How to start a crypto business in Dubai – the first and foremost thing that comes to mind for most people, companies, and startups about cryptocurrency is how can I make money from the blockchain. The number one application of blockchain and obviously the most talked about is cryptocurrencies. With all the hype around cryptocurrencies, it can be pretty confusing learning where and how to take advantage of this emerging field. Dubai is one of the most interesting places on earth. When talking about business, this city is known for being the best place in the world – it has futuristic architecture, rich history, and an unbelievable climate. And if you are a crypto startup with the idea of becoming successful, you may want to be also in Dubai.
Crypto business setup process in UAE:
The process is similar to any other business setup in Dubai. here are the steps for the crypto business process.
- Choose the business name: it says that you name trademark name should be eligible to get company registration by the UAE government.
- Choose the Business location: Before going for the application submission, you should select the location in which you wish to set up a crypto business. Here in Dubai, you have many benefits whether you choose the mainland or in any free zone jurisdictions.
- Apply for the cryptocurrency license and registration process: There are many business setup consultants in Dubai like us to help you to get your registration. Also, the Dubai Department of economic development also guides you through the process.
- Approval: After all successful document submissions, you will get approval and the cryptocurrency business license in seven government working days.
Documents required for a Cryptocurrency license are:
- Passport copy of yours and the shareholders
- Commercial License Form Given By DED
- Business Plan
- Bank-related documents like Captial business resources, updated transaction statements ie clean crypto wallet records with no fraudulent actions
- Notary public attested documents like Memorandum of association
Places to get a license for Crypto business in Dubai UAE :
The Dubai Multi-Commodities Centre (DMCC) has announced that it will be issuing licenses to cryptocurrency companies. The DMCC is one of the largest free zones in the world, and it includes gold and diamond trading companies. It also hosts some of the largest banks in the Middle East, including HSBC and Standard Chartered.
The Dubai Airport Free Zone Authority (DAFZA), which oversees seven free zones in Dubai, has also announced that it will issue licenses to crypto companies.
Abu Dhabi Global Market (ADGM) plans on issuing licenses for crypto companies as well. ADGM is an independent financial market regulator that offers regulatory services to the UAE’s capital city Abu Dhabi.
What is cryptocurrency?
A cryptocurrency is a form of digital money that uses encryption techniques to secure transactions and control the creation of new units. The most famous use case for cryptocurrencies is Bitcoin.
Crypto-currencies are not legal tender in any jurisdiction and are not backed by any government or central bank. Their value depends on supply and demand as well as speculation. The supply of most major crypto-currencies is capped at a certain point—and if you’re lucky enough to get one, you can trade it or use it as payment.
Block Chain technology?
Blockchain technology is a new way of storing and sharing data. It allows people to store records in a public ledger that is visible to everyone, but only individuals with a private key can access those records. This allows blockchains to be used as public databases while preserving the privacy of the individuals who contribute their data to it.
Because blockchains are decentralized, they allow information to be exchanged between parties without requiring an intermediary like a bank or government agency. This makes them ideal for use in industries where transparency and trustworthiness are essential, such as healthcare or financial services.
What is cryptocurrency tax?
Cryptocurrency tax is a form of income tax imposed on your cryptocurrency gains. The UAE has made it mandatory to pay this tax and it is important to understand how it works.
How do I pay cryptocurrency taxes?
You can either pay your cryptocurrency taxes directly through your crypto wallet or through an exchange platform. You can also opt for a third party to handle the payment on your behalf.
How much am I required to pay?
The amount you are required to pay depends on whether or not you are a resident in Dubai and what type of crypto assets you own:
For non-residents, you will be charged 20% tax on any profits made from trading or selling cryptocurrencies within 24 months of purchasing them; profits made in the first two years are exempt from this rule.
For residents, you will be charged 30% tax on any profits made from trading or selling cryptocurrencies within 24 months of purchasing them; profits made in the first two years are exempt from this rule.
What are the benefits of the crypto business in Dubai?
1. Security – Dubai is one of the safest cities in the world, and it’s a great place to start your crypto business.
2. Low Transaction Charges – Crypto businesses only have to pay small fees for transactions, compared to banks that charge huge amounts per transaction.
3. Fast and Smart Regulatory Process – The UAE has a very fast and smart regulatory process that helps businesses grow faster than their competitors.
4. Global Recognition of UAE – The UAE is known all over the world as a country that respects privacy, which makes it easy for entrepreneurs to set up their companies without worrying about security issues or other problems that might arise from being based in another country like China or Russia, where there are strict laws regarding how much information can be shared with outsiders (or even within your own country).
5. Crypto Center Participation – Participating in this center will allow you to learn more about cryptocurrencies without having to worry about violating any laws or regulations that exist outside of Dubai because there aren’t any!
We help in setting up a crypto business in Dubai
If you are planning to set up a crypto business in Dubai, we can help you with that. We have experts who know how to build your business from scratch and make it successful. We also have experts who will help you get the right license to operate your crypto business. If you need any legal advice or assistance, we have lawyers who are ready to help at all times. Feel free to contact us for free consultation.