Each free trade zone has its own purpose and setting up a Dubai cryptocurrency exchange in one of these zones must be done according to the regulations of the United Arab Emirates as a whole, and according to the specific rules and regulations for Dubai crypto exchanges in the zone. For example, inside the DIFC, a Dubai cryptocurrency exchange is regulated by the Dubai Financial Services Authority (DFSA). It is the independent regulator of financial services conducted from or in the Dubai International Finance Center.
Regulations for all Dubai Cryptocurrency Exchanges in the United Arab Emirates
- The FSRA regulates cryptocurrency exchanges in the UAE. Its main task is to prevent money laundering and financing of terrorism. Other authorities in the UAE that regulate Dubai crypto exchanges include the Dubai Financial Services Authority (DFSA) and the Securities and Commodities Authority (SCA).
- In the Dubai Airport Free Zone Authority (DAFZA), the Dubai crypto exchange license is issued by the Securities and Commodities Authority (SCA). The DAFZA Dubai crypto license permits the Dubai crypto exchange to swap fiat for cryptocurrencies, exchange cryptocurrencies, and offer wallet storage of assets, both in fiat and cryptocurrency. The exchange is allowed to operate as a classic cryptocurrency exchange, and generates its revenue from fees on trades on behalf of its customers, as well as services like wallets.
If you are looking to set up a partnership between your own Dubai-based crypto exchange company and a local bank, you should be talking to the experts here at GBO, who have the knowledge and experience needed in this complex field. When you have set up your crypto exchange dubai connected to bank properly, you will be able to let your customers transact in virtual asset investments through a local bank account.
It is necessary for a cryptocurrency platform to partner with a local bank based in the UAE to give them the ability to trade virtual assets in the UAE currency through their local bank accounts.
In Dubai, investors in cryptocurrency are required to make use of banks or other third-party service providers based outside of the UAE to transact their trades. This can mean poor exchange rates and high fees, with longer settlement lead times as well as liability for cryptocurrency license tax in Dubai .
The UAE is becoming a global centre for crypto and virtual assets trading, because investors will are now able to conduct transactions in virtual assets efficiently and transparently through a UAE-regulated crypto exchange that can convert AED-to-crypto and crypto-to-AED via banks regulated by the UAE central bank.
How do I start a crypto company in Dubai?
- Dubai has recently introduced the Dubai Virtual Asset Regulation Law, together with the Virtual Asset Regulatory Authority (Vara). Their purpose is to provide international standards that will protect investors in the virtual asset industry.
- Dubai also has an independent authority, linked to the Dubai World Trade Centre Authority, that regulates the sector. Its reach includes cryptocurrencies and non-fungible tokens in free zones like the Dubai International Financial Centre.
- Note: cryptocurrencies are not recognised as legal tender by the UAE Central Bank.
Dubai attracts many business entrepreneurs from around the world and for those wanting to set up a crypto trading company, Dubai has the right infrastructure . If you are looking to join the flow of businesses coming to Dubai to join this growing market, then you may encounter many challenges.
Here at GBO, we can provide skilled consultation and advisory services, from our team of expert qualified professionals . We are an official agent of the IFZA free zone in Dubai with experience in the cryptocurrency license in Dubai company requirements. We can incorporate companies as an agent directly through the governmental system.
We are also able to open bank accounts and offer other services. This is particularly important because opening a bank account that can deal in cryptocurrencies requires a considerable amount of paperwork. With us acting on your behalf, you will have a jumpstart over other companies.