The UAE government has taken major steps in every sector of the economy to cope with modern technological advances. This is not the case with blockchain and cryptocurrency. The entire world is moving toward a digital revolution, and one of the first steps is the adoption of online currencies and transactions. The United Arab Emirates has recognised the value of cryptocurrency and has embraced blockchain technology as a great tool for expanding business.
Dubai is one of the world's most important crypto centers. The Dubai Multi Commodities Center (DMCC), a well-known Freezone, has been in the forefront of supporting crypto enterprises and has been hard at work developing a crypto ecosystem that caters to this industry. Furthermore, the authority has been working hard to establish itself as the world's premier commodities trade center. Crypto firms now have access to the DMCC license, which allows them to buy and sell digital currencies and tokenized assets.
If you're thinking of starting your first bitcoin business in Dubai, the DMCC Freezone is the place to go. Thus in today's blog, Dhanguard will extensively discuss how to get your own Crypto License in the DMCC. so without any further ado, let's Learn!?
For the sixth year in a row, DMCC has been named "Global Free Zone Of The Year," a record. Two significant instances of why DMCC's crypto business is booming are that they just revealed their Blockchain Strategy 2021 and built the Crypto Trade Center in May of this year.?
Blockchain technology in 2021 will place a specific emphasis on international entrepreneurs, allowing them to conduct lawful and orderly commerce and business.?
It also aims to convert 50% of government transactions to a blockchain network.?
They believe it can aid in the transformation and optimization of corporate processes such as supply chain management, payment transactions, and commodity tokenizations.
The Crypto Trade Center facilitates the establishment of crypto firms and businesses by providing a regulatory environment, a large pool of industry talent, and access to crypto resources and capital to UAE investors and overseas entrepreneurs.?
It serves as a central center for the creation and deployment of crypto and blockchain-based applications. It already has over 20,000 businesses that offer, issue, and trade crypto assets.
DMCC began its crypto journey in 2020 by releasing DIgital Sugar, which set a record by combining cryptography and digital ledger technologies.?
The DMCC and SCA inked a preliminary agreement in 2021. (Security & Commodities Authority). Individuals can use this agreement to apply for a DMCC crypto trading license for their business.
DMCC Cryptocurrency License Types
You must obtain a trade license for your cryptocurrency operation, just like any other business in Dubai. The DMCC is the sole entity that may grant a cryptocurrency license, and they are currently approving two types of licenses based on the features of the crypto firm. Companies who are lawfully registered with the DMCC and have a proven track record of trading, investing, or developing blockchain technology will be granted the DMCC Crypto license.
Companies can supply database administration services as well as distributed ledger technology such as blockchain under this sort of license.?
This license does not apply to companies who trade cryptocurrencies directly or provide cryptocurrency exchange services.?
Furthermore, you will not be granted this license if your organization provides any financial services for the crypto industry. For example, a crypto trade license requires a minimum capital of AED 50,000.
It allows organizations to engage in proprietary trading in crypto communities. The license allows you to engage in activities such as buying and selling commodities using digital ledger technology applications.?
If your business is involved in crypto brokerage, crypto exchange, banking, financial services, or storage services, DMCC will not grant you this license.?
Only after receiving clearance from Freezone management will you be eligible for the license. It's worth noting that this is a stand-alone license, which means you can run other businesses from the same location. Also, make sure you have at least AED 50,000 in capital.
To obtain any of the above mentioned crypto licenses, you must follow a few simple and quick steps-
Choose a crypto activity that corresponds to your company's objectives.
There are several legal structures available in Dubai, including a sole proprietorship, an LLC Company (Limited Liability Company), and a DED-approved one-person company. In accordance with the legal framework, you must select your ideal legal structure.
Choose an appropriate trade name that is not tied to any political name, does not offend any religious values, is still accessible for registration, does not allude to any well-known organization, and is, most importantly, relevant to your business activity.
The crypto registration form must be submitted to the DMCC authority next.
Submit all shareholder paperwork, including a copy of their passports, pictures, and a detailed business plan with the bare minimum of investment.
Choose the appropriate office space provided by the DMCC Crypto center based on your business needs.
Complete the payments for the crypto license and office rent to the authorities that will provide the license after you have submitted all of the needed paperwork.
If you're looking for the greatest cryptocurrency business setup services in Dubai, Dhanguard is the place to go because they're the best at cryptocurrency trading. Dhanguard is a major Company Formation Company in Dubai, offering services such as business setup, offshore company formation, and business support (trade licenses, visas, legal translation, trademark registration, company liquidation, and finding local sponsors).?
If you are a newcomer to the crypto-trading industry, our knowledgeable business consulting team can help you obtain a cryptocurrency license in Dubai, UAE. Our experts are well-versed with license-granting organizations such as DED, DMCC, and other similar organizations.
Thus we hope the information regarding the Crypto License in DMCC was helpful to you. For more information on other related aspects, feel free to check out our website as well.
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