The MENA region has one of the fastest-growing crypto trading industries. As of 2023, it had at least 1,800 crypto-related businesses and companies. The United Arab Emirates (UAE) leads this list as it has been focusing on creating and maintaining a balance between innovation and regulation. The country’s commitment and investment make it a major global crypto trading hub. This makes it one of the perfect places in the world to establish a crypto business/license. Regulations have been introduced to ensure fairness and transparency.
Benefits of Starting a Crypto Business/Having a Crypto License in the UAE
Favorable Tax Environment
Corporate income tax and dividend tax are 0% in the UAE. Income from individuals’ international activities is not taxed. Additionally, there are no currency restrictions and no tax rate on imports and exports.
Lack of Customs Duties in GCC
Doing business in the UAE allows your business to enjoy no customs duties within the Gulf Cooperation Council (GCC). This will help facilitate trade and export.
Decentralized Payment Mechanism
Blockchain serves as a decentralized payment mechanism, providing advanced encryption facilities. This ensures secure cryptocurrency transactions from any location worldwide, maintaining consistent encryption standards. Furthermore, the decentralized nature adds an extra layer of security and reliability to your business transactions.
Full Repatriation
UAE crypto business owners can return 100% of profits and capital to their home country, providing investment protection and increasing investor confidence.
Steps for Starting a Crypto Business
Step 1: Choose Your Business Type
The first step you have to take is to decide on the type of crypto business you want to start. Do you want to provide trading, brokerage, or exchange services, or do you have a crypto wallet or token platform? This is for you to decide. Also, you can combine one or two of these services in your business.
Step 2: Choose Your Preferred Location
Next, determine where you want to establish your business. There are many options available, with Dubai offering numerous free zones suitable for crypto-related businesses. Alternatively, you might consider setting up in another emirate. The perfect place for your business will depend on factors such as your specific activities, company size, and required services and amenities.
Step 3: Choose a Company Name
With many crypto businesses operating in the UAE, it’s crucial to choose a distinctive name. Additionally, the UAE has specific naming criteria for businesses. Your chosen name must not contain any offensive or blasphemous language or reference to an existing company or entity.
Step 4: Prepare Your Documents
As part of the cryptocurrency business licensing process, you must compile essential documents, including a business plan, financial plan, certified founder documents, AML/CFT policies, and any other documentation required by the local regulatory authority. The legal team at Shuraa can assist you in preparing a comprehensive set of documents to facilitate a favorable licensing decision.
Step 5: Obtain Your Trade License
Acquiring a cryptocurrency license in the UAE requires following the regulations and procedures set by bodies like the Dubai Financial Services Authority (DFSA), the Securities and Commodities Authority (SCA), and the Financial Services Regulatory Authority (FSRA).
Final Words
You need a trade license and approval from the SCA or VARA to operate a crypto business in Dubai. Once you have these in place, you can start trading in the UAE.
Frequently Asked Questions
Is Crypto Trading Legal in the UAE?
Yes, crypto trading is legal in the UAE.
Is Binance allowed in the UAE?
Yes, Binanc is allowed in the UAE.
Is Coinbase working in Dubai?
Yes, Coinbase is working in Dubai.
Which Banks in the UAE Support Binance P2P?
Some of the banks that Binance P2P supports include Abu Dhabi Commercial Bank, Alexbank, Alinma Bank, Amen Bank, etc.
Does Binance Have a Full Operational License in Dubai?
Yes, Binance has a fully operational license in Dubai.
Can I Withdraw Money from Binance in the UAE?
Yes, you can.
Is there a Binance Office in Dubai?
Yes, Binance has an office in Dubai.
