DMCC Crypto Business Setup and Activity Review

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 set up crypto companies; the virtual asset services themselves require a VARA licence.

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 set up your crypto company in DMCC, identify whether your activities require a VARA licence 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.

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.