Ever considered starting a cryptocurrency business in Dubai? Setting up your business dealing with cryptocurrency in DMCC free zone may just be the right move for you.
As time passes, the world is progressively turning to digital technologies. There has been an increase in the use of technology over the years. Therefore, it comes as no surprise that everything is easily available online or transitioning to digital.
This is also the case for currencies. Most of us, nowadays, rely on online payment methods such as Apple Pay, PayPal, etc. for our everyday needs. Similarly, cryptocurrency has slowly but surely made its mark and has inevitably transformed into a global phenomenon. More and more people are turning to invest in cryptocurrencies.
The UAE has recognized the impact cryptocurrency has made. Hence, in recent years, Dubai Multi Commodities Centre (DMCC) free zone, the government-approved authority on commodities trade and enterprise in Dubai, has entered into a Memorandum of Understanding (MoU) with Securities and Commodities Authority (SCA) to launch the DMCC Crypto Centre.
This blog will focus on everything you need to know about starting your business dealing with cryptocurrency in DMCC free zone.
What is cryptocurrency?
Cryptocurrency is a digital currency that is seen as the future when it comes to exchanging currencies. Although it follows a similar concept to digital modes of payment, it is also vastly unique to what we are used to. The reason why people are turning to invest in cryptocurrency is because many people believe that cryptocurrency has more advantages than traditional currency. The reasons include:
Cryptocurrencies are open, transparent and trackable. However, one cannot identify who is behind the money transfer. Thus, enabling individuals to have privacy.
Unlike traditional currencies, cryptocurrencies are decentralized, which means money isn’t available to everyone. Additionally, unlike traditional currency, digital ones are known to have a steady value as they are not controlled by any authorities.
The money can only be accessed by the individual and not by banks. This prevents the account from being frozen, thereby increasing control over the flow of cash.
The use of cryptocurrencies also removes the role of middlemen. This is because digital money transactions can be done independent of wire transfers or money orders, thus making it cheaper than traditional currency.
Cryptocurrencies are also recognized worldwide and the value of the currency does not vary from country to country.
Why set up your cryptocurrency business in DMCC free zone?
Dubai Multi Commodities Centre (DMCC) is the world’s flagship free zone on commodities trade and enterprise. It is also one of two free zones in the UAE that permits the issuance of cryptocurrency.
DMCC started to make its mark in this industry in 2020 when the free zone launched DigitalSugar. With this, DMCC created a strong track record for using cryptographic and distributed ledger technologies. The blockchain-enabled trading platform utilizes these methods. This helps bridge the gap between millions of rural farmers for international trading of sugar.
As of 2021, DMCC authorities have signed the initial agreement with the Security and Commodities Authority (SCA). This agreement allows individuals to obtain license for businesses that want to conduct activities related to cryptocurrency.
With crypto and blockchain technologies taking the markets by storm, there is no doubt of the enormous potential it has to transform global trade and supply chain. DMCC aims to drive the future of trade and has launched DMCC’s Crypto Centre.
DMCC’s Crypto Centre offers many opportunities for crypto entrepreneurs including co-working spaces, SMEs and a wide range of incubator and accelerator programmes. The Crypto Centre also houses all types and sizes of crypto businesses, including blockchain developing companies and more.
Fortunately, all of these are available to the entrepreneurs in DMCC’s Jumeriah Lake Towers (JLT) district.
DMCC free zone licenses related to cryptocurrency:
DMCC’s crypto centre offers bespoke licenses and a wide range of incentives to prospective businesses. DMCC free zone license is cost-effective. Considering the growth and popularity of cryptocurrency, it would easily make any company dealing with this activity highly successful.
There are two types of licenses DMCC authorities offer for cryptocurrency:
Distributed Ledger Technology Services: This activity includes providing database management solutions and ancillary services based on distributed ledger technologies such as Blockchain. Companies with this activity are not permitted to trade in or set up an exchange for currencies or cryptocurrencies or provide any financial activity services, brokerage or payment processing.
Propriety Trading in Crypto-communities: This activity includes the buying and selling of crypto-commodities developed on distributed ledger technology applications. This activity does not include acting as an exchange, providing brokerage services, financial services, banking services, payment processing or storage services.
Dual License in DMCC Free Zone:
DMCC is one of the few free zones in the UAE that offers an added advantage to entrepreneurs by allowing them to obtain dual licensing. Dual licensing allows companies to extend their businesses to mainland. This enables them to extend their reach. In order for a company to be eligible for a dual license, entrepreneurs will need to obtain both, free zone as well as mainland license.
Benefits of dual license
Allows 100% foreign-owned companies to extend operations into mainland
Affordable pricing for set up
The mainland division of a dual licence is structured as a branch of the free zone company rather than a subsidiary.
Set up a cryptocurrency business in DMCC free zone now, with Generis Global
Setting up your business related to cryptocurrency in DMCC free zone will undeniably boost and evolve your company majorly. With Generis Global, we can help you start a crypto business in the UAE and gain the DMCC free zone license at low costs.
Business registration in DMCC free zone is the ultimate opportunity for budding as well as established crypto entrepreneurs. Generis Global is one of the best business setup companies in the UAE and can help you get your company registered within a week.
Generis Global also ensures that the entire process of your company setup runs smoothly. Our expert consultants will guide you through the entire process from registering your business, regulatory requirements, understanding DMCC free zone license cost, all the way up to the process of obtaining approvals from the necessary authorities.