Dubai is advancing in cryptocurrency regulations, aiming to
lead in economic development with crypto licensing. Dubai crypto licence is now available in select free zones, and the UAE is
expanding crypto legislation for more businesses. Leading exchanges, including
Binance, are entering the UAE in 2022, with Kraken also eyeing the Middle East.
Given these moves, the UAE is set to emerge as a key global crypto hub for the
region.
Obtaining UAE Crypto Licence
For initiating a crypto business in UAE, consider these
licensing locations:
ADGM License
Located in Abu Dhabi, the ADGM financial free zone has
outlined crypto regulations since 2018, offering licenses for:
- Crypto exchange
- Asset custody
- Trading & management of accepted assets
- Crypto asset marketing
DMCC License
Dubai's DMCC isn't financially regulated but pioneers in
crypto licensing, offering:
- Distributed Ledger Technology (DLT) services
- Proprietary crypto commodity trading
- NFT E-marketplace & Metaverse services
DWTC License
DWTC free zone, under the Securities and Commodities
Authority supervision, provides licenses for:
- Proprietary crypto commodity trading
- DLT services
DAFZA License
DAFZA offers a specialized license for proprietary trading
in crypto commodities.
Each zone provides unique services and licenses tailored to
various crypto business needs. For detailed assistance, engage professional
advisory services.
Acquiring UAE Crypto License: Steps S & Tips
To get a crypto license in UAE, follow these steps:
1. Identify the exact crypto activity you intend to conduct.
2. Outline your business objectives and strategies.
3. Apply to the preferred authority for registration.
4. Ensure you meet all specific requirements for your chosen
activity.
5. Complete the application process and obtain the license.
The requirements and costs vary significantly based on the
type of crypto business, e.g., a crypto exchange vs. a proprietary trading
firm.
Regulatory Framework for Cryptocurrency in UAE
The main state body that sets the rules for cryptocurrency
activities in the country is the SCA (Securities and Commodities Authority).
Cryptoasset regulations are relevant for most cryptoassets on organized
markets. Custodial assets and payment tokens such as stablecoins are regulated
by the UAE Central Bank.
The ADGM is a free zone and has its own guidelines for
cryptoasset activities and complies with the SCA rules.
The FSRA (Financial Services Regulatory Authority), which
has its own guidelines and rules, directly regulates ADGM.
Crypto Asset Risk in UAE
The UAE recognizes crypto asset-related risks:
- Money Laundering
- Terrorism Financing
Companies in the crypto sector must establish robust
regulations aligned with:
UAE Anti-Money Laundering & Combatting Terrorism
Financing laws.
ADGM's Anti Money Laundering and Sanctions Rules.
International Best Practices (e.g., FATF recommendations).
Essential principles to adhere to include:
- Risk-Based Approach
- Business Risk Assessment
- KYC & Due Diligence Procedures
- Governance, Systems, & Controls
- Reporting Obligations
- Record Keeping
Following these principles and standards is mandatory for
crypto companies in the UAE to operate legally.
Prifinance is the Best Choice for Legal Support in the Field of Cryptocurrencies
Thanks to the extensive experience and professionalism of
Prifinance, clients can obtain the necessary license for cryptocurrency
exchange, including in Dubai. They will also help you to build a reliable
business structure for cryptocurrency mining as soon as possible and more.
