How much does a crypto license in the UAE cost?

 

You can rely on GBO to assist you through the whole process when you are looking to set up a crypto exchange with a license from UAE. We have the knowledge and experience to take you through the complete process, including setting up the proper corporate infrastructure for your new UAE cryptocurrency exchange, filing all the required documentation, and obtaining a Dubai cryptocurrency exchange license.

 

There are no restrictions on buying, selling or holding digital assets or preventing foreign investors from opening a crypto company in the UAE.

According to current law in the UAE passed at the end of February, 2022 known as the Virtual Assets Regulation Law (VAL), a regulatory body, the Virtual Assets Regulatory Authority (VARA),  governs trading in the cryptocurrency and digital assets market in the country.

Regulation of the sale of virtual assets and tokens falls under this law. As well, the authority to issue a cryptocurrency licence in the UAE and regulate digital asset or cryptocurrency service providers can be granted to individual free zones inside Dubai.

We will help you obtain a crypto license in UAE- contact us for prices

    Getting a cryptocurrency trading licence in the UAE

    The UAE has become a leading player in the global cryptocurrency market, both for players and for service providers.

    Part of the attraction of the UAR is the growth of BaaS (Banking as a service) that support blockchain technology necessary for cryptocurrency trading. All of the  popular digital currencies like Bitcoin, Litecoin, and Ethereum can be bought, stored in e-wallets and traded between themselves as well as swapped for fiat currencies and vice-versa.

    The UAE’s particular advantages for investors are that it levies zero tax on cryptocurrency trading profits and sets no minimum fees that cryptocurrency exchanges can charge. These exemptions include tax on the profit of companies that have set up in a free zone such as the Dubai International Financial Centre or the International Free Zone Authority IFZA in Dubai.

     

    How to open a crypto company in the UAE

    The processes of setting up a company that can act as a cryptocurrency exchange are similar to the establishment of any limited liability company LLC in a UAE free zone like the International Free Zone Authority (IFZA). Our team of specialists at GBO are licenced to act on your behalf to perform all of the necessary steps as your agents. There are standard procedures that require you to provide detailed documentation of your personal identity as an executive or owner of the new company.

    Once you have registered a company in IFZA, your next step must be to create a physical location that acts as your registered office, either in owned or leased premises or in a virtual office. The proof of residence, together with the corporate licence, will be required by the bank in which you must open a company account.

    As long as all of the above steps have been taken properly, you can expect a licence to be given within two to three weeks, and you can then start providing your services as a cryptocurrency exchange.

    FAQ

    What is the purpose of a cryptocurrency licence in the UAE?

    Citizens and residents of the UAE are allowed to hold and trade cryptocurrencies on their own behalf. However, they are not allowed to act as agents or brokers, exchanging crypto assets on behalf of third parties, or to swap crypto to crypto, crypto to fiat or fiat to crypto. As well, a private individual cannot transfer the proceeds of crypto transactions to third parties through their bank account.

    The only way a company can act as an agent or broker in the crypto exchange market is by obtaining an authorised cryptocurrency licence in the UAE.

     

    Is crypto tax free in the UAE? 

    There are no taxes or levies on cryptocurrency transactions. As well, profits made on transactions by corporations registered in a free zone in Dubai or other UAE Emirates are also entirely free of tax.

     

    How much does a crypto licence in the UAE cost?

    Each step in the process of setting up a company that is allowed to trade cryptocurrencies has its own cost. The individual costs will depend on the choices that you make. The most important options are:

    Mainland or free zone operation: Free zone companies can only conduct business with companies registered in a free zone or are outside of the UAE. The advantage of a mainland company licence is that the company can conduct business with both UAE businesses and foreign businesses. This makes mainland company registration more expensive than in all free zones.

    Location: You should be discussing this with our consultants before you decide which free zone you decide to register the company, because cost is not the only consideration. Each free zone sets its own cost for applications for licenses. Many free zones have restrictions and limitations of the kinds of business that can be conducted with their license.

     

    Typically, the charge by a free zone for its cryptocurrency license in the UAE can be somewhere between €9,000 and €15,000 according to the type of service your company will be providing.

    About the Author: Gilad Oren

    With over 25 years of experience, I have cultivated a career marked by entrepreneurial spirit and deep financial expertise, particularly in finance and online marketing. My professional journey began in the private banking and investment sectors, where I sharpened my skills for many years before making a significant pivot. I ventured into entrepreneurship by founding an Electronic Money Institution (EMI) and later incorporated GBO International Financial Services.   At GBO, we have established ourselves as a comprehensive provider of global corporate services, including company formation, banking assistance, and licensing for gaming and crypto sectors, alongside merchant account consultancy and digital public relations. My career is a testament to combining industry knowledge with entrepreneurial zeal to create impactful solutions in the financial and online marketing landscapes.   Let's connect in LinkedIn: https://www.linkedin.com/in/gilad-oren-326231220/

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