OBTAINING A CRYPTO LICENSE IN THE UAE: A COMPREHENSIVE LOOK AT THE BENEFITS, REQUIREMENTS & STEPS
The UAE is now more than ever one of the most popular destinations for adapting to new technological advancements & it is no different for the cryptocurrency asset industry. Cryptocurrency assets in the UAE is one of the fastest growing industries right now and the Emirate of Dubai in particular the DMCC has already established itself as a hub for blockchain technology and cryptocurrency businesses. One of the reasons why it has become so popular is the DMCC free-trade zone, which entered into a Memorandum of Understanding (MOU) with the Securities and Commodities Authority (SCA) to establish a regulatory framework for companies in the offering, trading, issuing and listing of crypto assets. This alone makes Dubai the perfect place for cryptocurrency companies to set up their operations.
For regulated businesses, the ADGM Virtual Assets Regulatory Body provides regulation governing digital assets. Through all of these initiatives, the UAE has uniquely positioned itself in order to attract more foreign investments, which will lead to more job opportunities and higher revenues. The incredible growth of the popular cryptocurrency in the UAE also represents how lucrative this cryptocurrency business can be.
The entire process of obtaining a cryptocurrency license in the UAE is so straightforward that any new business owner or international business can embark on with the right guidance, without any hassle seek assistance from our team of company registration specialists at Wincore Advisory Group.
BENEFITS OF OBTAINING A CRYPTO LICENSE IN THE UAE
- Fast company registration, and fair authorisation process if within ADGM.
- 100% foreign ownership (no need for a local sponsor).
- Tax advantages (no corporate or income tax).
- Access to Crypto Valley if registered within the DMCC.
- If within ADGM, then benefit of a regulatory framework that enables you to carry out traditional financial services activities as well as virtual asset or digital securities activities.
- Privilege of being in the first jurisdiction globally to develop and implement a comprehensive virtual asset regulatory framework.
- Access to an English Common Law Jurisdiction, strong judiciary; providing legal certainty and comfort for transactions undertaken in the ADGM.
WHAT ARE THE REQUIREMENTS FOR OBTAINING THE CRYPTOCURRENCY LICENSE IN UAE
There are certain requirements, imposed by the UAE government that you should meet to be eligible for obtaining a crypto license
- Submit required documents including business plan
- Possess completely clean crypto wallet with no fraudulent activity or transaction is a must.
- All cryptocurrencies & crypto assets to be traded must be are incorporated with UAE financial Freezone departments, which must also be approved by the relevant authorities.
- Must have a physical office space designated to the business
- Pay the crypto license fees and all other disbursements
- An amount equal to up to 6 months’ operational expenses; plus unless the Regulator directs otherwise, an additional buffer amount of up to a further 6 months’ operational expenses. Note that additional capital requirements may be imposed by FSRA on the review of the application based on the size, scope, complexity, and nature of the activities and operations of the proposed firm.
- Must have the required appointments; SEO, MLRO, CO, RO, FO.
- Must have an office space leased out.
- Open bank account.
- Pay the crypto authorisation and licensing fees and all other disbursements
WHAT ARE THE STEPS IN OBTAINING A CRYPTOCURRENCY LICENSE?
- Due diligence and discussion with the FSRA, involving an explanation of the proposed business model, demonstration of proposals to meet the requisite regulatory standards and providing in-depth technology demonstrations across all aspects of proposed virtual asset activities;
- Submission of relevant forms and fees, following the discussions with the FSRA and the FSRA having reasonable comfort that the applicant’s processes, capabilities and technologies are at a sufficiently advanced stage;
- Granting of in-principle approval, which approval will be granted after FSRA has considered the relevant forms and supporting documents and is of the view that the applicant meets all relevant rules and requirements;
- Granting of final approval, where the conditions prescribed under the in-principle approval are met to the satisfaction of the FSRA, within the stipulated timeline. While, generally, this is the last step before the relevant activities could be commenced, in the context of virtual assets, this is conditional upon the FSRA being further satisfied in relation to the applicant’s operational testing and capabilities and completion of a third-party verification of the applicant’s systems where applicable; and
- Operational launch testing and third-party verification of the proposed virtual assets to the satisfaction of the FSRA.
HOW CAN WINCORE ADVISORY ASSIST YOU IN OBTAINING A CRYPTO LICENSE
Wincore Advisory Group helps businesses to articulate their objectives and aspirations to obtain a Crypto Asset License in UAE. Our Company Registration Specialists will guide you from start to finish. Contact us at [email protected] OR +971 4 221 2602.