The Dubai Multi Commodities Center is one of the world’s most famous free zones for entrepreneurship. It is the right place to issue cryptocurrencies, offering a DMCC crypto license. In 2023, DigitalSugar was launched, allowing for a strong track record for using crypto and distributed ledger technologies. This blockchain support has helped bridge the gap between millions of rural farmers in the international sugar trade.
In addition, DMCC management signed an initial agreement with the SCA (Commodity Security Administration). As a result, anyone wishing to carry out activities related to crypto trading can obtain the appropriate licenses. Many benefits are offered to entrepreneurs, such as coworking spaces, small and medium-sized enterprises, as well as accelerator and incubator programs.
Benefits of Obtaining a Cryptocurrency License
Securing a cryptocurrency license Dubai from DMCC brings multiple benefits:
Blockchain Innovation
DMCC fosters a conducive environment for blockchain solution development, enhancing business efficiency, reliability, and transparency.
Secure Crypto Trading
Offers a regulated setting for safe, diverse cryptocurrency market access and digital asset trading, backed by robust infrastructure and legal support.
Fiscal Perks
Enjoy 0% income and corporate tax, full capital repatriation, and duty-free trading under DMCC, boosting financial freedom and global competitiveness.
Full Foreign Ownership
Allows 100% foreign capital with no local shareholder or sponsor needed, granting entrepreneurs complete business autonomy.
Cost Efficiency and Quick Setup
Low startup costs (around $20,000) and capital requirements (approximately 50,000 AED), with a swift 7-10 day cryptocurrency license Dubai approval process.
Blockchain Security
Access to expert blockchain security, ensuring data protection and transactional integrity.
DMCC Crypto License Categories
This free zone offers 12 different licenses classified into two main categories based on the supervision of the VARA (Virtual Asset Regulatory Authority).
Licenses not under VARA (Virtual Asset Regulatory Authority)
- Proprietary Crypto-commodities Trading.
- Distributed Ledger Technology Services.
- NFT’s E-Marketplace Provision.
- Metaverse Services.
- Crypto Mining.
VARA-regulated licenses (introduced February 2023)
- Advisory.
- Broker-Dealer.
- Custody.
- Exchange.
- Lending and Borrowing.
- Payments and Remittances.
- VA Management and Investment.
Acquiring Cryptocurrency Licenses in Dubai and Malta
To obtain a crypto license Dubai, you must meet many criteria. When applying, you need to provide detailed documentation, prove financial stability by having six months of capital, and, no less important, ensure KYC and AML compliance.
For example, obtaining a cryptocurrency license in Malta requires significant authorized capital, a physical office, and strict management. It is necessary to appoint qualified directors and an AML and KYC officer.
Of course, both regions require a procedure for protecting clients’ assets in compliance with the regulatory framework, regardless of whether it concerns a DMCC license in Dubai or Malta.
DMCC Compliance and Requirements
- Fill out the Department of Economic Development’s DMCC crypto license form.
- Submit certified copies of founders’ passports and utility bills.
- Provide CVs highlighting shareholders’ and directors’ relevant experience.
- Ensure a clean cryptocurrency wallet history.
- Maintain a six-month capital reserve for business expenses.
- Register crypto-assets with the Department of Free Financial Zones for approval.
- Draft a detailed business model or plan.
- Adhere to KYC, AML policies, and anti-money laundering regulations.
- Protect client financial data.
- Hold a minimum share capital of 50,000 AED.
- Present company structure, profit projections, and fund origin data when requested.
Quick Guide to Acquiring a DMCC License
Preparation Phase
- Compile necessary documents:
- Preferred company name.
- Passport and utility bill copies of shareholders and directors.
- CVs of shareholders and directors.
- Brief business model (1-2 A4 pages).
Registration and Licensing
- Select the appropriate DMCC license type.
- Submit the application to DMCC.
- Register a company and await cryptocurrency license Dubai approval.
- Prepare corporate documents.
Account Opening
- Evaluate Banks/EMIs based on risk profiles and AML policies.
- Gather required documents (fund flow, wealth sources, account purpose, key partners, company website, etc.).
- Initiate onboarding in 2-3 crypto-friendly institutions.
- Assist the client’s company throughout the account opening process.
Taxation
Taxation Advantages of a Crypto License Dubai:
UAE offers enticing tax benefits for crypto businesses, with no federal income or corporate tax for trading or salary payment in cryptocurrency.
Despite the introduction of VAT at 5% in 2018, crypto companies can still enjoy a zero-tax setup, though regular transactions are VAT applicable.
For specific tax exemption queries, specialized consultation is recommended to navigate the nuances.
Business Expansion with Dual DMCC License
Opting for a dual DMCC license allows free zone companies to seamlessly extend their cryptocurrency operations to the UAE mainland without forming a separate legal entity. This strategic move, more of an affiliation under the DED than an independent subsidiary, simplifies the expansion process by leveraging the DMCC free zone’s established framework. Key benefits include:
- Leverage 100% foreign ownership to tap into the UAE’s mainland market.
- Benefit from reasonable setup costs, making mainland expansion financially viable.
- Enjoy streamlined procedures and reduced bureaucracy, accelerating the commencement of business operations.
- Gain the freedom to choose prime mainland locations, optimizing customer and partner engagement.
This dual approach broadens market reach and encapsulates the essence of a license for cryptocurrency UAE.
FAQ
Is it possible to obtain a crypto license in Dubai remotely?
This is indeed possible. You can significantly save time and resources by filling out and submitting the necessary documents through an online platform.
Are there any risks when obtaining a cryptocurrency license in the DMCC?
This free zone maintains high standards in terms of transparency and risk management. Cryptocurrency businesses must comply with strict rules. The list of conditions includes anti-money laundering and terrorist financing laws and compliance with international FATF standards to minimize the risks associated with crypto assets.
How long does obtaining a crypto license in the DMCC free zone usually take?
It usually takes about 7-10 business days, ensuring quick crypto market entry.
How much will it cost to start a crypto business in the DMCC?
First of all, pay attention to the authorized capital, which should be AED 50,000. Additional costs include a license fee of AED 20,285, a registration card (AED 1,825), and an Emirates ID card (AED 425). In addition, there are registration and visa fees, etc.
