Can You Get a Crypto-Business License in the UAE
The new trend in the trading business and probably the biggest trend of the century is Crypto-Currency. Like most parts of the world, UAE is also embracing the new business. The government is opening its arms to all the possibilities of this new virtual venture.
This article will shed information on how you can start a Crypto business, get a business license in Dubai/ business license in UAE, and how the government will support you.
You can get a business license in Dubai for this new trend through various agents and PRO companies in Dubai. These companies will also enable you to better understand what is legal and what is not, which is a major concern for businesses in the Gulf.
Blockchain in the UAE:
Emirates Blockchain Strategy 2021 was the first time UAE opened its arms to the Blockchain Strategy. Like most other technologies and trends, the government has now adopted it. With aims to transform the Blockchain Strategy, Dubai has some great plans. Some of them are listed below.
- Around AED 11 billion will get saved from all the manual transaction records.
- The cost of printing annual documents worth AED 398 million will get saved
- Labor work of 77 million hours each year will be avoided by digitalizing the transactions through Blockchain
Using Blockchain Strategy to become a global giant, the government has transferred half of its transactions to Blockchain platforms.
It is a huge step towards streamlining the growth of other technologies. Many serious investors will be attracted to UAE, already a global hub. There is a great chance that future technologies will be based on Crypto-currencies. So taking up Blockchain strategy, UAE is moving one step forward to the future.
PRO Services in Dubai like Global-Link provide services to investors making crypto-currency an easy investment and source of earning.
Compensations and Shortcomings of Crypto-Currency Investment to the UAE Government:
There are numerous advantages and disadvantages for the government body of the UAE. It is accepting Crypto-currency, but what are the challenges? Do the advantages overcome the challenges? Let’s get to know about it.
First, let’s see the positive side:
- Fast processing of unlimited transactions.
- Saves costs on conducting business and business transactions as the transaction fees are low.
- The anonymity of the user is ensured by transparency.
- More opportunities for individual business as the economy will get decentralized.
- Financial activity as much as each transaction can get traced. Making it reliable.
Now that we know some of the advantages let’s read about the challenges. So, we are well aware of what we are looking at.
- Only limited nations are openly accepting crypto-currency. It will limit the access of transactions for the UAE as well.
- It has high volatility. Leading to making huge governmental transactions a risk. If the value falls, it will create liability on the government.
- Non-reversible transactions
- Storing all the transactions is a pain.
How to Get a Crypto-Business License in Dubai?
PRO Service in Dubai or PRO Company in Dubai is the agent who can help attain the Crypto-Currency Business License in UAE.
Before you get to that, you need to know the government’s perspective about the issuance of business licenses in Dubai. As Dubai is only just starting to adopt the new virtual business method, it will take time for the government to set rules and regulations.
There are currently only a few free zones that allow crypto business licenses in Dubai to be issued. DMCC is a trader in Crypto-currency and provides facilities and licenses. The signing of an MOU between The Government Authority of Trading and Enterprises Dubai with Securities and Commodities Authority (SCA) is a step towards taking the world in its grasp.
DMCC is leading the development of Crypto partnerships and Digital strategies. It will help in making a cryptocurrency ecosystem in the free zone area.
Two services offered under the business license in UAE are:
- Distributed Ledger Technology:
- Proprietary trading in Crypto commodities
Process of Opening the Crypto-Business:
The process in the future may vary, as this is just the starting point. The process includes:
- For getting a business license in UAE, the investor must abide by Anti-Money Laundering and Counter-Terrorism Financing Laws.
- The investor must disclose Value added tax upon requirement by the government.
- Investors must take approval from the Securities and Commodities Authority (SCA)
Furthermore, the approval depends upon some factors such as:
- Capital availability for at least next six months
- KYC norms must get followed
- Crypto wallet must get updated with all the data
- Proper business plan and comprehensive business understanding must get shown
Being an agent and PRO Company in Dubai, Global Links has a beneficial history for investors. Global-Link has proven to be the most trustworthy PRO Service Company in Dubai that can help you get a Crypto-Business License in the UAE. You can find many other reliable services such as;