Everything Investors must Know about Obtaining a DMCC Crypto License

Everything Investors Must Know About Obtaining a DMCC Crypto License

The strides made by the UAE in the emerging technologies sector such as blockchain and cryptocurrency are astonishing.  Two striking examples of the leapfrogs made by the UAE in terms of the innovation in emerging tech are the recently unveiled Blockchain Strategy 2021 and the Crypto Centre launched by Dubai Multi Commodities Centre (DMCC) free zone. At a time when the government is supporting the crypto sector, we can easily assume that the landscape of business setup in Dubai, UAE is conducive for crypto companies.

The Crypto Centre by DMCC allows investors to set up a crypto-based company within the free zone. DMCC has developed adequate infrastructure, robust regulations and facilities to support the formation of crypto businesses in Dubai. However, before jumping into the water, the investors must be familiar with the conditions, requirements & procedures of setting up a crypto business in the DMCC free zone. Here is a list of everything the investors must know about registering a crypt company with the DMCC. Keep reading.

Types of Crypto Licenses in Dubai Multi Commodities Centre

For setting up a cryptocurrency business, you need to obtain a crypto license issued by the DMCC Free Zone Authority. DMCC currently issues two crypto licenses based on the nature of the business activities. The two crypto licenses issued by DMCC in Dubai are:

1. Crypto Trading License

A Crypto trading license is issued to companies that conduct proprietary trading in Crypto commodities.  The activities under this type of DMCC Crypto license involve the buying and selling of crypto commodities developed on distributed ledger technology applications. DMCC will not issue the license to companies engaged in activities such as a crypto exchange, crypto brokerage services, financial services, banking services, payment processing or storage services.

You can obtain a crypto license in DMCC only after prior approval from the free zone management. The DMCC Authority has designed the proprietary trading in Crypto commodities license as a standalone license, and it can’t be conducted with other activities under the same company. The issuance of this type of crypto license in DMCC is subject to a minimum share capital requirement of AED 50,000. Business setup consultants in Dubai can help you simplify the process and obtain the license as fast as possible.

2. Distributed Ledger Technology Services

The Distributed Ledger Technology Services license includes activities such as providing database management solutions and ancillary services based on distributed ledger technologies, such as blockchain. Any company that perform these activities is not allowed to trade in or set up an exchange for currencies or cryptocurrencies or provide any financial activity services, brokerage or payment processing.

Crypto investors must, however, note that the issuance of this license is subject to prior approval from the DMCC management. The license also involves a minimum capital requirement of AED 50,000. Company formation consultants can help you file the application to obtain a DMCC crypto license.

Setting up a Business in DMCC Crypto Centre

Investors who obtain a crypto license can set up their offices in DMCC’s newly launched Crypto Centre in Dubai. Launched in partnership with CV Labs, the DMCC Crypto Centre aims to promote business growth, collaboration, and integrity throughout the global blockchain community. DMCC’s Crypto Centre offers a wide range of cryptocurrency services in Dubai to support investors, entrepreneurs, and pioneers through its highly developed ecosystem operating in Jumeirah Lakes Towers (JLT). The DMCC Crypto Centre offers Open Spaces, Shared Spaces and Private Offices for investors who are interested in establishing a company in crypto company in Dubai.

Renting Office Spaces in DMCC Crypto Centre

A free zone license in Dubai comes with access to co-working spaces, Flexi desks or office spaces. You can rent one of the office space options depending upon the nature of the business activity, staff strength, and budget for setting up a business in Dubai. The DMCC Crypto Centre mainly offers the office space options such as a Co-working Desk, Dedicated Desk, and Private Office. All these office space options in DMCC come with benefits such as,

  • 24/7 access
  • Access to the CV Labs Ecosystem & Community
  • Access to office infrastructure
  • Free high-speed public WIFI
  • Access to Crypto Café and Lounge
  • Access to Events and Meetups
  • Discounted meeting room rental

Steps for Obtaining a Crypto Currency License in DMCC

The following steps are to be followed to obtain a Cryptocurrency license in DMCC:

  • Select an activity
  • Choose the right legal structure
  • Chose a company name
  • Submit the application to DMCC (business setup consultants in Dubai will do this for you)
  • Submit all mandatory documents of shareholders
  • Present a brief business plan along with share capital to run the company
  • Select an ideal office space to provide by the DMCC Crypt Centre in Dubai
  • Make payments and obtain the license

Regulations & Compliance Requirements for Crypto Firms in Dubai

The DMCC has signed a Memorandum of Understanding (MoU) with the Securities and Commodities Authority (SCA) to establish a regulatory framework for crypto businesses operating in the free zone. As a result, the DMCC has a robust framework for offering, issuance, listing, and trading of crypto assets in line with the regulations of SCA. The companies that set up a crypto business in DMCC are required to abide by the following compliance requirements:

  • Proof of capital to run the company for at least six months successfully
  • Adherence to stringent KYC norms
  • Companies must comply with the UAE’s Anti-Money Laundering and Counter-Terrorism Financing Law (AML-CFT)
  • Disclosure of Ultimate Beneficial Ownership (UBO)

Get a DMCC Crypto License through Jitendra Business Consultants

The overwhelming buzz created by blockchain and cryptocurrencies attracts a good number of investors into Dubai. The landscape of business setup in Dubai is perfect for starting a crypto company as the government offers good regulatory support. However, the investors may require the expert assistance of experienced consultants to navigate the process of business setup in DMCC due to the complex nature of the crypto activities. Hiring the best business setup consultants in Dubai, such as Jitendra Business Consultants (JBC), will help you to incorporate a company without any hassle.

JBC can guide you through all the relevant requirements of company formation in DMCC, such as drafting the documents, selecting the proper legal structure, obtaining approvals, applying for visas, opening a corporate bank account etc. Most importantly, we can help you easily sail through challenging compliance requirements such as UBO, AML-CFT, VAT, Audit, accounting and Economic Substance Regulations (ESR). Since we provide all business setup services in Dubai under one roof, obtaining a DMCC crypto licence will be easier for you.