DMCC crypto license
DMCC (Dubai Multi Commodities Centre) is an attractive free economic zone in the UAE that offers great opportunities for cryptocurrency business. Obtaining a DMCC crypto license is a promising opportunity for crypto-business development in Dubai. Gofaizen & Sherle provides professional support in obtaining a DMCC cryptocurrency license in Dubai with a turnkey solution and results in a guarantee with up to 2 weeks timeframe
This is an era where digital technology is permeating every aspect of life. People are becoming more and more dependent on these technologies every year, and this is leading to changes in the workplace and the financial system.
One area that is inevitably transforming is the monetary system. Instead of relying on traditional physical money, more and more people are turning to online payments and digital currencies. For example, payment systems such as PayPal, Apple Pay, Stripe, and others give us convenience and speed when making purchases and transferring money. Among these digital currencies, cryptocurrency holds a special place. More and more people see it as an investment opportunity and seek to take advantage of its benefits.
The UAE, realizing the importance and impact of cryptocurrency, actively supports the development of this industry. The authorities have created a favorable environment for cryptocurrency businesses by providing free economic zones, such as the Dubai Multi Commodities Center (DMCC), where entrepreneurs can legally engage in cryptocurrency transactions.
In addition, the UAE is an advanced country in innovative technology, and cryptocurrency plays a key role in this progress and actively follows global advances in blockchain and cryptocurrency, with the DMCC as a leader in this area. As part of Blockchain Strategy 2021 and the launch of the Crypto Centre, DMCC is ensuring the development of the crypto business in Dubai and building the UAE’s reputation as a leading crypto hub.
By bringing innovation and state-of-the-art technology to the forefront, the UAE and DMCC are creating a favorable environment for a successful startup and development of cryptocurrency businesses in Dubai. If you are considering this prospect, contact the experts at Gofaizen & Sherle who can help you get your cryptocurrency license from DMCC and provide you with the support you need every step of the way.
The DMCC offers simple and easy online procedures for completing and submitting license documents, making the process of registering your cryptocurrency company quick and efficient. That said, given the relative newness of this area of business, it is important to proceed with caution and have a good understanding of the terms, requirements, and procedures to minimize risks and create a successful business.
Find more information about the Crypto License in DMCC Free Zone
Types of DMCC crypto licenses
To start a cryptocurrency business in Dubai, it is necessary to obtain the appropriate crypto license from the DMCC free zone (DMCC crypto license). Dubai Multi Commodities Center is the most highly reputable free zone for crypto licenses and is known to be a Crypto Hub of Dubai. There are 12 types of crypto licenses available in this free zone, which are awarded depending on your company’s line of business.
DMCC crypto licenses in Dubai can be divided into 2 categories:
Crypto licenses that do not fall under VARA (Virtual Asset Regulatory Authority) regulation
- Proprietary trading in Crypto-commodities
- Distributed Ledger Technology Services
- NFT’s E-Marketplace Provider
- Metaverse Service Provider
- Proprietary Crypto Mining
New types of crypto licenses were issued by VARA in February 2023 and are subject to its regulation under the Virtual Assets and Related Activities Regulations
- Advisory Services
- Broker-Dealer Services
- Custody Services
- Exchange Services
- Lending and Borrowing Services
- Payments and Remittances Services
- VA Management and Investment Services
Advantages of DMCC Crypto License
Distributed ledger technology services
DMCC provides enterprises with a favorable environment for the development and implementation of blockchain-based solutions. This enables companies to streamline their business processes, increase the efficiency and reliability of their operations, and improve security and transparency. DMCC acts as a partner and supports enterprises in their pursuit of innovation and the use of advanced blockchain technology.
Proprietary cryptocurrency trading
The regulated and secure environment provided by DMCC allows companies to trade efficiently and securely with access to a variety of cryptocurrency markets and the ability to engage in digital asset trading. DMCC provides the necessary infrastructure and legal support in this regard.
Tax and trading advantages
By falling under DMCC jurisdiction, companies can enjoy tax benefits such as 0% on income tax and corporate tax, as well as full repatriation of capital without restrictions. In addition, companies with a DMCC crypto license do not have to pay duties on imports or exports of goods and services, which gives companies financial flexibility and a competitive advantage in international business.
100% foreign ownership
DMCC crypto license allows companies to own 100% foreign capital without the need for a local shareholder or sponsor. This gives entrepreneurs full control over their businesses and eliminates the restrictions associated with local partner requirements.
Low cost and speed
DMCC allows companies to start with low costs, starting as low as $20,000, and a low capital requirement of about 50,000 ED. In addition, the approval process for a DMCC crypto license application in Dubai takes only 7-10 business days. This provides a cost-effective and easy start-up for the company, allowing it to enter the market quickly and take advantage of opportunities in the field.
The DMCC provides companies with access to blockchain expertise and ensures a high level of privacy and security. This enables companies to design and implement blockchain-based solutions with confidence and protect their data and transactions from risk.
Request more information about the Crypto License in DMCC Free Zone
Requirements to obtain a DMCC crypto license
- Obtain and fill out the license form from the Department of Economic Development in Dubai
- Provide all certified copies of the founders passports and Utility bills
- Provide CVs of all shareholders and directors (relevant professional experience required)
- Provide a clean cryptocurrency wallet record with no suspicious transactions
- The capital resource of the business must cover all expenses for six months
- You must register all crypto-assets with the Department of Free Financial Zones and get government approval
- Provide detailed business model description/business plan
- Comply with KYC and AML policies
- Comply with anti-money laundering regulations
- Ensure the protection of clients financial information
- Have a share capital of at least 50 000 AED (€12,750 to be submitted within 6 months after registration)
- Provide data on the structure and projected profits of the company
- Provide data on the origin of funds at the request of the regulator
Process and timeline for obtaining a DMCC crypto license
Process and timeline for obtaining a DMCC crypto license
- Preferred company name
- Passport copies from all shareholders and directors
- Utility bills from all shareholders and directors
- CVs of shareholders and directors
- A business model of the company (brief description 1-2 A4 pages)
REGISTRATION AND LICENSING PROCESS
- Determination of suitable license type
- Submission of application to DMCC
- Company registration
- License approval
- Preparation of corporate documents
CORPORATE ACCOUNT OPENING
- Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
- Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
- Initiation of the onboarding procedure simultaneously in 2-3 crypto friendly Payment Institutions
- Guiding the Client’s company through the entire process of opening an account
DMCC crypto trading Dual License
DMCC free zone companies have the option of obtaining a “dual license” on the mainland, which allows them to hold a Department of Economic Development (DED) license on the mainland in addition to the free zone license.
However, it is important to note that the DMCC dual license is presented as an “affiliate” of the free zone company under the DED (Department of Economic Development) trade license. This means that the company does not represent a separate legal entity and does not need to undergo additional registration with the Department of Economic Development. Nevertheless, this permit allows the company to conduct operations on the mainland to complement its free zone activities.
It is important to note that the DMCC dual license is only an authorization, not an independent subsidiary. Your company will remain the only one that has the right to bill, hire employees and conduct business.
A dual DMCC license will allow companies to expand their operations on the mainland, complementing their operations in the free zone, this has several advantages:
- Expanding to the mainland: The dual DMCC license allows 100% of foreign companies to expand their operations to the UAE mainland zone. This opens up new business opportunities and allows companies to increase their market reach.
- Affordable Setup Prices: Obtaining a dual DMCC license usually comes with affordable prices for setting up a business on the mainland. This is a cost-effective way to expand a company’s operations into new territories.
- Time Savings: The DMCC dual license process is usually expedited by pre-registering with the DMCC Free Zone. This helps reduce bureaucratic processes and speeds up the time it takes to start and operate a business on the mainland.
- Location Flexibility: A dual DMCC license gives companies the flexibility to choose where to operate. Companies can choose the best locations on the UAE mainland to attract customers and partners.
Opening a cryptocurrency business in the DMCC free zone
The Dubai Multi Commodities Center (DMCC) is the world’s leading free zone for business activities. DMCC is also one of only two free zones in the UAE with the right to issue a cryptocurrency.
DMCC is becoming a leader in the cryptocurrency and blockchain industry by innovating technology and signing agreements with regulatory agencies, including the Security and Commodities Authority (SCA), which allows individuals to open licenses for their cryptocurrency businesses.
Opening a company in the DMCC offers a wide range of benefits, including access to developed infrastructure, an attractive business environment, and flexible tax policies. It also gives foreign investors full ownership and control over their business without the requirement to have a local partner.
Gofaizen & Sherle is ready to assist in launching your crypto business in the DMCC-free zone for guaranteed results.
Renewal of DMCC license
To complete the DMCC crypto license renewal process, a cryptocurrency company will need to pay a renewal fee, as well as provide a signed lease agreement for office space. In addition, your company must submit an annual audit report to regulators beginning with the second license renewal.
This process is simple and cost-effective in the DMCC Free Zone. You can complete the license renewal remotely, without the need to be physically present in the UAE.
DMCC Crypto license — frequently asked questions
How do I get a crypto license in DMCC?
To obtain a crypto license in Dubai, DMCC, you need to register a company, develop a business plan, collect the necessary documents, and have a minimum share capital of 50 000 AED. After obtaining a license, you must comply with DMCC requirements and regulations.
What is the cost of a DMCC cryptocurrency license?
A minimum of 50,000 AED of share capital is required to start a cryptocurrency business. In addition, you may need additional funds to pay the DMCC license fee (20,285 AED), establishment card (1,825 AED), Emirates ID (425 AED), and other expenses, including registration fees and visa fees.
How long does it take to get a DMCC free zone crypto license?
The time to get a cryptocurrency license in Dubai DMCC is about 7-10 working days.
Why open your cryptocurrency business in the DMCC free zone?
DMCC is known as Crypto Hub, it has a prestigious status, which helps in establishing trust and attracting partners and customers and offers specialized programs and infrastructure for crypto-entrepreneurs. This support facilitates successful business startups and growth. In addition, the DMCC establishes legal rules and regulations, ensuring security and safety in the crypto-sphere.
What are the risks associated with obtaining a DMCC free zone cryptocurrency license?
The UAE government recognizes the risks associated with crypto-assets and requires high standards of transparency and risk mitigation. All crypto businesses in the UAE must develop regulations that comply with anti-money laundering and counter-terrorist financing laws, as well as international FATF standards.
What documents are required to obtain a DMCC free zone crypto license?
To obtain a DMCC crypto license, the following documents are required: a completed application form specifying the type of business; copies of passport; a detailed business plan; and a copy of the Emirates ID (if any).
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