Cryptocurrency has emerged as an irreplaceable technology, driving dynamic markets worldwide, especially in the UAE. However, crypto trading in the UAE is highly restricted. Cryptocurrency licensing in the UAE and corporate bank account openings for transferring crypto funds are regulated in certain designated zones and banks. The following are the general free zones in the UAE that allow crypto trading activities.

The Abu Dhabi Global Markets (ADGM)

which is located in Abu Dhabi, is one such free zone. In the Middle East and North Africa region, ADGM has been at the vanguard of regulating and supporting cutting-edge, technologically driven financial firms, including those involving crypto assets.

The ADGM functions as a separate legal system with its own set of rules and regulations, offering a safe and open environment for the growth of the crypto asset market. Since 2018, ADGM has been one of the first authorities in the world to adopt precise rules for dealing with crypto assets. They provide licenses for such activities as cryptocurrency exchanges, managing other people’s cryptocurrency assets, providing custody of cryptocurrency assets, purchasing, selling, and exercising rights in recognized cryptocurrency assets, and marketing cryptocurrency assets.

The Virtual Assets Regulatory Authority (VARA)

another regulatory body in Dubai, is in charge of policing and monitoring virtual assets and associated activities in all areas of Dubai outside from the Dubai International Financial Centre (DIFC). The Dubai World Trade Center Authority (DWTCA) oversees VARA’s operations.

The Dubai Multi Commodities Centre (DMCC)

a government-owned free zone in Dubai, offers a welcoming environment for companies operating in the cryptocurrency and blockchain sectors. Distributed ledger technology, proprietary trading in cryptocurrency commodities, the provision of NFT e-marketplaces, and metaverse services are just a few of the services provided by DMCC.

Dubai World Trade Centre (DWTC)

which is governed by the Securities and Commodities Authority (SCA). The DWTC license permits the following activities: cryptocurrency exchange, cryptocurrency mining, cryptocurrency asset custody, cryptocurrency asset management, cryptocurrency payment solutions, ICOs, distributed ledger technology development.

Dubai Airport Free zone Authority (DAFZA)

 which enables businesses to trade cryptocurrencies and other digital assets. The Dubai Financial Services Authority (DFSA) and other regulatory standards must be met in order to be eligible for a DAFZA cryptocurrency license.

Dubai International Financial Centre (DIFC)

It offers licenses for virtual asset exchange, virtual asset wallet provider, virtual asset custody service, virtual asset brokerage, and virtual asset management under its own regulatory framework. Businesses that operate within the DIFC must adhere to its regulatory framework, which includes its AML and KYC regulations.

It’s crucial to remember that every free zone and regulatory body in the UAE has its own unique rules and specifications for activities related to cryptocurrencies. While these free zones offer welcoming settings for cryptocurrency firms, they must nonetheless operate inside the UAE’s legal system and adhere to all applicable local rules and regulations.

Why does the selection of the right business consultants matter?

When setup a business in the UAE, the most important thing is selecting an experienced business consultant. They will ensure that your  licensing and other tasks like accounting, bookkeeping, and bank account opening are executed without delay and mistakes. This is crucial because choosing a substandard agency to save a small amount of money can lead to significant trouble. The rules and regulations are complex, and without the right knowledge of packages, you may lose a significant amount of money during renewal or liquidation, etc.

How 3A Global Corporate Services Provider Can help Your Business?

To get a crypto trading license in the UAE requires an experienced and talented pool of professionals. We have 16 years of experience in company formation  in the UAE. Feel free to contact us for expert advice.

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