One of the most popular cryptocurrency license in Dubai is DMCC. It is a free economic zone, thanks to which you will have excellent prospects for expanding your crypto business internationally. This area is closely monitoring the implementation of innovative technologies that enable comfortable engaging in activities with digital coins.
Crypto activities in this area
Many investors increasingly trust virtual currency rather than fiat money, which is becoming a more reliable investment. Therefore, it becomes clear why capital is invested in this particular activity area. Given the popularity of digital coins, many payment systems provide services for conducting crypto transactions. Having understood the importance of virtual currencies, the UAE authorities actively support this activity and provide all possible support. Therefore, the UAE has created one of the most favorable environments for this activity. And one of the most promising areas is DMCC. This crypto center uses blockchain, providing reliable financial transaction protection.
Types of permits
You must obtain a permit to carry out legal activities with digital coins in the DMCC zone. This center issues some of the most prestigious global electronic coin market appointments. And there are 12 types of such permits, depending on the chosen type of activity. These types are divided into 2 categories.
Permits that VARA does not control
VARA is the Office for the Control of Digital Assets, and the following types of crypto activities do not fall under its influence:
- purchase/sale of crypto assets;
- provision of services using blockchain technology;
- providing an NFT platform for trading operations;
- metaverse services;
- crypto mining.
By choosing to engage in one of the above activities, your company will not be controlled by VARA.
Permits controlled by VARA
There are new types of permits for crypto activities, which were issued by VARA. They will be controlled by this department. We list these types of activities:
- provision of consultations;
- broker and dealer services;
- depository services;
- currency exchange;
- provision of credits and loans;
- making payments and transfers;
- management and investment.
Thus, there is a clear division of types of permits, and before applying, you must clearly understand what kind of activity you plan to engage in. Moreover, it will depend on whether you fall under the control of VARA or not.
DMCC Requirements
Several demands must be met to obtain a permit successfully. It all starts with submitting a form to the Department. Along with it, passports and papers confirming the registration of the management team are provided. Your starting capital must be designed to operate for at least six months. This capital must be registered with the Department and permission obtained from the authorities.
In addition, you will need to develop a detailed business project for your financial activities (describe the structure and prospects of profit) and provide for an AML (anti-money laundering) and KYC (know your customer) program with the appointment of responsible managers. It is also necessary to ensure reliable protection of your customers’ personal information and have appropriate software. The authorized capital must be approximately 130,000 euros or more, deposited into the account by 6 months after the company is registered. The regulator may also request a document confirming the legal origin of your capital.
Permitting process and duration of each stage
To receive a permit, people must go through the steps listed below.
Collection of papers (1-2 weeks)
At this stage, you must give your organization a name. You will also need to provide ID cards for management personnel and proof of registration (for example, utility bills). Managers must submit a resume and give a brief business model of their activities.
Business registration and permitting (1 month)
You select the type of activity for the permit and submit an application to the DMCC along with a package of papers. If all documents are in order, your firm will be registered, and you can receive a permit.
Opening a bank account (1-1.5 months)
It is necessary to analyze several banks for reliability and degree of risks associated with AML. Also, study the bank demands for your company. Having provided all the documents required by the bank representative, you must ensure registration support throughout the entire account opening period. Having fulfilled all the regulator demands, the company will be able to register a company in no more than 2.5-3 months and receive permission for crypto activities in this area.
