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Dubai Crypto License: A Complete Guide for 2024

Dubai is rapidly emerging as a leading destination for obtaining a crypto license in Dubai. The city offers a favorable regulatory framework, robust infrastructure, and a supportive economic environment, making it an attractive hub for cryptocurrency businesses. To successfully obtain a crypto license in Dubai, it is essential to understand the specific regulations and requirements of each jurisdiction. Depending on the chosen economic zone—such as DMCC, IFZA, ADGM, DWTC, or DAFZA—the conditions for acquiring a crypto license may vary. However, all companies must meet general requirements, including authorized capital, compliance with KYC and AML policies, and submission of certified documents.

Dubai provides exciting opportunities for crypto entrepreneurs to issue digital currencies, manage crypto assets, and operate exchanges or brokerage services under the supervision of the Virtual Asset Regulation Authority (VARA). With well-established business zones like DMCC, DIFC, and others, the UAE offers a prime location for establishing a successful digital asset business. Obtaining a crypto license in Dubai is the first step to accessing one of the world’s most dynamic digital asset markets.

Please note that in most cases, you must register with the Virtual Asset Regulation Authority (VARA) to operate a licensed cryptocurrency company in Dubai. VARA introduced its Virtual Assets and Related Activities Regulations, which came into effect on February 7, 2023. These regulations apply to all virtual asset service providers.

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Introduction

Dubai has emerged as a global hub for cryptocurrency businesses, offering an attractive blend of favorable regulations, tax advantages, and access to cutting-edge infrastructure. Whether you’re looking to launch a crypto exchange, manage digital assets, or explore NFTs, obtaining a crypto license in Dubai is your gateway to success in the rapidly growing blockchain industry.

In this guide, we’ll explore the benefits, licensing options, and step-by-step process to help you navigate the world of cryptocurrency licenses in Dubai.

Benefits of Obtaining a Crypto License in Dubai

  • Tax Benefits: Dubai provides a highly favorable tax environment for cryptocurrency companies. With 0% corporate tax and 0% tax on dividends, businesses can enjoy greater profitability. The UAE also has over 123 double tax treaties with other jurisdictions, which helps reduce the overall tax burden.
  • Full Foreign Ownership: Entrepreneurs can have 100% ownership of their business without the need for a local partner. This allows you complete control over your enterprise and operational decisions.
  • Fast-Growing Crypto Market: Dubai’s government supports the fintech ecosystem, actively encouraging growth in blockchain and digital assets. The Virtual Assets Regulatory Authority (VARA) is at the forefront of creating a secure regulatory framework, ensuring both stability and innovation.
  • No Currency Restrictions: The UAE does not impose restrictions on currency exchange or repatriation of profits, providing you with the freedom to manage your capital.
  • Supportive Infrastructure: The UAE has a stable economy, a business-friendly environment, and world-class financial infrastructure, which makes it an ideal location for blockchain and crypto businesses.

Types of Crypto Licenses Available

  • Dubai Multi Commodities Centre (DMCC) License: DMCC is one of the most popular free zones for crypto companies. This license allows you to engage in trading digital currencies, developing blockchain-based applications, and providing asset management services.
  • IFZA License: The International Free Zone Authority (IFZA) offers licenses that enable entrepreneurs to engage in crypto transactions, exchange services, and asset storage. IFZA’s flexible policies make it an appealing option for small to medium-sized crypto businesses.
  • DAFZA License: Dubai Airport Free Zone Authority (DAFZA) allows businesses to trade cryptocurrencies and provide related services. This license is regulated by the Securities and Commodities Authority (SCA).
  • ADGM License: Abu Dhabi Global Market (ADGM) offers comprehensive regulatory frameworks for crypto businesses, allowing activities such as exchange services, asset management, and custody.
  • DWTC License: Dubai World Trade Centre (DWTC) also offers licenses for distributed ledger technology services and crypto trading under the supervision of VARA.

Requirements for a Crypto License

To obtain a crypto license in Dubai, companies must fulfill the following requirements:

  • Authorized Capital: Minimum authorized capital of approximately $13,600.
  • Business Plan: A detailed business plan outlining the goals and scope of your cryptocurrency business.
  • Compliance: Adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) policies to ensure customer data safety.
  • Document Submission: Certified copies of all founders’ documents, including passports and proof of identity, must be provided.
  • Corporate Bank Account: Open a bank account and deposit the minimum authorized capital required.

Steps to Obtain a Crypto License In Dubai

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Steps to Obtain a Crypto License in Dubai

Talk with our founder Mardo Soo
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Steps to Obtain a Crypto License in Dubai

Talk with our founder Mardo Soo

Register a Legal Entity: Begin by registering a legal entity and selecting a business name for your crypto venture. It’s important to ensure that the name complies with local standards and isn’t already taken.

Choose a Jurisdiction: Decide whether you want to set up in a free zone or on the mainland. Each jurisdiction has its specific requirements, advantages, and fee structures. Popular options include DMCC, IFZA, DAFZA, and ADGM.

Open a Corporate Bank Account: You will need to open a company bank account and deposit the required minimum authorized capital.

Submit Required Documents: Gather and submit all the necessary documents, including the business plan, AML/KYC policies, and certified copies of founders’ documents.

Obtain the License: Work with the regulatory authorities—such as VARA or SCA—to fulfill all requirements and receive approval for your crypto license

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Taxation for Crypto Companies

Dubai offers 0% corporate tax for cryptocurrency businesses, making it one of the most tax-friendly jurisdictions globally. Additionally, the absence of tax on individual income from international activities and on dividends means you can retain a significant portion of your earnings. Value-added tax (VAT) is set at a low rate of 5%, applicable only on standard transactions.

Regulatory Authorities and Compliance

The regulatory framework for crypto businesses in Dubai is managed by several authorities, including:

  • Virtual Assets Regulatory Authority (VARA): VARA supervises all crypto-related businesses in Dubai, ensuring compliance with local and international standards.
  • Securities and Commodities Authority (SCA): SCA oversees crypto licensing for entities operating under DAFZA and provides regulatory guidance.
  • Financial Services Regulatory Authority (FSRA): FSRA governs activities in the ADGM zone, offering comprehensive rules for crypto companies.

Frequently Asked Questions

Typically, the process takes between 4 to 12 weeks, depending on the regulatory body and the completion of required documentation.

Yes, to legally trade cryptocurrencies, you need to obtain a license from the relevant regulatory authorities.

No corporate or income tax is levied on crypto transactions. However, standard transactions may be subject to a 5% VAT.

The cost of a crypto license can range from €6,000 to €25,150 or more, depending on the jurisdiction and nature of the business.

Conclusion

Dubai is positioning itself as a global leader in the crypto and blockchain industry. By providing a favorable tax regime, 100% foreign ownership, supportive infrastructure, and a growing fintech ecosystem, Dubai offers an ideal environment for cryptocurrency businesses to thrive. With several types of licenses available, entrepreneurs have the flexibility to choose a setup that best aligns with their business needs. If you’re ready to start your crypto journey, obtaining a Dubai crypto license is the first step toward accessing one of the world’s most exciting digital asset markets.