Blockchain and Cryptocurrency might be new terms and concepts in business, but they are growing immensely fast and are coming under the public consciousness.
UAE is one of the countries that initially neglected the new technology. But presently, UAE evolved from its shadows and turned out to be one of the best countries for Cryptocurrency projects in the entire world.
In order to attain legal business for Cryptocurrency, you need to obtain crypto licenses in the UAE.
In this article, we are going to discuss the nitty-gritty concerning the Cryptocurrency business in the USA.
Crypto Regulatory Framework
In its efforts to strengthen the growth and expansion of the Blockchain business in the UAE, the government unfolded an initiative that 50% of Government Transactions will be conducted using Blockchain Technology.
This manifests the keenness of the UAE Government toward Crypto. So you get ample opportunity to leverage your chances of crypto business in the business hub Abu Dhabi.
The FRCA or Financial Regulatory Service Authority issued the first comprehensive guidelines on Abu Dhabi Global Market, the hub of Cryptocurrency business in the UAE.
Apart from FRCA, there are other regulatory authorities like SCA (Securities and Commodity Authority) and the DFSA (Dubai Financial Service Authority), who have provided their individual guidelines.
The ultimate objective behind laying a net of regulations is to ensure Transparency in the business.
Some Important Facts On Blockchain Business In The UAE
Here are some of the key facts on Blockchain Business in the UAE that will amaze you for sure.
- Currently, there are around 400 businesses operating in the UAE, and by the 2022 end, it is expected to touch the 1000 figure mark. Isn’t it exciting?
- UAE, especially Abu Dhabi and Dubai, leverage the existing Free Zone to encourage new investment in Blockchain business.
- The DMCC Crypto center aggressively promotes Blockchain Technology in the UAE so that the ecosystem for Blockchain business technology is created abruptly.
- Dubai offers 100% foreign ownership of the local companies to collaborate and 0% Corporate Income Tax for the next 50 years of business operations.
- Under the 6599-92 Proprietary Trading in Crypto-commodities, license holders can carry out sales of Crypto-Commodities.
How To Start Cryptocurrency Or Blockchain Business In The UAE?
There are certain steps that you need to consider while starting your Blockchain Technology business in the UAE.
Firstly you have to decide on the name of your company. When choosing the name of a business, you need to make sure that you can not use any derogatory terms for business as well as any blasphemous phrases.
Secondly, your business will come under the jurisdiction of the Dubai Free Zone. There you will enjoy Zero currency restrictions, coupled with Capital and Profit repatriation.
Cryptocurrency or Blockchain businesses are regulated in the same manner as any other financial trading in Dubai.
You, therefore, need not only to be licensed but also comply with the regulations of Anti Monitoring.
Requisites For Collection Of Cryptocurrency Or Blockchain Licence In The UAE
If a local company wants to get a license for Blockchain business, it needs to submit the following document:
- Confirmation of the Registered Address.
- Verification documents for the company name.
- Detailed Business Plan.
- All the operational expenses and the Capital resource must be visible for 6 to 12 months.
- A completely clean Crypto Wallet minus fraudulent activities or transactions.
Steps To Follow To Obtain Cryptocurrency Licence In Dubai
Step 1: Firstly, you need to download and fill up the Cryptocurrency license from the authority concerned.
Step 2: Thereafter, you need to attach the Cryptocurrency Licence from the Company and all the names of the stakeholders and then submit it.
Step 3: Complete the payments to the respective authorities wherefrom you are going to purchase Cryptocurrency for your Blockchain business.
Step 4: When all documents are checked properly, then only you are going to get your Cryptocurrency license.
Well, the process of starting a Cryptocurrency business is relatively straightforward here. One thing that you need to note is that the Cryptocurrency of the Blockchain business is regulated in much the same manner as financial Trading.
It could be construed that there is a strong going Cryptocurrency market for Cryptocurrency.
The groundwork for trading in Blockchain Technology is becoming immensely strong with the passage of time.
So make sure that you are well aware of their rules and regulations.