Cryptocurrencies are gaining attraction internationally and across the UAE. As the international hub for finance, innovation, and technology; Dubai is rapidly becoming a popular market for cryptocurrency businesses. Therefore, starting a cryptocurrency exchange in Dubai is a lucrative opportunity during 2024.
Business-friendly policies and tax benefits of United Arab Emirates are significantly easing the company establishment process in different verticals. Similarly, growth of digital economy has led to the appeal of cryptocurrency businesses in Dubai. Driving on the blockchain, several alt coins have taken the financial markets around the world by a storm.
Numerous companies/startups are developing cryptocurrencies, or using blockchain technology to provide services like payment processing, or digital currency exchanges, etc. Cryptocurrency exchange in Dubai is a lucrative venture because of low taxes, 100% ownership for expats, and simple business setup. This makes Dubai an attractive place for entrepreneurs and new company owners to start their cryptocurrency businesses.
Defining the cryptocurrency
What is cryptocurrency?
In a nutshell, cryptocurrency is a decentralized digital currency that is not issued by any central authority or government. Cryptocurrencies don’t have any physical form and they don’t exist in any physical space. You can mine cryptocurrencies, and trade them just like shares on the stock market.
The mining of cryptocurrency includes solving a complex computer puzzle. Upon the successful resolution of the puzzles, new blocks are created and added to a database technology called the blockchain. With blockchain technology, all of the transactions are recorded and stored in a public distributed ledger.
This prevents fraudulent transactions from happening because it tracks each transaction and stores them in the blockchain. It uses encryption techniques to regulate the generation of units of currency. Also, it verifies the transfer of funds or any kind of crypto transaction.
Some of the popular cryptocurrencies out of 1000+ digital currencies available in the world are Bitcoin, Ethereum, Tether, and PolkaDot. Bitcoin is ideal crypto transaction currency worldwide and the UAE. Many entrepreneurs are investing in the cryptocurrency business in Dubai and across the UAE.
Steps for cryptocurrency exchange setup in Dubai
Which are steps for cryptocurrency exchange setup in Dubai?
This is the simple step-by-step for incorporating a cryptocurrency business in Dubai.
- Finalize a company name
- Select the jurisdiction
- Apply for the cryptocurrency license
- Follow all the compliance requirements
Now, we briefly look upon these steps.
Finalize a company name
The first step is to choose a catchy name for your cryptocurrency company. This name should not contain any well-known trade names. Also, don’t use profane words, or blasphemous phrasings.
Select the jurisdiction
Decide which jurisdiction you want to establish your company in. The free zones in Dubai offer you advantages like no currency restrictions, and complete capital and repatriation. Whereas, mainland Dubai provides you better outreach potential to customers in the UAE.
Apply for the cryptocurrency license
Either you want to launch your own cryptocurrency. Or you are setting up a cryptocurrency exchange in Dubai. Once, you are set with the above considerations, you can apply for a cryptocurrency license in Dubai.
Follow all the compliance requirements
Cryptocurrency exchange businesses come under the purview of financial trading. Thus, you must have a valid trading license. Also, you have to comply with the anti-money laundering regulations.
Requirements to get a cryptocurrency exchange license in Dubai
What are requirements to get a cryptocurrency exchange license in Dubai?
UAE’s government has eligibility requirements you must meet to apply for a cryptocurrency exchange license in Dubai.
- A commercial license form from the concerned licensing authority
- Passport copy of all the linked business partners
- A clean crypto wallet record with no history of fraudulent activities or transactions
- Ready visibility of all operational expenses and capital resources for at least 6 months of business operations
- Incorporation of all crypto assets with the UAE financial free zone departments under authorization by the UAE govt
- Submission of a complete business plan to the relevant authorities
Salient features of Crypto exchange license in Dubai
Which are the features of Crypto exchange license in Dubai?
These are the prime features of Crypto exchange license in Dubai.
- Secure and fast Crypto license
- No minimum capital requirement
- Starting from minimum 12000 USD (45000 AED)*
- No requirement for physical office
- Issuance of Crypto license in 3 months*
(Terms and conditions apply)
Obtaining a cryptocurrency exchange license in Dubai
How to obtain a cryptocurrency exchange license in Dubai?
Here is the way to get a cryptocurrency exchange license in Dubai.
- Consult with experts who can make your business setup procedure become hassle free
- Prepare the necessary documentation for your business
- Submit application on behalf of the shareholders
- Include relevant documents like passport copies and photographs
- Choose the office tenancy options as per your business requirements
- Pay the crypto license application fees to the respective authority through your consultants
If everything works out, the authorities will award the cryptocurrency license in Dubai within a few weeks of approval.
Conclusion
Cryptocurrency offers immense growth and profit potential. However, the procedure of forming a cryptocurrency exchange in Dubai involves dealing with several rules, regulations, and requirements. Furthermore, you must have knowledge about DED, FSRA, ADGM, etc.
In the event, you are a new entrepreneur in this crypto-trading business. Then you want an easy procedure to get acryptocurrency exchange license in Dubai. Likewise, the same is the case with companies who desire to introduce cryptocurrencies.
Worry not, as KWS Middle East is a leading expert in cryptocurrency company formation in Dubai. We provide end-to-end business setup and consultation services in UAE and manage the entire registration process on your behalf. So that you can focus on the important task of growing your business.
