License to exchange cryptocurrencies in the UAE

Over the past few years, the UAE has made significant progress in the development of new technologies such as blockchain and cryptocurrencies. Blockchain Strategy 2021, a Crypto Center set up in the Dubai Multi Commodities Center (DMCC) Free Zone, are examples of the UAE’s development in terms of digital innovation. The UAE government is promoting the crypto industry and has created favorable conditions for crypto companies.

One of the main goals of the signing of the memorandum of understanding (MoU) between the DMCC and the Securities and Commodities Administration (SCA) was to develop a regulatory framework for crypto companies operating in the free zone. As a result, in 2022, DMCC has a solid foundation for the sale, issuance, listing and trading of crypto assets in accordance with SCA laws.

Types of license to carry out activities in the field of cryptocurrencies

Cryptocurrency trading license.

This activity includes the purchase and sale of own crypto-goods developed on the basis of applications of distributed ledger technology.

Distributed ledger technology services.

The Distributed Ledger Technology Services license includes the activities of providing database management solutions and ancillary services based on distributed ledger technology such as blockchain. Companies engaged in this activity are not allowed to trade or create a currency or cryptocurrency exchange or provide any financial activity, brokerage or payment processing services.

Dual license DMCC Crypto Trading.

Dual licensing allows companies to expand their business to the mainland. To do this, it will be necessary to obtain a license both in the free zone and on the mainland.

Companies that engage in operations such as crypto exchange, crypto exchange, crypto brokerage services, financial services, banking services, payment processing or crypto wallet or crypto storage services do not need to obtain a DMCC license.

Basic requirements for the company

Authorized share capital	from 50,000 dirhams (12,969 EUR)
Requirements for board members and geographical location	At least 1 shareholder (individual or legal entity). 2 director (can be both an individual and a legal entity). Having a secretary is a must.
Qualified employees	It is necessary to have in the staff of financial specialists with proven qualifications and work experience.
Minimum document requirements for applying for a license	1) An extended resume of the director, members of the board and employees; 2) Certificate of no criminal record for each of the above and proof of experience or relevant qualifications in the financial industry; 3) Organizational structure of the company; 4) Charter; 5) Detailed business plan describing the activities of the company (preferably with a detailed financial forecast for at least 5 years); 6) Internal AML/KYC procedural rules and policies and ensure the enforcement of these procedural rules; 7) Confirmation of the contribution of the authorized capital; 8) Proof of holding sufficient capital to ensure its liquidity and provide a bank guarantee.

Services offered by us within the framework of obtaining a license

LEGAL ADVICE ON THE POSSIBILITY OF OBTAINING A LICENSE, TAXATION, OPENING A BANK ACCOUNT

FULL LEGAL SUPPORT FOR COMPANY REGISTRATION

OPENING ACCOUNT IN PAYMENT SYSTEM OR BANK

FORMING A LEGAL ADDRESS

SEARCH AND HIRING EMPLOYEES

ASSISTANCE IN PREPARING DOCUMENTS FOR OBTAINING A LICENSE

COORDINATION WITH THE REGULATOR IN THE PROCESS OF CONSIDERATION OF THE APPLICATION FOR OBTAINING A LICENSE

ACCOUNTING AND LEGAL SUPPORT OF THE COMPANY

Stages of obtaining a license

First of all, it is worth deciding on the direction of your company’s activity, the expected amounts of income and the operations performed in order to correctly calculate all the nuances. From these facts will depend on the size of the initial authorized capital, the amount of the annual fee and additional costs that may arise during the activity.

STAGE 1

REGISTRATION OF A COMPANY, REGISTRATION OF A LEGAL ADDRESS, HIRE EMPLOYEES.

STAGE 2

SELECTION OF THE OPTIMAL FINANCIAL INSTITUTION FOR THE PURPOSE OF OPENING ACCOUNT FOR THE FORMATION OF AUTHORIZED CAPITAL AND OPENING SUCH ACCOUNT.

STAGE 3

PREPARATION OF DOCUMENTS AND OBTAINING A CRYPTOLICENSE.

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