new units of cryptocurrencies by solving difficult mathematical problems
- Blockchain consultancy – Provide expert guidance and support on all aspects of blockchain technology
Benefits of obtaining a DWTC crypto license
In a global hub of cryptocurrency and blockchain industries like Dubai, securing a DWTC crypto license can bring several advantages for companies that are looking for growth in digital assets. Some of its key benefits include:-
- Ensures adherence to international AML and KYC standards
- Boosts customer trust
- Reduces regulatory risks
- Opportunity for companies to tap into a vast international market
- Promotes business expansion, foreign investments, and global partnerships
- Enjoy the favorable tax policy and enticing economic environment of Dubai
- A transparent regulatory landscape actively supporting fintech and blockchain innovations
- Boosts the global reputation of the company
Steps to securing a crypto license in Dubai
The key tool to develop and sustain your digital asset business in Dubai is a cryptocurrency license. From building customer trust to expanding your business, a crypto license in Dubai can enable your company to be part of the world’s leading cryptocurrency market.
This small guide will facilitate you with the process of registering a cryptocurrency business in the UAE and obtaining a crypto license, highlighting the key steps and aspects.
Select a suitable jurisdiction – Choose the right jurisdiction to register your cryptocurrency business. Apart from DWTC, there are options like the Dubai Multi-Sector Commodity Free Zone (DMCC) and Abu Dhabi Global Market (ADGM) that offer specialized programs for such companies such as privileged tax treatment and the prospects of full foreign ownership.
Define the type of activity – Define the services that you want to carry out in your company. This will help you determine your licensing and regulatory requirements. For cryptocurrency activities, there are various categories of licenses offered by the UAE – trading, brokerage, advisory services, custodial services, and others.
Prepare the documents – The registration of a cryptocurrency firm requires the preparation and submission of several documents, such as a business plan, incorporation certificates, details of beneficial owners and directors, and proof of financial stability. It is to be noted that these requirements may vary based on the jurisdiction and the type of license you choose.
Obtain a license – Once you have selected the jurisdiction and prepared the necessary documents, the next step is to apply for the appropriate license. The process includes a detailed review of the business plan, and financial performance of the company and its compliance with the regulatory requirements, including AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism).
Comply with the regulatory requirements – Cryptocurrency companies in the UAE are required to comply with the stringent regulatory requirements established by both federal and local authorities. These include anti-money laundering (AML), counter-terrorist financing (CFT) standards, and data protection and privacy regulations. Consulting with the legal experts of Shuraa will ensure full compliance with all requirements and help avoid potential pitfalls.
Open a bank account – Opening a bank account for a cryptocurrency company demands strict documentation requirements and bank inspections. Hence, it can be a complicated process. The business owners need to provide proper details about their business such as license, business plan, and owner and management identification. Additionally, to simplify the process, it is better to choose a bank that has experience with cryptocurrency businesses in the UAE.
Implement the internal control system – You will need to implement an effective system of internal controls, including financial accounting, risk management, transaction monitoring, and compliance in order to run a successful crypto business. By developing diligent internal policies and procedures, you can assure the sustainability of the business and protect it from various types of risks.
Develop and scale your operations – Once you have successfully registered your business and begun with your operations, make sure to adapt and scale to ensure long-term success. Scrutinize the market, look out for new trends and technologies in the crypto industry, and expand your offerings in accordance with customer needs and regulatory changes.
Requirements for a DWTC crypto license
The requirements for obtaining a crypto license in Dubai include the following:-
- Adequate funds to cover operating expenses for 6-12 months
- Keep the virtual assets and customer data safe with encryption tech, and multifactor authentication to prevent unauthorized access
- Submit proper financial and operational reports timely to maintain transparency and compliance
- Passport copy of the company owner
- Compliance with the AML/CFT regulations
The final cost of the DWTC crypto license depends on the rules and regulations and the selected free zone. For the exact details on the pricing, it is recommended to consult with Shuraa Experts.
Conclusion
Thus, the cryptocurrency market is one of the most dynamic and innovative markets in the world. However, to succeed in this field, one must ensure meticulous planning, an in-depth understanding of regulatory requirements, and a constant readiness to adapt to changing conditions. Hence, with the right approach and strategic planning, you can thrive in the UAE market and contribute to the development of the global digital economy.
To secure your DWTC crypto license or discover how to start your cryptocurrency and blockchain business in Dubai, schedule a free consultation with the corporate advisors of Shuraa Business Setup at +971 44081900 or info@shuraa.com.
