GBO Corporate Services can assist you to set up a Cryptocurrency Exchange License in Dubai
You have to properly set up your crypto exchange in Dubai connected to a bank from the beginning, so that you will be able to let your customers transact in digital assets through a local bank account.
If you are looking to set up a relationship with a local bank and your Dubai-based cryptocurrency exchange, you should be getting advice from the consultants here at GBO, who have experience and knowledge in this complex field.
Feel free to contact a GBO professional representative for your Crypto regulation in Dubai needs.
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Necessary banking requirements before launching a crypto exchange in Dubai
Companies engaged in cryptocurrency transactions, including consultants, Dubai-resident offices and specialist data service providers, are regulated by the Dubai authority and are subject to monitoring. Different free zones in Dubai also have their own specific monitoring agencies. Inside the Dubai World Trade Center (DWTC), the relationship of cryptocurrency exchanges and banks are regulated by the VARA (Virtual Assets Regulatory Authority). As well, in the Dubai International Financial Center (DIFC), an exchange must be able to demonstrate a minimum of five years of legal operations in the field of cryptocurrencies in another country.
It is necessary for a cryptocurrency platform to partner with a local bank based in the UAE to give them the ability to trade virtual assets in the UAE currency through their local bank accounts.
In Dubai, investors in cryptocurrency can only conduct transactions in cryptocurrencies through a bank or other third-party service providers based outside of the UAE. This can lead to high fees as well as poor exchange rates. There are likely to be longer settlement lead times as well as the liability for cryptocurrency licence tax in Dubai .
Dubai has become one of the leading centres for cryptocurrency and digital currency trading. Now, investors will be able to conduct their deals in virtual assets efficiently and transparently through a UAE-regulated crypto exchange that can convert between AED and cryptocurrency through banks regulated by the UAE central banking authority.
How do I start a crypto company in Dubai?
Here are some of the requirements your company must meet to start a cryptocurrency exchange venture:
- In the UAE, financial free zones must be specifically geared for cryptocurrency investments
- Ensure that your capital can be released and is sufficient to cover operating expenses for approximately six months and up to a full year’s operations
- Install best-in-class cyber security protocols that will guarantee data safety for all operational transactions related to encryption
- To qualify for a cryptocurrency exchange licence in the UAE you will need to submit valid copies of the passports of all investors, ultimate beneficial owners (UBOs), employees and stakeholders
Note: cryptocurrencies are not recognised as legal tender by the UAE Central Bank.
GBO is an official agent of the IFZA free zone in Dubai with experience in the cryptocurrency license requirements for a Dubai company. Dubai attracts many businesses from all over the world and many of them are looking for the supervision and guidance that GBO can provide in skilled consultation and advisory services, from our team of expert qualified professionals.
With our help, you will be able to incorporate companies directly through the governmental system and also be able to open the required bank accounts and other services. Opening the bank account that can deal in cryptocurrencies requires specific paperwork, so getting it right up-front is particularly important. With us acting on your behalf, you will have a jumpstart over other companies.
Opening a bank account for a cryptocurrency exchange in Dubai
The process of opening a bank account associated with a cryptocurrency exchange in Dubai is complex. It is necessary to interact directly with the local authorities, including having to liaise with various officials from the IFZA to step through incorporation of your company in the IFZA Free Zone, licence issue, registering for membership benefits and the required residency visa packages for business owners and employees.
The IFZA cryptocurrency licence falls inside the category of a commercial licence and allows for transactions in digital or virtual currency that are secured by blockchain with distributed ledger technology applications.
Get in touch with a GBO professional today.
Contact a GBO professional to begin your cryptocurrency business today