The UAE has become a hotspot for virtual asset companies thanks to the unprecedented growth of financial technologies and an expanding digital economy. As per news reports, the UAE’s share in the global crypto market has surged 500% between 2020 and 2021, taking it over USD 25 billion in transactions value. Unlike most other countries, the landscape of business setup in the UAE is ideal for crypto companies.
This is because the UAE has established robust laws to regulate the setting up of crypto currency businesses in the country. Moreover, the free zones in the country offer business licenses for crypto companies in the UAE. This is in contrast to other countries that have viewed the crypto businesses with skepticism. Business setup consultants in the UAE can help you set up cryptocurrency company in the country. Now let us discuss some of the free zones that provide crypto currency license in the UAE:
Abu Dhabi Global Market
Abu Dhabi Global Markets (ADGM) is a financial free zone located in Abu Dhabi. ADGM offers licenses for crypto asset-related businesses along with a supportive infrastructure. Company registration in ADGM provides the crypto companies with an independent jurisdiction with its own legal framework, regulatory framework and financial services infrastructure. Setting up a company in ADGM gives you access to a secure and transparent environment for the development of the crypto asset sector. Here are the crypto activities that can be licensed by the ADGM:
- Crypto exchange license
- Crypto asset custodian
- Managing other person’s crypto assets
- Providing custody of crypto assets
- Buying, selling, and exercising any right in accepted crypto assets
- Marketing of crypto assets
Dubai Multi Commodities Market
When it comes to business setup in Dubai, the first free zone that strikes your mind is the Dubai Multi Commodities Market (DMCC) free zone. Company formation in DMCC comes with benefits such as robust infrastructure, strategic location, business setup services etc. DMCC offers crypto currency licenses for the following activities:
- Distributed ledger technology services
- Proprietary trading in crypto commodities
- NFTs E-marketplace provider
- Metaverse services provider
Dubai World Trade Centre
The Dubai World Trade Centre (DWTC) is largely known to be the epicentre for events and businesses in the heart of Dubai. Apart from events, DWTC facilitates crypto currency company incorporation in Dubai. DWTC issues crypto currency licenses for investors under supervision of Securities and Commodities Authority (SCA). The crypto-related activities in DWTC are:
- Cryptocurrency exchange
- Crypto-asset custody
- Crypto-asset management
- Crypto-payment solutions
- Initial Coin Offerings (ICOs)
- Distributed ledger technology (DLT) development
- Proprietary trading in crypto-commodities
- Cryptocurrency mining
- Blockchain consultancy
Dubai Airport Free zone Authority
The Dubai Airport Free zone Authority (DAFZA) supports crypto companies by issuing a license for proprietary trading in crypto-commodities. Business setup in DAFZA permits companies to carry out trading of cryptocurrencies and other digital assets. Entrepreneurs get access to a regulated and secure environment to carry out their activities, world-class infrastructure, and tax benefits. However, getting a DAFZA crypto license is a complex process, which can be simplified through business setup consultants in Dubai.
The DAFZA license for proprietary trading in crypto-commodities permits the following crypto-related business activities:
- Crypto-commodities trading
- Crypto-wallet services
- Crypto-payment services
- Crypto-custodial services
- Crypto-asset management
RAK Digital Assets Oasis
RAK Digital Assets Oasis is the first and only free zone in the UAE dedicated for crypto-related businesses. The free zone offers a supportive environment for digital and virtual asset companies innovating in new and emerging sectors of the future such as metaverse, blockchain, gaming, NFTs, DAOs, DApp, and other Web3-related businesses. The free zone will start accepting applications from the second quarter of 2023.
Hire the Best Business Setup Consultants in Dubai, UAE
As the environment of business setup in Dubai is becoming more favourable for crypto investors, you need not think twice to take the plunge. However, you need to research about the licensing procedures and regulations before applying for a crypto currency license in Dubai, UAE. Business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can guide you in this process.
We are one of the leading providers of business setup services in Dubai with more than two decades of experience. Our qualified consultants can help you select the best free zone for starting a crypto currency business in the UAE. JBC can also help you comply with the AML regulations that are mandatory for Virtual Assets Service Providers (VASPs) in the UAE. Call us today for a consultation on business setup opportunities in Dubai, UAE.