DMCC Crypto Companies Set Up – Crypto Company Formation Now At DMCC
Dubai Multi Commodities Center (DMCC) Freezone is a center of Global trade responsible for issuing different types of Licences for trading activities, especially in the sectors of commodities, Gold, Precious stones, Base Metals, Tea, Coffee, Cacao, Crypto, etc. DMCC has entered into a memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) to establish a regulatory framework for businesses offering, issuing, listing, and trading Cryptocurrency Assets in DMCC. The agreement will see businesses dealing with crypto assets gain access to bespoke Crypto Trading licenses offered by the DMCC Crypto Centre, first-class customer service, a range of incentives, and the strong business regulatory framework developed by DMCC. The SCA will be responsible for issuing approvals for crypto businesses looking to set up in DMCC. The SCA is the official regulator for the crypto activities in DMCC, regulating in line with their policies to develop an integrated ecosystem for the crypto and blockchain industries.
At the moment, there are four activities for which DMCC Crypto Company licenses can be obtained:
Proprietary Trading in Crypto-commodities- Subject to pre-approval
Includes the buying and selling (Proprietary Trading) of crypto-commodities developed on distributed ledger technology applications. This activity does not include acting as an exchange, providing brokerage services, financial services, banking services, payment processing or storage services. DMCC does not issue licenses to companies engaged in activities such as crypto exchange, crypto brokerage services, financial services, banking services, payment processing or storage services. If you require much more regulated activities like a crypto exchange, providing custody, acting as brokerage, or any other regulated financial services, there are other crypto asset licensing solutions.
Distributed Ledger Technology Services- Subject to pre-approval
Includes providing database management solutions and ancillary services based on distributed ledger technologies, such as Blockchain. Companies with these activities are not permitted to trade in, or set up an exchange for, currencies or cryptocurrencies/commodities or provide any financial activity services, brokerage or payment processing.
NFTs E-Marketplace Provider– Subject to pre-approval
Includes firms engaged in providing an online platform for the buying & selling of third parties’ unique digital assets (NFTs) and facilitates commercial interactions between buyer and seller in return of a commission or remuneration. The online platform cannot be used to trade or promote crypto-commodities, cryptocurrencies or NFTs covering any regulated products or securities.
Metaverse Service Provider– Subject to pre-approval
Includes firms engaged in the development and hosting of digital virtual environments, which enable simulated interactions between individuals. Companies with this activity are not permitted to issue tokens that are traded on exchanges or trade in crypto commodities.
“DMCC Awarded ‘Global Free Zone of the Year’ for a Record Sixth Consecutive Year”
All crypto companies set up in DMCC will also benefit from DMCC’s business regulatory framework, which increases the ease of doing business whilst upholding robust governance and transparency
DMCC has a strong track record of using cryptographic and distributed ledger technologies, with their blockchain-enabled Agri commodities trading platform, Agriota, connecting farmers in India with consumers in the UAE, and the DigitalSugar platform utilising blockchain for the international trading of sugar. DMCC signed an agreement with CV Labs and CV VC in 2020 to support the development of a leading crypto ecosystem in Dubai. The DMCC Crypto Centre will also house a leading crypto advisory practice led by CV Labs, the entity behind the Switzerland government-backed Crypto Valley, which has previously spawned Crypto leaders such as Cardano and Ethererum. The DMCC Crypto Centre will offer co-working spaces to crypto businesses, entrepreneurs and SMEs and a range of incubator and accelerator programmes, all within the DMCC’s vibrant Jumeirah Lakes Towers district, in the heart of Dubai.
Now is the time to get into the crypto business as DMCC is making it easier for crypto and blockchain businesses to set up and operate in Dubai. Cutting-edge technologies are also at the forefront of DMCC’s strategy and they will play an instrumental role in driving increased trade through Dubai in the future.
Benefits of Setting up your Crypto Business in DMCC
- There are low setup costs starting from USD$20,000*; which typically includes a flexi-desk and 1 UAE Residence Visa;
- There is a low capital requirement in the form of a paid-up share capital (50,000* AED – which is made out as a one-time deposit);
- 100% Foreign Ownership and absolutely no need for a local shareholder (local sponsor);
- Reasonably fast approval time (on an average 7-10 working days, depending on the early submission of completed application file);
- Blockchain Knowledge;
- Confidentiality and Privacy;
- 0% income tax or corporate tax;
- Full capital Repatriation;
- No duty on Import or export;
- State of the art infrastructure;
- Brand visibility;
- Jurisdiction reputation.
HOW CAN WE HELP YOU IN SETTING UP A DMCC CRYPTO COMPANY?
If you wish to discuss setting up a DMCC Crypto Company, or any other legal entity, feel free to contact us today.
Wincore specializes in Tax, Corporate and Fiduciary matters. We provide pragmatic, flexible and efficient solutions to individual entrepreneurs, startup businesses, foreign and local SMEs, multinationals, wealthy international families, HNWIs and UHNWIs.
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*Figures quoted in this article are exclusive of any other disbursements, and they are subject to change at any time and without notice.