Many investors are looking for diversified methods to develop their wealth, and the CryptoCurrency business is growing in popularity around the world. In the following years, the new digital money is likely to become more mainstream in commercial activities.
With additional Free Zones permitting enterprises to engage in crypto trading, crypto-asset handling, bitcoin trading, and associated activities, the UAE is becoming more mainstream.
Companies can trade and manage their crypto assets in the UAE with a crypto license from the Dubai Multi-Commodities Center, Dubai Airport Free Zone, and Sharjah Research Technology Innovation Park.
The Securities and Commodities Authority (SCA) and the Dubai Airport Free Zone Authority (DAFZA) have inked an agreement to enable crypto asset trading and related business operations within the Free Zone.
Companies are now permitted to trade crypto assets, cryptocurrencies, and associated business operations under the terms of the new agreement.
DAFZA is combining the issuing of Crypto-Currency Licenses with its other value-added services for international investors. DAFZA also provides a regulatory framework and flexible legislative support to ensure that commercial operations run smoothly.
The issuing of a crypto trading license in DAFZA is intended to boost bitcoin trading and the region’s broader cryptocurrency economy.
GUIDELINES TO OBTAIN CRYPTOCURRENCY IN DAFZA
Cryptocurrencies are authorized for trade in the UAE, subject to various laws, based on market capitalization, traceability, price volatility, and other factors.
In order for crypto firms to obtain a crypto license, they must:
- There must be sufficient funds to sustain the business for at least six months.
- Astringent KYC Norm must be followed.
- On request, information must be sent to the Value Added Tax, Anti-Money Laundering, and other government authorities.
- Client financial information is kept secure to protect against cyber-attacks.
- Only authorized Free Zones in Dubai are permitted to provide Crypto Currency Licenses to investors.
The DMCC Free Zone and the Dubai Authority on Commodities, Trade, and Enterprise have teamed up with the Securities and Commodities Authority (SCA) to create a regulatory framework for enterprises in the UAE that provide Crypto asset-related services.
DAFZA is constantly expanding the scope of its licenses and services in order to attract foreign investors. The worldwide business community, which is looking to start or develop its business and commercial activities in DAFZA, has had a high level of faith and trust in the free zone for over 25 years.
Cryptocurrencies and crypto assets have progressed from a stage of piqued interest to direct investment, with significant global firms accepting and investing.
In the UAE and other GCC nations, demand for cryptocurrencies and crypto-assets is expected to skyrocket in the near future. Cryptocurrencies have fueled demand for real estate investments as early adopter investors seek to diversify their holdings after becoming wealthy from the digital currency.
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