The Finance World Magazine| Edition: March 2023

Cryptocurrency
How to obtain a cryptocurrency
licence in Dubai:
The Dubai Financial Services Authority
(DFSA) is responsible for regulating
and supervising the crypto industry in
the Emirate. The authority has set out
clear guidelines and requirements for
obtaining a crypto license, including
having a physical presence in Dubai and
meeting specific security and operational
standards.
To apply for a crypto license, you will
need to submit a detailed business plan
that outlines the nature of your business,
the types of crypto assets you will be
dealing with, and the measures you have in
place to secure client assets. You will also
need to provide information about your
company’s management and ownership
structure, as well as information about any
prior experience in the crypto industry.
The cost of obtaining a crypto license
in Dubai typically ranges from AED 21,500
to AED 35,000 depending on the nature
of the business and the types of crypto
assets you plan to deal with. However,
it is important to note that these costs
may increase depending on the specific
activities you plan to engage in.
In addition to the initial costs of
obtaining a license, there are also ongoing
Your crypto
business plan
should detail your
organization’s
objectives, tactics,
and the actions
you will undertake
to ensure
adherence to the
DFSA’s regulations.
fees and regulatory requirements that
you will need to comply with. These may
include annual fees, regular reporting
requirements, and regular audits to ensure
that you continue to meet the standards
set out by the DFSA.
UAE has taken “active” steps to
establish itself as a crypto hub:
The UAE has been supportive of the
crypto industry and has positioned itself
as a crypto hub, as stated by panellists
at the AB UAE Forum. The government’s
approach is praised for allowing the
growth of crypto and for being vocal
about their support for regulation, making
the industry accessible to everyone. In
last January, the UAE introduced a new
regulation and regulatory authority,
the Dubai Virtual Asset Regulation Law
and the Dubai Virtual Assets Regulatory
Authority (VARA), for virtual assets and
service providers at the federal level. The
purpose of this regulation is to oversee
the growth of the virtual asset business
environment and ensure regulation,
governance, and licensing.
The need for regulations in the crypto
market was highlighted due to the FTX
situation, which showed the importance
of regulations for building trust in the
market. The crypto market is still young
and considered to be over-sensationalized,
but time is needed for the market to
learn and grow.
60 www.thefinanceworld.com March 2023