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Want to Start a Blockchain Business in Dubai? Read this Blog Instantly!

By Sakshi Srivastava - 23 May 2022 Last Updated: 23 May 2022
Want to Start a Blockchain Business in Dubai? Read this Blog Instantly!

Table of Contents 

  1. 1. Blockchain: what is it?
  2. 2. Dubai's Blockchain Business Overview
  3. 3. How to Start a Blockchain Business in Dubai?
  4. 4. Conclusion

Dubai has been one of the most friendly destinations for blockchain technology businesses as a premier and popular business location. It is one of the few countries that has not prohibited the use of digital currencies. Around $6 billion in bitcoin transactions were recorded on the internet, making Dubai the world's most important cryptocurrency hub.?

  • The global Cryptocurrency or Blockchain market is believed to be worth billions of dollars. Although blockchain and cryptocurrencies are a relatively new notion for some business owners, they already have a lot of potential in the Dubai market.?

  • In addition, the UAE government has passed a new law known as the Digital Currency Regulatory Framework, which would oversee digital currency transactions. It also contains rules to protect investors and ensure that trading activities are transparent.?

  • Despite its youth, the cryptocurrency market in Dubai draws business owners and expats due to its high brand reputation and exposure, security provided by blockchain technology, low transaction costs, 100% business ownership, and so on.

  • Setting up a blockchain business is simple and uncomplicated if you work with a professional business setup company in Dubai.?

This Blog is for you if you're ready to dive into the blockchain world and want to take advantage of the numerous business prospects that crypto trading, owning, and swapping offer. Dhanguard will go through an overview of the blockchain industry in Dubai as well as how to launch a blockchain company in the city. So without any further ado, let's learn!

Blockchain: what is it?

Blockchain can be thought of as a low-level phrase for the sophisticated idea of cryptocurrencies. Simply put, Blockchain is a technology that refers to a system for recording information about your Bitcoin transaction, similar to a digital ledger. It's a database that's nothing like the ones you're used to. It's a distributed ledger that keeps track of decentralized money records in digital form.

When a new transaction occurs, a new block of data is created that contains the crypto transaction details, as well as the date and time of the transaction. This block is nearly impossible to change or hack because it is constructed using an algorithm. The stored blocks in blockchain technology are linked using encryption. When a block runs out of space, a new one is generated and attached to the preceding one. As a result, all of the information is kept in chronological order.

Dubai's Blockchain Business Overview

The UAE government encourages you to start a cryptocurrency or blockchain company in Dubai if you are a business owner. Digital currencies are also promoted as payment options by the UAE central bank and the Dubai Supreme Legislation Committee. With the growing interest in the cryptocurrency industry, here are some highlights that demonstrate how ideal Dubai may be for forming your first Blockchain company.

  • In Dubai, there are currently around 400 blockchain enterprises in operation. By the end of 2022, it is predicted that the number would have risen to above 1000.

  • The UAE government's recently announced Blockchain strategy 2021 places a special emphasis on overseas entrepreneurs so that they can conduct legal commerce and business in Dubai.

  • The Financial Services Regulatory Authority (FSRA) and ADGM (Abu Dhabi Global Markets) have become the major regulators to establish clear regulations and recommendations to carry out this cryptocurrency trade.

  • The Digital Currency Regulatory Framework, a new regulation aimed at preventing money laundering and protecting consumers, was recently implemented.

  • The DMCC Crypto Center, which opened in May of this year, already houses more than 100 cryptocurrency companies.

  • Finally, Dubai conducts a variety of Crypto Expos, each of which focuses on cryptography and blockchain technology.

Read More: How to Capitalize your Cryptocurrency Exchange Business

Before Starting A Blockchain Company in Dubai, Here Are Some Things You Should Know

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Skilled in Technology

Whether you're a developer, marketing, or broker, you'll need to be computer proficient before establishing a crypto firm. You must grasp the blockchain technology system to work in this industry, and every blockchain organization must have a technical team. As a crypto founder, you may be compelled to make technical claims even if you don't wish to be a crypto developer.

Appropriately approaching Investors

Though the crypto industry appears to be appealing and successful, there are several financial risks that business owners and investors must be aware of. Despite the dangers, you must approach and attract venture capital (VC) firms. The initial coin offering (ICO) method can be used to create your own money or coin. Because there are hundreds of blockchain venture capitalists out there seeking fresh crypto-business prospects, you'll want to make the best use of your public speaking talents.

Receptive to Change

The most significant and crucial thing is to be open-minded and flexible enough to adjust to new developments in the blockchain. For example, Ethereum, the second most popular blockchain technology, had not yet been invented at the time, but it today controls a sizable portion of the cryptocurrency market. You must always be ready to respond to new market trends that result in significant market shifts.

How to Start a Blockchain Business in Dubai?

Choose a suitable business name

The first step is to come up with a good business name. There are now certain guidelines to follow while deciding on a business name. Your company name should be simple and memorable, emphasizing the nature of your firm.?

When choosing a crypto business name, there are a few guidelines to keep in mind:

  • There are no religious or political associations with this name.

  • Don't use any blasphemous or harsh names.

  • Your preferred business name is still available for registration. Choose a name that is not offensive to the public.

  • Legally relevant name for the specific business activity

  • There should be no reference to a well-known institution in the name, and even an abbreviation of your name should be avoided.

Choose the Best Economic Zone for You

Selecting the right jurisdiction in Dubai is critical to the success of your cryptocurrency business. Each economic zone has its own set of advantages and disadvantages. You will benefit from no currency restrictions and full profit repatriation if you choose the Dubai Freezone area for your blockchain firm. You would be able to cater your service to any area of the UAE if you are located on the mainland of Dubai. You'll need to get a local sponsor to start a business in another country.

Getting a Crypto License

You must apply for a Crypto License from the Dubai Department of Economic Development in order to run a legal blockchain business in Dubai (DED). The following requirements must be met in order to receive a crypto license in Dubai.

  • Demonstrate a cryptocurrency business plan.

  • Collect and fill out a DED commercial license application.

  • Shareholders must submit valid passport copies.

  • Demonstrate a spotless cryptocurrency wallet.

  • For 6-12 months, capital resources and business operating actions must be apparent.

Conclusion

The operation of a cryptocurrency or blockchain business is similar to that of a financial trading business. As a result, you must comply with anti-money laundering requirements and submit your accounts for audit in order to confirm that your business is properly licensed and following the laws. The entire business establishment process would be simple and easy with the help of qualified professionals. This Blog should provide you with sufficient information to start a blockchain corporation in Dubai. For more information on other related aspects, feel free to check out our Website as well.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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