With Bitcoin hitting new record highs, cryptocurrency investments are once again in the spotlight. The allure is clear—an investment of USD 100 in Bitcoin a decade ago could now be worth over USD 50 million. As other cryptocurrencies have followed similar upward trends, many investors continue to reap substantial returns from newly launched coins.

As the UAE emerges as a leading hub for cryptocurrency trading, regulatory measures have been put in place to ensure fairness and transparency. If you’re considering starting a business in this dynamic field, here’s what you need to know before getting started.

Understanding Cryptocurrency Regulations in the UAE

The MENA region is rapidly expanding its crypto trading sector, with over 1,800 companies employing nearly 9,000 individuals as of 2023. The UAE is at the forefront of this growth, combining innovation with regulation to foster a secure and stable market.

In 2022, Dubai established the Virtual Asset Regulatory Authority (VARA) to oversee digital assets exclusively. VARA is tasked with regulating the provision and sale of virtual currencies, defining their legal status, and outlining how these assets should be managed, controlled, and transferred.

VARA has implemented a comprehensive set of guidelines that cover various aspects of the digital asset market, including custody, brokerage, exchange services, and more. This pioneering independent regulator has attracted numerous crypto businesses to Dubai, making the emirate a vibrant and active virtual currency hub.

Prominent names in the crypto industry, such as Binance and Laser Digital, now operate in the UAE under VARA’s supervision, with many more anticipated to join in the coming year.

Additionally, the UAE’s Securities and Commodities Authority (SCA) regulates cryptocurrency trading more broadly. The SCA has issued several regulations requiring anyone conducting crypto-related activities onshore in the UAE to obtain the appropriate license. This includes providing virtual asset platforms, exchange and brokerage services, virtual asset wallet services, and virtual token trading.

Steps to Start a Crypto Business in the UAE

Starting a crypto business in the UAE involves several key steps, each crucial to ensuring compliance and success. Engaging with a local expert like Brightlink Consulting can help streamline this process.

Step 1: Define Your Business Activity

Determine the type of crypto business you want to establish—whether it’s trading, brokerage, exchange services, or managing a wallet or token platform. Brightlink Consulting can assist you in selecting the most suitable business activities.

Step 2: Select a Location

Choose where you want to set up your business. Dubai offers various free zones that are ideal for crypto-related enterprises, but other emirates also have options. Your choice will depend on factors such as your business activities, company size, and required services.

Step 3: Choose a Company Name

Pick a unique name for your business that adheres to UAE naming regulations. The name must not contain offensive or inappropriate language and should not duplicate existing business names.

Step 4: Prepare Documentation

Compile all necessary documents for submission, including your completed application form, passport copies, visa details, and a lease agreement or business plan if required. Brightlink Consulting will guide you through this process.

Step 5: Obtain Your Trade License

Submit your application with the help of Brightlink Consulting, who will coordinate with relevant regulators and government bodies. You’ll need a trade license and approval from either the SCA or VARA to operate your crypto business in Dubai.

Where to Get a Cryptocurrency License in Dubai

Several finance-focused free zones in the UAE cater specifically to digital asset businesses, offering benefits like no currency restrictions and the ability to repatriate capital and profits.

Popular Free Zones Include:

Dubai Multi-Commodities Centre (DMCC): Supports a range of crypto-related activities, including trading and consultancy, and aims to be Dubai’s leading blockchain hub.
Dubai Airport Free Zone Authority (DAFZA): Under SCA regulation, DAFZA is ideal for businesses involved in cryptocurrency activities with its direct links to international airports.
Dubai International Finance Centre (DIFC): Operates under its own regulatory framework, the Crypto Token Regime, issuing licenses for trading, digital wallets, and asset management.
Abu Dhabi Global Market (ADGM): Regulates cryptocurrency activities through its Financial Services Regulatory Authority (FSRA), offering a comprehensive framework and guidance for expanding crypto operations across the UAE.

Given the changing nature of packages and offers, it’s advisable to work with a registered company formation agent. Brightlink Consulting can provide up-to-date information on the best options available.

About Brightlink Consulting

The UAE presents a wealth of opportunities for cryptocurrency trading businesses, but understanding the industry, its regulations, and the necessary permits is crucial.

Brightlink Consulting specializes in guiding you through the process of establishing a cryptocurrency business. From trade name registration and license applications to visa and compliance support, our team is here to assist you every step of the way.

If you’re ready to launch your cryptocurrency business in the UAE, Brightlink Consulting is your ideal partner. Contact us today to learn more about getting started.