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The UAE Crypto Landscape: Premium Destination For Crypto Firms

July 13, 2022by Mohammed Rahali

The UAE Crypto Landscape: Premium Destination For Crypto Firms

The UAE Crypto Landscape is one of the fastest-growing in the world and since Dubai Government introduced the first Virtual Assets Law that covers the regulation of Virtual Assets (VAL), this has sealed Dubai’s vision to establish its position as a global leader in the future of virtual assets. While VARA will be responsible for licensing and regulating the virtual asset sector across Dubai (mainland and free zone territories, excluding activities related to virtual assets in the DIFC), the DIFC is responsible for licensing crypto-related activities in DIFC Free Zone under the regulation of the DFSA, the ADGM is responsible for licensing crypto-related activities in ADGM Free Zone under the regulation of the FSRA,  and the DMCC is responsible for licensing certain crypto activities in DMCC Free Zone under the supervision of the SCA.

 

DWTC – VARA DMCC – SCA ADGM – FSRA DIFC – DFSA
  • Operating and managing virtual assets’ platforms services

 

Distributed Ledger Technology Services:

This activity 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 setup an exchange for, currencies or cryptocurrencies/commodities or provide any financial activity services, brokerage or payment processing.

Non-Custody Intermediary Activities only:

·         Marketing

·         Advising on the merits of Buying or Selling Assets or any right conferred by such Buying or Selling

·         Making arrangements with a view to another person (whether as principal or agent)

Marketing, Issuing, Trading or Holding Investment Tokens (Investment Tokens are defined as Security Token or a Derivative Token):

 

·         If you are an Investment Advisor, Asset Manager, Fund Manager, Custody Provider, Alternate Trading System Operator (MTF and OTF), Exchange & Clearing Houses, Crowdfunding Platform, all dealing in Investment Tokens, then these licensed activities will be relevant to you.

  • Exchange services between virtual assets and currencies, whether national or foreign
  • Exchange services between one or more forms of virtual assets

 

Proprietary Trading in Crypto-commodities:

This activity includes the buying and selling (Proprietary Trading) of crypto-commodities developed on distributed ledger technology applications, and does not include acting as an exchange, providing brokerage services, financial services, banking services, payment processing or storage services. This activity is a standalone license activity allowed for new companies only and cannot be conducted with other activities under the same company, subject to meet our standard requirements and additional requested documents / requirements for this specific activity.

Virtual Asset Custodian and Non-Custody Intermediary Activities:

·         Marketing

·         Advising on the merits of Buying or Selling Assets or any right conferred by such Buying or Selling

·         Buying, Selling or providing custody of Assets

·         Buying, Selling or exercising any right (whether as principal or agent)

·         Managing Assets belonging to another person

 

 

  • Virtual assets’ transfer services
  • Virtual assets’ custody and management services

 

NFTs E-Marketplace Provider:

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. Standalone license activity allowed for new companies only and cannot be conducted with other activities under the same company.

MTF:

·         Operating a Multilateral Trading Facility(MTF)

 

  • Services related to the virtual assets’ portfolio
  • Services related to the offering and trading of virtual tokens.

 

Metaverse Service Provider:

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 which are traded on exchanges or trade in crypto commodities.

Standalone license activity allowed for new companies only and cannot be conducted with other activities under the same company

 

MTF and Virtual Asset Custodian

·         Operating a Multilateral Trading Facility(MTF)

·         Providing Custody of Assets

 

 

 

  • DWTC – VARA = Dubai World Trade Centre – Virtual Assets Regulatory Authority
  • DMCC – SCA = Dubai Multi Commodities Centre – Securities and Commodities Authority
  • ADGM – FSRA = Abu Dhabi Global Market – Financial Services Regulatory Authority
  • DIFC – DFSA = Dubai International Financial Centre – Dubai Financial Services Authority

 

How Can Wincore Support In Crypto Licensing?

Choosing an appropriate license and the right jurisdiction for your crypto assets business needs can seem challenging and confusing to navigate. Therefore, it is worth investing in effective and expert advisory very early on, to be assured that you are on the right track.  Our experts are committed to advising and supporting you throughout the process from the beginning to the end and enable you to make informed decisions that satisfy your business requirements. You can get in touch with our Corporate Team today, or book a free consultation with one of our experts today to get started.

For Support and assistance on this matter get in touch with our Corporate Team today. 

Wincore specializes in TaxEstateCorporate 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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Mohammed Rahali

Managing Partner

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