DMCC crypto license for cryptocurrency business will be one of the businesses that will get more popular among investors. Currently, there are many types of companies and businesses that are blooming in several advanced countries, such as the UAE. And as time passes, the cryptocurrency business will be one of the businesses that will get more popular among investors. If you’re interested in starting this type of business in DMCC, you’ll require a DMCC crypto license.
In this article, you’ll learn everything that you should know about this type of license in this free zone. Besides, here you can also get some useful information about the current situation of the cryptocurrency industry in Dubai. On the other hand, we’ll also help you understand the process to start operating a business of this type. Let’s observe:
- A brief overview of the cryptocurrency industry in Dubai and the UAE.
- Why should you consider setting up this kind of business in a free zone like DMCC?
- Where else can investors like you start a cryptocurrency business in the UAE?
- What are the key elements that you must consider to set up a cryptocurrency business?
- What is a cryptocurrency license and how can you apply for it in DMCC?
- How many other licenses related to cryptocurrency business can you find available in DMCC?
- What other things should know about the cryptocurrency license in the DMCC free zone?
- How can Connectfz help you set up your cryptocurrency business in a UAE free zone?
A brief overview of the cryptocurrency industry in Dubai and the UAE.
This kind of business is getting more and more popular not only in the UAE but also in many other countries. And the main reason for this is that many investors from everywhere are looking forward to increasing their wealth effortlessly. And that’s exactly why this business is the ideal one for those investors.
Economists from all around the world expect this new digital currency to grow into the mainstream of business operations. But that’s something that will probably happen in the coming years while this business gets more popular. And it’ll surely become a more famous business as the use of technology increases globally.
Nonetheless, many free zones in the UAE are already into the cryptocurrency business and they’re expecting more investors to come. In fact, there’s a special free zone in Dubai that has already launched a cryptocurrency-related license; the DMCC crypto license. But it’s possible to find a license like this in other free zones in the UAE.
What is exactly cryptocurrency?
This is a digital currency that people can have regardless of the country in which they are. In other words, it’s a currency without borders and used globally through the Internet. The concept of this type of currency is similar to the online payment methods that we already know about. However, it has turned into a profitable business for many investors.
As a matter of fact, there are many reasons why investors are starting cryptocurrency businesses in countries like the UAE. For example, this currency is open, transparent, and easy to track. But it also provides privacy since it’s impossible to identify the person behind the money transfer. Besides, this currency isn’t like other ones because it’s decentralized.
Furthermore, individuals can have access to this currency while no bank can, which means that the accounts cannot be controlled. In addition, since no authority can control this currency, it has a steady value and it doesn’t vary from country to country. And you can find even more information about this matter with a specialist.
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Why should you consider setting up this kind of business in a free zone like DMCC?
DMCC is also known as Dubai Multi Commodities Centre, and it’s one of the few locations that have embraced cryptocurrencies. Actually, this free zone started working with this business in 2020 and launched several initiatives, such as the DMCC’s Crypto Centre. And it also launched Digital Sugar, creating a strong track record for using cryptographic and distributed ledger technologies.
With these methods, it’s possible to create a gap between rural farmers for international trading of sugar. But there are other recent news, like the initial agreement between DMCC authorities and SCA (Security and Commodities Authority). Due to this agreement, investors like you can obtain the necessary licenses for operating a cryptocurrency business.
To summarize, in this free zone you’ll have the opportunity to build a stable and profitable business. And this is possible due to the crypto and blockchain technologies that DMCC provides.
Where else can investors like you start a cryptocurrency business in the UAE?
Besides Dubai Multi Commodities Centre (DMCC), you can also start your cryptocurrency business in other popular UAE free zones. For example, you can choose DAFZA (Dubai Airport Free Zone Authority) as your ideal business location for your company. In fact, this is another popular business hub in Dubai that you cannot ignore if you’re looking for other places.
On the other hand, ADGM (Abu Dhabi Global Market) is another famous business location in which investors can set up. This location has a robust legal system and regulations for cryptocurrency companies, which also helps them to boost their activities.
And there’s another place that provides crypto licenses to investors who desire to set up businesses of this type. Sharjah Research Technology & Innovation is also a favorable free zone in which you can start your cryptocurrency company. But in case you do not know which free zone to choose, you should get help from a business consultant.
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What are the key elements that you must consider to set up a cryptocurrency business?
There are some key requirements that you must meet when establishing your business and applying for a DMCC crypto license. For instance, you need to keep in mind that you’ll only receive your license after the authorities consider some factors. And some of them are traceability, market capitalization, price volatility, and many more.
Besides, it is vital that your company adheres to a strict KYC (Know Your Customer) Norm. Furthermore, your business must have enough capital in order to operate successfully for at least six months. On the other hand, it’s essential to fulfill some requests from government authorities regarding the disclosure to VAT, anti-money laundering, etc.
And it is also mandatory to show compliance to the Anti-Money Laundering and Counter-Terrorism Financing Laws of the country. Lastly, there is one more requirement, which is related to safeguarding against cyber security and secured information of clients’ financial information.
What is a cryptocurrency license and how can you apply for it in DMCC?
This is a special type of license that you can obtain for setting up a cryptocurrency business in freezone. With this license in your hands, you’ll be able to legally carry out several activities related to the cryptocurrency business. However, it is important to apply for a commercial license before applying for this one.
And you can find the cryptocurrency license available in the free zones that we previously mentioned. But as we also said before, the most popular free zone is DMCC when it comes to this business. And in order to obtain this license in this free zone, you must follow these steps:
- Firstly, submit your cryptocurrency license application form to the concerned authorities.
- Then, you must submit some general documents of the shareholders, such as passport copies and photographs.
- After that, you need to make and submit a brief business plan and also the share capital to operate the company successfully.
- The next step will be obtaining a suitable office space that meets the requirements. You must also prepare the tenancy agreement during this procedure.
- And lastly, you need to make the required payment for the DMCC crypto license and office rent.
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How many other licenses related to cryptocurrency business can you find available in DMCC?
In Dubai Multi Commodities Centre, you can find two main licenses related to the DMCC crypto license. And these are some of the incentives that DMCC’s Crypto Centre offers to prospective businesses. Besides, these licenses are known for being quite affordable, which means they are perfect cost-effective solutions. Let’s take a look at those crypto-related licenses:
- Property Trading in Crypto-communities: this license covers activities like buying and selling crypto-commodities that are developed on distributed ledger technology applications. However, it does not cover activities like acting as an exchange or providing brokerage services. And it doesn’t cover financial services, banking services, storage services, or payment processing neither.
- Distributed Ledger Technology Services: on the other hand, you can also get this license to cover other cryptocurrency-related activities. For example, you can provide database management solutions and also ancillary services based on distributed ledger technologies like Blockchain. Nonetheless, it does not allow you to trade in or set up an exchange for currencies or any cryptocurrencies. Furthermore, it does not cover activities like providing financial services, brokerage, or payment processing.
You should also know about the VAT registration process for all companies and businesses that operate in the UAE territory.
What other things should know about the cryptocurrency license in the DMCC free zone?
Some other elements that you should know about the DMCC crypto license are some important requirements. Let’s take a look at them briefly:
- You must apply for a commercial license first. The DED (Department of Economic Development) is the authority that will issue this license for you.
- It is essential to submit some general documents, such as valid copies of your business members’ passports.
- Also, you should be aware that deceitful activities are not allowed in this free zone. Therefore, it is a requirement to have clean records.
- And your information has to be secured in a crypto wallet.
- You must incorporate your crypto assets with certain UAE financial free zone departments.
- Additionally, your operational expenses and capital resources should be visible for more than 6 months and up to 12 months.
How can Connectfz help you set up your cryptocurrency business in a UAE free zone?
If you found an ideal location like DMCC that offers the DMCC crypto license, you should start building your business. But it is always recommendable to get professional help from a specialist before getting started with a promising business. And that is the reason why Connectfz is your best option to set up your business efficiently and effortlessly.
Our team can offer you the tools, resources, and facilities that you need to establish your business in no time. Besides, we can also provide consultancy services that you require to understand this business and its rules in the country. Furthermore, you can request any of the packages that we offer to obtain the licenses and visas that you need.
On the other hand, there’s a wide range of business services that we also provide for improving our clients’ companies. For example, hiring new employees can be easier by requesting our recruitment services or staff outsourcing services. However, you can also find and request other useful services, including payroll, banking, consultancy, and many other ones.
Would you like to contact Connectfz to obtain more tips and information about the business setup process of a cryptocurrency business in a UAE free zone? If you have any questions, call us on +97143316688. You can email us at firstname.lastname@example.org, and you will talk to one of our representatives who will answer your questions.