Dubai is aiming to become the crypto capital of the world by issuing the trailblazing ‘Dubai Virtual Assets Law’ (Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai). Some of the top crypto exchanges in the world have decided to move into the emirate to leverage the opportunities for business setup in Dubai. Crypto exchanges such as Binance and BitOasis have been granted a license by Dubai authorities. Meanwhile, crypto exchange By bit has announced it will move its headquarters from Singapore to Dubai.
The introduction of the new law has opened a plethora of opportunities for crypto entrepreneurs to set up businesses and grow. However, entrepreneurs need to understand the nuances of the law as well as the scope of the newly opened opportunities. The best way to leverage the opportunities is to seek advice from business setup consultants in Dubai. Meanwhile, this article will shed light on the business opportunities opened in the wake of the new crypto law.
A Solid Regulatory Regime
Business activities related to cryptocurrency and other virtual assets will be regulated by the ‘Dubai Virtual Assets Regulatory Authority’ (VARA). VARA is affiliated with the Dubai World Trade Centre (DWTC) authority and will have legal personality, and financial and administrative autonomy. VARA will develop the regulations, rules, and standards governing Virtual Asset Platforms, Virtual Asset Service Providers, and all other matters related to Virtual Assets. The strong regulatory regime of VARA will make the process of business setup in Dubai easier and more reliable for crypto entrepreneurs.
Wide Range of Crypto Activities
The new Virtual Assets Law has set out a list of activities under which a trade license can be obtained. The activities are:
- Virtual Asset Platform operation and management services
- Services for the exchange between Virtual Assets and national or foreign currencies
- Services for the exchange between one or more forms of Virtual Assets
- Virtual Asset transfer services
- Virtual Asset safekeeping, management, or control services;
- Services related to Virtual Asset Wallets
- Services related to the offering, and trading in, Virtual Tokens
Ability to Conduct Business within the Free Zones
The UAE has more than 40 active free zones and over 30 are located in Dubai. Free zones are known for their independent regulatory structure, strategic location, tax exemptions, 100% ownership and robust infrastructure. The landscape of business setup in Dubai free zones is ideal for crypto companies that wish to do business in the international markets. Furthermore, a free zone license can be obtained within a few days of applying without any hassle.
Dubai World Trade Centre (DWTC) and Dubai Multi Commodities Centre (DMCC) are the free zones that currently issue virtual assets licenses. Business setup consultants in Dubai can help you obtain a virtual assets license from any of these free zones. However, the new Virtual Assets Law doesn’t cover Dubai International Financial Centre (DIFC), which is a leading financial free zone in Dubai.
Build the future of crypto in Dubai
Crypto entrepreneurs and investors get a conducive environment of business setup in Dubai due to a wide range of factors. The emirate is strategically situated between Europe and Asia and offers a gateway to the lucrative markets in the Middle East and Africa region. Crypto entrepreneurs can benefit from a strong legal system, stable political regime, lower taxation (VAT and the upcoming corporate tax are among the lowest in the region), robust infrastructure etc. Moreover, business setup consultants in Dubai can make the setup process less daunting.
Jitendra Business Consultants can help you to Obtain Cryptocurrency License in Dubai
The environment of business setup in Dubai has evolved to accommodate the requirements of cryptocurrency investors after the introduction of the new Virtual Assets Law. After getting the approval of VARA, entrepreneurs can obtain a crypto license from progressive free zones such as DWTC, and DMCC. Business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can assist the investors in obtaining approval from VARA and the relevant free zone authorities.
JBC’s highly qualified company formation experts can ease the troubles of company incorporation by offering the best solutions for opening a cryptocurrency company in Dubai. Our consultants can help investors select the right free zone license based on the business activity. We will take care of the documentation for registering a company in Dubai, reducing the pressures on the business owners. JBC can advise you on the best budget-friendly/cost-effective proposal for company startups and help make your dream a reality.