Crypto License

Crypto license in Dubai

Dubai cryptocurrency regulations are moving forward. Is not something from the future anymore and UAE is making steps to be the frontliners of future economic development including the crypto licensing.

You already can open a crypto license in Dubai in certain free zones. In 2022, Dubai implemented the Dubai Virtual Asset Regulation Law and established the Virtual Asset Regulatory Authority (VARA). The VARA has since issued a number of regulations, including requirements for crypto exchanges to obtain a license to operate in Dubai.

A number of leading crypto exchanges have already received their licenses from the VARA, including Binance, Coinbase, and Bybit.

In addition to the VARA, the Abu Dhabi Global Market (ADGM) also has its own regulatory framework for cryptocurrencies. The ADGM Financial Services Regulatory Authority (FSRA) has granted licenses to a number of crypto exchanges, including Gemini and Rain.

Having said that, it becomes obvious that UAE is going to become one of the global crypto centers, which will service the whole region.

Contact Emirabiz business setup advisors to find out the latest developments in crypto licensing in UAE.

Where to get crypto license in UAE

At the moment the places to set up your crypto business in UAE are:

ADGM crypto license

Abu Dhabi Global Markets is a regulated financial free zone of the UAE capital Abu Dhabi. It has established crypto asset activities regulations back in 2018. At the moment is offers a whole range of business activities related to crypto assets:

• Crypto exchange license
• Crypto asset custodian
• Buying, selling and exercising any right in accepted crypto assets
• Managing other person’s crypto assets
• Providing custody of crypto assets and making arrangements with a view to another person
• Marketing of crypto assets

DMCC crypto license

DMCC is not a regulated financial free zone, but it is still a pioneer in providing crypto licenses in Dubai. Currently DMCC offers the following types of crypto related business setups:

• Distributed ledger technology services
• Proprietary trading in crypto commodities
• NFTs E-marketplace provider
• Metaverse services provider

DWTC free zone crypto license

DWTC has announced that it will be one of the first free zones issuing crypto related licenses under supervision of Securities and Commodities Authority. The activities being offered are:

• Proprietary trading in crypto-commodities
• Distributed ledger technology services

DAFZA crypto license

Currently DAFZA offers one type of crypto licenses, which is:

• Proprietary trading in crypto-commodities

How to get UAE crypto license

The choice of licensing authority, the process of registration and the costs will totally depend on the exact business activity you are planning to undertake.

Generally, the process of registering crypto business in UAE will look as follows:

1. Identify your business activity
2. Prepare business plan
3. Apply to the registering authority where you want to be licensed
4. Meet regulatory requirements
5. Get your license

Needless to say, regulatory requirements for setting up a crypto exchange or a proprietary training firm will be different. The costs and capital requirements will have a huge difference too.

Crypto regulations in UAE

Securities and Commodities Authority (SCA) is the main governmental body that sets out rules and regulations for crypto activities in UAE. The Crypto Asset Regulations apply to most forms of crypto assets which are listed on organized markets. 

UAE Central Bank regulates stored value facilities and payment tokens such as stable coins. 

ADGM free zone has its own Guidance of Crypto Asset Activities, but it is in line with the SCA regulations.

ADGM is directly governed by the Financial Services Regulatory Authority (FSRA), which has its own Rulebooks and Guidances that has to be followed.

Crypto asset risks

UAE is acknowledging the risks associated with crypto assets. The main risks are the following:

• Money laundering
• Financing of terrorism

Any company dealing in crypto assets, needs to develop comprehensive regulations according to:

• UAE Anti Money Laundering and Combating Terrorism Financing laws
• Anti Money Laundering and Sanctions Rules and Guidance (ADGM)
• International Best Practices including FATF recommendations

It is important to meet the global standards of transparency and risk mitigation. The major principles will be:

• Risk Based Approach
• Business Risk Assessment
• KYC and Due Diligence
• Governance, Systems and Controls
• Reporting Obligations
• Record Keeping

UAE obliges every company dealing with cryptocurrencies to follow these principles and standards in order to maintain within the legal framework.

Dubai crypto license costs

*Additional costs apply: mandatory office rent, regulatory documents for companies with financial regulated activities, etc.

Contact Emirabiz now to get consultation on Dubai crypto license setup!