Many Indian investors and new-age entrepreneurs are looking for diversified methods to develop their wealth, and the cryptocurrency business is growing in popularity around the world. In the upcoming years, the new digital money is likely to become more mainstream in commercial activities. Therefore, it makes complete sense to start a crypto business in Dubai.
With additional free zones permitting enterprises to engage in crypto trading, crypto asset management, bitcoin trading, and associated activities, the UAE has become more mainstream.
Companies can trade and administer their digital currencies with a cryptocurrency business license in the UAE from the:
- Dubai Multi-Commodities Center (DMCC)
- Dubai Airport Free Zone (DAFZA)
Cryptocurrencies are becoming increasingly popular in the Emirates, and there's a lucrative opportunity to venture into the areas of cryptocurrency trading, holding, exchanges, and numerous other new business opportunities.
How to Start a Crypto Business in Dubai, UAE
Indian new-age investors and global crypto enthusiasts can set up a crypto business in Dubai by following these steps:
- Finalize Your Company’s Name
- Choose the Preferred Jurisdiction
- Register for a Cryptocurrency License
- Abide by All the Compliance Regulations
Here, we discuss each step in detail to make it easier for you:
1. Finalize Your Company’s Name
The first stage is to come up with a company name that's free of profane words, or well-known trade names. In addition, it should be simple and memorable. Furthermore, you should use a person’s complete name (and not a nickname) if you want that as your business trademark.
2. Choose the Preferred Jurisdiction
Decide on whether you want to establish a crypto business in a Dubai-free zone or on the mainland. Note that you’ll have no currency constraints in the free zone. In addition, you can also enjoy the income and gain repatriation. On the other hand, a mainland establishment gives you hassle-free access to all the Emirates in the UAE.
3. Register for a Cryptocurrency License
You can register for a crypto license in Dubai, UAE once you've made the above considerations. Moreover, you can send this application directly to the concerned governing body. However, it becomes a bit hectic for an expatriate to manage so many things alone. Therefore, it’s better to collaborate with the crypto business experts at the Shuraa Business Setup.
4. Abide by All the Compliance Regulations
Bitcoin trading is supervised in the same way as traditional financial trades In Dubai. Therefore, you must have the appropriate license and also follow anti-money laundering regulations. Any carelessness in this regard can lead to business repercussions.
What are the Requirements for Setting Up a Crypto Business in Dubai?
You need to meet all the established requirements to start a crypto business in Dubai. These include:
- The "UAE financial free zone" divisions should be integrated with all crypto assets.
- Ensure that your capital resources alongside any other operating expenses are accessible for at least six to twelve months.
- There are no fraudulent transactional operations permitted, and a perfect track record is essential.
- Make certain that your data is safe in the crypto wallet.
- Include copies of all of your business partners' valid passports.
- Submit a commercial license form to the preferred crypto administrative authority.
Note that the concerned crypto authority will offer you a cryptocurrency license form when you submit your complete business plan for a cryptocurrency license in Dubai.
Documents Required to Starting a Crypto Business in Dubai
Starting a crypto business in Dubai requires general documents to ensure compliance with regulatory standards, this typically includes:
- Passport Copies
- Proof of Address
- Bank Reference Letter
- Police Clearance Certificate
- Business Plan
- Memorandum of Association
- Shareholder Agreements
Benefits of a Crypto Business in Dubai
You can enjoy several benefits after setting up a crypto business in Dubai. We discuss some of these advantages below:
1. Brand’s Standout Feature
Businesses that accept cryptocurrencies are always in the spotlight. You immediately set yourself apart from the competition by announcing that your company takes cryptocurrency. Moreover, Bitcoin has a passionate user base. This segment will be excited to promote and buy from a company that isn't afraid to experiment with new payment methods.
2. Low Transactional Expenses
Cryptocurrency lowers a company's running costs significantly. Cryptocurrency payments do not have a service fee. Therefore, this makes it a particularly advantageous transaction method for companies in Dubai.
Furthermore, transactions are global and conducted in near real-time, irrespective of the sender's and recipient's geographical locations. Therefore, crypto transfers are significantly cheaper than other transactions, thanks to the absence of cross-border barriers.
3. Enhanced Security
The expansion of the digital business world has been fueled by credit cards. In addition, credit cards have allowed online businesses to communicate with customers wherever they are by allowing them to conduct transactions without having to be physically there. Due to the irreversibility of crypto transactions, they create a sense of security while making international payments.
4. Comprehending Blockchain
The popularity of cryptocurrencies has only grown. Moreover, blockchain technology will potentially become popular if the current trends persist. Therefore, as with any rising phenomenon, early entrants will have a major edge over those who arrive later.
5. Data Confidentiality
Every year, news of a big corporation's breach of client data makes headlines around the globe. Customers are vulnerable to identity fraud and, subsequently, the compromise of their hard-earned wealth as a consequence of the lack of personally identifiable data.
Therefore, one of the most tempting features of cryptocurrencies is the increased secrecy of the payment process. In addition, the buyer can provide as much or as little information as they choose.
Things to Consider Before Launching a Cryptocurrency Company in the UAE
Technical expertise has shown to be incredibly beneficial. If you want to launch a crypto company, you must be passionate about technology. Every crypto company needs specialist knowledge to fully fathom the core blockchain technologies, whether you aspire to be a designer, a trader, or a marketer.
The blockchain sector is a high-risk, high-reward venture that is not for the faint-hearted. Because blockchain is a novel technology, it is subject to volatility and currency fluctuations. One of the wisest things a cryptocurrency company can do to prevent getting overexposed to crypto is to diversify its products. Therefore, risk-averse businesses should diversify their revenue streams to withstand market slumps.
In addition, although the cryptocurrency market appears to be incredibly appealing and lucrative, it's still a relatively new industry. Therefore, this makes it unpredictable and a bit risky in some instances. Regardless of the concerns, you’ll need to approach venture capital firms to secure funding for your company.
What is the cost of setting up a crypto business in Dubai?
Indian Investors and business owners who want to start their cryptocurrency business in Dubai can expect to pay between AED 12,500 to AED 25,000 for the license. However, the actual cost may vary depending on the applicable law and free zone. For the exact cost, reach out to Shuraa Business Setup Experts.
Launch Your Crypto Business in Dubai!
Now is the right time to set up a crypto business in Dubai, thanks to the lenient cryptocurrency laws in the UAE. All you need to do is connect with the crypto experts at the Shuraa, and we’ll handle the rest.
Our consultants help you finalize the location, acquire a crypto license, and a lot more at cost-effective prices!
