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.

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.

FAQ

How much does a crypto license in Dubai cost?

The Central Bank of the UAE has not licensed cryptocurrencies or recognized them as legal tenders but there are no barriers holding and trading crypto assets on crypto exchange platforms.

How can you open a cryptocurrency exchange in the UAE?

You need to obtain a crypto licence in the UAE in order to operate a cryptocurrency exchange as a legal business, storing  digital assets, and making a buy/sell market. The licence for cryptocurrency in Dubai can only be issued by the DMCC, after a general commercial licence has been granted by the Department of Economic Development in Dubai allowing your company to trade in digital currencies. The cost of this varies between different free zones, and can range from 3,000 euro up to 10,000 euro.

Do I need a licence to trade crypto in Dubai?

Any company that can conduct business activities is considered as a commercial entity and must have a commercial licence issued by the Emirate that it is going to be based in. In our case, we specialise in Dubai. If you have any questions you should be talking to our team of professional consultants because on top of all of the other requirements, if you are going to conduct cryptocurrency trading in any state of UAE, you need to obtain a national trade licence from the central authorities to legalise the business.

How do I start a crypto company in Dubai?

The basic requirements of the Dubai crypto regulations for a cryptocurrency trading licence in the UAE are:

• A commercial licence issued by Dubai’s Department of Economic Development
• Current copies of all the partners, UBOs and managers of the business
• Evidence of a crypto wallet record that has no history of fraudulent activities