How to Get Cryptocurrency License in Dubai | UAE

Considering the growing use of digital currencies, a crypto license in Dubai provides businesses with access to a market worth billions. A cryptocurrency license enables you to trade cryptocurrencies, issue digital assets, operate exchanges, manage crypto assets, and provide brokerage services in Dubai and the wider UAE.

A crypto business in Dubai enjoys 100% foreign ownership, 0% corporate tax rates, and huge government support. VARA is the primary authority that regulates and issues licenses to virtual asset companies in Dubai (excluding DIFC, which has its own authority).

Quick summary:

• Crypto license in UAE legalizes dealing in virtual assets.
• VARA, DIFC, ADGM, DMCC, DWTC, and IFZA offer the license.
• Companies need to follow strict KYC, AML, and CFT policies.
• License approval may take 3-4 weeks.
• Physical office space is mostly required.

Dubai offers a safe and secure environment for both crypto businesses and investors. If you plan to obtain a UAE crypto license, it is important to understand the available cryptocurrency license types, the authorities with whom you can apply, the required documents, and the applicable crypto regulations. This comprehensive guide by Dubiz will guide you through it all.

What is a Crypto License in Dubai?

A crypto license in Dubai is a legal permit that allows businesses to offer virtual asset services. With this license, companies can trade, manage, and hold a variety of cryptocurrencies such as Bitcoin, Ethereum, Tether, and Solana.

The license serves as proof that the company follows UAE regulations, complies with KYC and AML policies, and can be trusted by investors and customers. Both mainland Dubai and leading free zones like DAFZA, DWTC, IFZA, and DIFC issue crypto licenses to businesses in Dubai.

Fun fact: In the UAE, there are more than 500,000 daily crypto traders, making it one of the most active digital markets globally!

Activities Permitted under a Crypto License in Dubai

With a crypto license in Dubai, you can engage in the following digital asset activities:

• Proprietary trading: This activity refers to trading crypto on your own account. Which means you buy and sell cryptocurrencies for your own benefit and not on behalf of clients.
• Cryptocurrency exchange: With a crypto exchange license in Dubai, you can operate your own platform where traders buy and sell various cryptocurrencies. Transactions can take place between virtual assets and fiat currencies, or between multiple virtual assets.
• Advisory services: Advisory services include providing expert recommendations to clients related to actions and transactions involving cryptocurrencies. You do not trade but consult businesses and clients on crypto strategies and best practices.
• Broker-dealer services: This includes acting as an intermediary in crypto trades. You can arrange the purchase and sale of crypto assets between two entities. You may enter transactions on behalf of clients as well.
• Crypto loan services: This activity includes crypto lending and borrowing services. You operate a platform where virtual assets are borrowed or lent between parties on a contract basis.
• Management and investment services: Under this activity, you can handle client crypto portfolios for investment purposes or general asset management. Portfolios may include diverse digital assets.
• Transfer and settlement services: These services include handling the movement of crypto assets from one party to another. You can help with payment processing or transaction settlement in a legal and secure manner.
• Virtual asset custody services: Custody services include the safekeeping of crypto assets for or on behalf of clients. This includes providing secure storage solutions, such as wallets, where clients can safely store their digital assets.

If you desire to conduct any of such activities as discussed above, a crypto license in UAE is a mandatory requirement.

How to Get a Crypto License in Dubai: Step-by-Step Guide

To get a crypto license in Dubai, you must secure approval from the SCA, VARA, or the respective authority after meeting capital, AML/CFT, KYC, and other requirements.

Here are the detailed steps to obtain a crypto license in Dubai:

Step 1 – Finalize business activity:

First, you must decide on your crypto business activities in Dubai. You can choose from a wide range of services, such as crypto wallet management, operating a cryptocurrency exchange platform, providing advisory and consultancy services, and more.

Please note that no virtual asset activity is exempt from regulatory supervision, and each requires a crypto license in Dubai.

Step 2 – Pick the right jurisdiction:

Next, you must decide whether you want to establish your company in the Dubai Mainland or in a free zone.

• Mainland (VARA): In the mainland, crypto businesses can enjoy the freedom to operate across the UAE after obtaining registration from VARA.
• Free Zones: Free zones such as DIFC, DMCC, DWTC, and IFZA offer benefits including 100% foreign ownership and full repatriation of profits to crypto businesses.

Your jurisdiction choice should depend on your business needs and objectives.

Step 3 – Choose the company name and its legal structure:

Then, you must decide on a name that will distinguish your crypto company from others. The trade name must comply with UAE naming rules: being innovative, unique, and respectful of moral and regulatory standards. Additionally, you need to choose the legal structure for your crypto business (LLC, sole proprietorship, etc.).

Step 4 – Meet legal requirements:

For Dubai crypto company registration, you must meet the regulations established by regulatory bodies like SCA (Securities and Commodities Authority), VARA (Virtual Assets Regulatory Authority), FSRA (Financial Services Regulatory Authority), or DFSA (Dubai Financial Services Authority).

Some of the key regulatory requirements include:

• Minimum capital requirements: For example, DMCC offers setups from AED 50,000 onwards. VARA may require up to AED 5 million.
• AML and KYC procedures: Companies must implement strong security and compliance frameworks for KYC, AML, and CFT procedures.
• Clean background checks: Shareholders and key personnel should have no criminal background.
• Internal process: The Company should employ proper risk management and employee training systems.

Step 5 – Lease office space:

You need to rent a physical office space for your crypto business, depending on whether you are starting in a free zone or on the mainland. On the mainland, a physical office is a mandatory requirement. You may need to provide legal address proof and an Ejari contract for a crypto license.

In free zones, crypto businesses may have the option to operate through shared office or virtual office addresses.

Step 6 – Prepare the necessary documents:

To obtain your crypto license, you must take care of paperwork and keep it ready. This includes your detailed business plan, proof of address, certificate of incorporation, AML/CFT policies, identity documents for shareholders and directors, etc.

Step 7 – Apply for the crypto license:

An application for a crypto license must be made to VARA for the mainland or to the relevant free zone authority. You must fill out the license application form and submit it along with the necessary documents and fees. This process may include interviews and background checks as well.

Step 8 – Authority review and license approval:

Once you have submitted your license application, the regulatory authority will review it and check if you meet the necessary requirements. Upon approval, you will receive your Dubai cryptocurrency license.

Step 9 – Open a corporate bank account:

A corporate bank account is essential for all crypto businesses in Dubai. It helps in managing all crypto business transactions. In Dubai, you have the option of both domestic and international banks where you can apply for a corporate bank account. Banks usually ask for your license, company documents, and details of the owner.

Note: It takes 3-4 weeks to get a crypto license in Dubai, based on the completeness of your documents and formalities. To ensure correct and timely processing, we recommend contacting our business setup consultants in Dubai.

Benefits of a Cryptocurrency License in Dubai

There are many advantages of obtaining a crypto license in Dubai, including:

1. Growing market demand: A crypto business in Dubai opens doors to lucrative opportunities, thanks to the city’s leading position in technological innovation and the increasing demand for digital currency.
2. 100% repatriation: Full profits and capital can be returned to your home country without any restrictions.
3. 100% foreign ownership: Foreign entrepreneurs can fully own their crypto company in Dubai without involving any local partner.
4. Pegged currency: The UAE Dirham is pegged against the US Dollar, offering currency stability and easy calculations.
5. Double taxation relief: The UAE’s double taxation treaties with over 100 countries reduce the tax burden on international transactions.
6. Favourable tax environment: Dubai offers major corporate tax incentives along with zero personal income tax, allowing businesses to retain profits and reinvest them. Moreover, there are no customs duties within the GCC.
7. International credibility: There are no restrictions on international transactions. In addition, there are no import or export taxes.
8. Global recognition: Positioned as a leading hub for business and finance, Dubai offers opportunities to establish strong corporate relations, attract major investors, and expand networks globally.

Dubai’s overall dedication to innovation and technology creates a supportive ecosystem for blockchain and crypto startups to grow faster.

Where Can you Get a Crypto License in Dubai?

You can obtain a crypto license in Dubai Mainland or in free zones. VARA crypto license (also called VASP license) is issued to crypto companies in the Dubai mainland and free zones, other than DIFC and ADGM.

Here are the types of Dubai crypto licenses based on the jurisdiction you choose:

Mainland Crypto License

To obtain a crypto license in the Dubai mainland, you must apply through the Virtual Assets Regulatory Authority (VARA). A mainland crypto business can operate in a range of virtual asset services such as exchange services, brokerage, advisory, custody, and others.

In the mainland, having a physical office space is mandatory. Additionally, the business must follow strict AML, KYC, and regulatory standards set by VARA.

DWTC Crypto License

DWTC (Dubai World Trade Centre) is a free zone focused on innovative sectors involving virtual assets, blockchain, and cryptocurrencies. This free zone is one of the pioneers in offering crypto licenses in Dubai in close coordination with VARA. DWTC is home to major global players such as Binance.

Key details:

• Businesses must secure a VASP license from VARA and an operational license from DWTC to conduct virtual asset activities within the DWTC free zone.
• The allowed legal structures for crypto companies include FZCO, FZE, or a branch of a UAE-licensed company.
• DWTC offers two types of licenses: crypto trading licenses and distributed ledger technology licenses.
• Activities include financial advisory services, management of crypto assets, brokerage activities, and other VARA-regulated virtual asset services.

DMCC Crypto License

DMCC (Dubai Multi Commodities Centre) free zone offers brilliant Web3 and blockchain-based crypto ecosystems. With a DMCC crypto license, businesses can offer a range of crypto-related services.

Key details:

• Crypto businesses in DMCC are regulated by VARA.
• Permitted activities include crypto software development, crypto management, crypto trade, and crypto consulting, including other forms of crypto services.
• Crypto businesses in DMCC can access modern office solutions and shared workspaces.

DMCC offers access to accelerator programs (such as Crypto Centre, Brinc, and TDeFi), which provide crypto startups with mentorship, market strategies, and partnership opportunities.

DAFZA Crypto License

DAFZA (Dubai Airport Free Zone Authority) is a leading free zone located adjacent to Dubai International Airport. It highly supports the trading of cryptocurrency assets. Its flexible legislative environment facilitates smooth and compliant crypto operations.

The Securities and Commodities Authority (SCA), in coordination with DAFZA, oversees the offering, issuance, listing, trading, and other financial activities related to crypto assets within DAFZA. The agreement between the two authorities was especially made to support the growth of cryptocurrency activities.

DIFC Cryptocurrency License

DIFC (Dubai International Financial Centre) is the region’s leading hub for firms offering digital asset and crypto services. Companies that want to offer financial services in the crypto space in and from DIFC must obtain the appropriate license from the Dubai Financial Services Authority (DFSA).

The free zone permits a wide range of virtual asset services, including platforms for crypto trading in Dubai, secure storage of cryptocurrencies, custody services for digital assets, facilitating asset trading, and managing digital assets for clients.

IFZA Cryptocurrency License

IFZA (International Free Zone Authority) offers one of the fastest and most affordable crypto licensing options in Dubai, in collaboration with the SCA. To obtain a crypto license here, you must comply with the regulations and specifications set by the IFZA zone authority.

With IFZA’s crypto license in Dubai, you can engage in commercial activities involving crypto assets, including offering exchange and storage services.

ADGM Cryptocurrency License

ADGM (Abu Dhabi Global Market) is the world’s first jurisdiction to establish a comprehensive regulatory framework for crypto trading. The crypto license in ADGM is regulated by the Financial Services Regulatory Authority (FSRA).

ADGM licenses enable the storage, buying, selling, and management of crypto assets and securities, including services for third parties. The free zone also offers:

• Strong regulatory support
• Access to a global fintech ecosystem
• Extensive networking opportunities with international financial hubs

Note: Each zone has its own requirements, conditions, and opportunities linked to the cryptocurrency license. Contact Dubiz Business Setup for complete guidance and to explore your options further.

Eligibility for Crypto Business in Dubai

The following are the conditions for starting and running a crypto business in Dubai:

Minimum capital requirements:

The minimum capital required to start a crypto company in Dubai depends on the jurisdiction and the type of license. Examples:

• VARA Crypto License: Minimum paid-up capital typically ranges from AED 100,000 to AED 500,000, depending on the scope of services.
• ADGM: Capital requirements start from USD 250,000 (AED 918,000), depending on the category of activities.
• IFZA: No minimum share capital is imposed. Only a capital declaration is required.
• DMCC: Starts at around AED 50,000.

Utmost security and protection:

Companies must employ modern encryption technology, multi-factor authentication, and other methods to prevent data leakage or any sort of hacking, misuse, or loss of crypto assets.

KYC and AML/CFT compliance:

Companies must have a clear policy for Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT) to prevent fraud or illicit activities. This includes:

• Registering and identifying customers by verifying identities
• Collecting documents such as identity proof
• Conducting proper background checks
• Monitoring and reporting suspicious transactions to authorities
• Following local and international regulatory standards
• Keeping records of transactions for several years

Regular audit compliance:

Regular audits and compliance reviews by regulatory agencies like VARA are conducted to ensure that companies adhere to all regulations and requirements. If issues are discovered, penalties such as fines, restrictions on activities, or even license revocation may be imposed.

Internal policies and procedures:

Companies need to develop internal policies and procedures for handling transactions, managing risks, ensuring compliance, and training employees.

Accurate and timely reporting:

Companies must keep transparent records of financial reports, operational data, and other information, providing them to authorities upon request. This commitment ensures transparency of cryptocurrency transactions.

Passing background checks:

Key personnel and shareholders must maintain clear track records free of any financial crime history. They must undergo background checks to confirm this.

Documents Needed for a Crypto License in Dubai

You will need the following general documents to obtain a crypto license in Dubai:

• Business plan
• Passport copies
• Proof of address for the Company
• Certificate of incorporation
• Memorandum of Association (MOA)
• Board resolution
• Bank reference letter
• Compliance with KYC and AML Policies
• Trade name certificate
• Police clearance certificate
• AML/CFT policy document

Note: Additional documents may be needed for your crypto business setup in Dubai, depending on your business needs and location. Our experts at Dubiz business setup can help you identify the accurate documents.

Cryptocurrency License Cost in Dubai

The total cost of crypto business setup in DWTC, Dubai, can range from AED 44,500* to AED 99,300*, including:

• Average Dubai crypto license cost of AED 25,000*
• Dubai crypto company registration fee of AED 2000*
• Establishment card fee of AED 2,300*
• Various other expenses, including visa costs (for the number of visas applied), office space charges, etc.

Cost of obtaining initial NOC from VARA can be around AED 50,000*

Please note that the costs are subject to changes and may also vary depending on the selected economic zone and type of crypto license (crypto exchange license cost, crypto trading license cost, etc). Furthermore, certain categories of Dubai crypto licenses may necessitate maintaining a minimum amount of capital in your business bank account.

Our Dubiz experts can provide you with the exact costing details. Please reach out to them for more information.

Crypto Regulatory Bodies in Dubai for Businesses

The following are the important Dubai regulatory authorities associated with crypto businesses:

1. VARA (Virtual Asset Regulatory Authority): VARA is responsible for regulating and supervising all cryptocurrency-related businesses in Dubai. All types of crypto businesses comply with its regulations and oversight.
2. Securities and Commodities Authority (SCA): SCA is the primary governmental body responsible for establishing rules and regulations governing crypto activities in the UAE.
3. UAE Central Bank: It regulates stored value funds and payment tokens, including stablecoins.
4. Financial Services Regulatory Authority (FSRA): FSRA governs the ADGM zone with its own rules and guidelines.
5. Dubai Financial Services Authority (DFSA): All firms providing or seeking to provide financial services related to cryptocurrency in or from DIFC must obtain a license from the DFSA.

Taxation for Crypto Businesses in Dubai

Do crypto businesses in Dubai pay taxes? Like any other business, tax rules also apply to crypto businesses in Dubai as determined by the Federal Tax Authority (FTA). However, the UAE is extremely tax-friendly, which is why it attracts investors from around the world.

• 0% Personal Income Tax: If you trade or invest in crypto as an individual, you pay no tax on your gains.
• Corporate Tax: A rate of 9% applies to annual net profit that exceeds AED 375,000. However, companies registered in free zones may qualify for 0% corporate tax on qualifying income, subject to meeting specific conditions.
• Value Added Tax (VAT): The standard VAT rate in the UAE is 5%. Most crypto transactions are exempt from VAT.

To check whether your crypto company in Dubai is exempt from tax, talk to a tax expert at Dubiz.

Get your Crypto License in Dubai

Crypto and forex businesses are the fastest growing sectors in Dubai. You can unlock opportunities and earn a lot through financial market of Dubai by getting a crypto license.

However, the process of starting a crypto company in Dubai can be a little complicated. You must take care of all the compliances and requirements diligently. Only then will you be able to obtain your crypto license in Dubai successfully.

How Does Dubiz Help with a Crypto License in Dubai?

Dubiz simplifies the process of obtaining a crypto license in UAE for entrepreneurs. From selecting the right jurisdiction to ensuring regulatory compliance, obtaining the license, securing the necessary permits, and completing Dubai crypto company registration, everything is handled by experts with precision and accuracy.

Here’s how we can help you:

• Advice on jurisdiction selection
• Complete crypto licensing assistance
• Visa processing for investors, employees, and family members
• Fast corporate bank account setup for crypto operations
• Office address registration
• Ongoing legal compliance with AML, CFT, and KYC policies
• Finance, accounting, and tax consulting

Get your crypto license in Dubai today.

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

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