In the ever-evolving Web3 world, the United Arab Emirates (UAE) is the leading hub of innovation and opportunity. Its visionary policies and clear, progressive regulatory landscape have positioned the UAE as a top-tier destination for crypto entrepreneurs. If you want to start a crypto business in the country, then this article is for you.
Steps Involved in Setting Up a Crypto Business in the UAE
Define The Regulatory Business Model
The first thing for you to do is to define the regulatory business model. This means that you must consider factors such as the type of activities you plan to undertake, target market, regulatory regime, costs, and timeframes associated with company incorporation and obtaining relevant licenses. This helps maintain focus during the initial stages of building your business and enables the regulator to efficiently understand your business model, categorizing it under the desired licensed activity.
Have a Professional Regulatory Business Plan
A Regulatory Business Plan gives information about a company’s regulatory activities and commercial objectives, and the strategies to achieve them. A common mistake among founders in UAE’s crypto world is failing to have a detailed Business Plan and White Paper when registering their company or communicating with government bodies. In the UAE, these documents are important at every stage of building your business, from registering the company to obtaining necessary licenses and attracting investors. This plan should include detailed information about the company’s products and services, management structure, and target market.
Examine Regulatory Regimes
The UAE is an attractive jurisdiction for crypto founders. The country has various Virtual Assets (VA) regulatory frameworks, also known as VASP regimes, across the country. Currently, the regulatory framework within the UAE governing the provision of virtual asset services includes Federal Regulations, Financial Free Zones Regulations: DIFC and ADGM and Local Regulations in different Emirates such as Dubai.
Incorporate the Company
Once the regulatory analysis is completed, you can decide where to set up your crypto business. If the business activities are regulated and require a license from the relevant Financial/VA regulator, you must choose one of the licensing regimes in the previous step.
If the activities are not regulated, you have two options: incorporated in a mainland jurisdiction within one of the Emirates or in one of the 45+ free zones throughout the UAE.
Obtain Residency Permits for Shareholders and Managers
This step is optional, as some crypto founders may not relocate to the UAE after registering their company. However, if shareholders and managers plan to stay and reside in the UAE, they must obtain a residency permit or a residency visa. Company incorporation enables shareholders to obtain an investor visa as company owners. Additionally, if the company plans to hire staff in the UAE who are not residents, they will need to sponsor employee visas. Below are the process of obtaining UAE residency:
- Obtain an Immigration Establishment Card for the company.
- Apply for an Entry Permit/Visa Status Change (depending on whether the person is in the UAE or outside).
- Undergo a Medical Examination.
- Complete a biometrics procedure.
- Apply for the Emirates ID.
Final Words
The UAE is a crypto-friendly space. Hence, it is a good environment to set up your crypto business in the country in 2024. All the steps we looked at above will help you successfully set up your business in the UAE.
Frequently Asked Questions
What is the Least Amount you will Spend to Set up a Crypto Company in Dubai?
AED 21,500 is the least amount you need to set up a crypto company in Dubai
Is Binance allowed in the UAE?
Yes, Binance is allowed in the UAE.
Does my Business need a License to Trade Crypto in the UAE?
Yes, your business or company needs a license to trade crypto in the UAE.
Does the UAE allow Crypto?
The UAE does not restrict residents from exchanging and trading crypto.
Are UAE Banks Crypto-Friendly?
Yes, UAE banks are crypto-friendly
Can I Use Crypto Exchanges in the UAE?
Yes, you can use crypt exchanges in the UAE.
Is the First Abu Dhabi Bank Crypto-Friendly?
Yes, the First Abu Dhabi Bank is crypto-friendly
