Why should a crypto organization get a permit in Dubai?
The UAE has been chosen by a vast number of crypto organizations from around the world to obtain a crypto license in Dubai. The UAE has been known for its financial stability and loyalty to the blockchain. Dubai is one of the main epicenters of the crypto industry, where there is an atmosphere of reliability and transparency in the requirements for trading.
What license can be obtained?
The issuance of permits to firms is carried out by the autonomous financial center DMCC. This separate economic organization issues two types of permits:
License for selling and purchasing virtual assets created based on distributed list technology. Such a permit will be obtained by an organization that plans to deal exclusively with virtual currency trading without providing other crypto services, such as transactions, coin exchange, brokerage services, and the provision of a wallet for storing coins.
License to provide only blockchain services related to crypto transactions. An organization that has received such a permit can manage the database, conduct transactions, and provide storage. Still, the company cannot buy or sell virtual currency.
Thus, the obtained permit has a clear functional distinction, which is very convenient for companies that decide to engage in one type of financial activity in the field of crypto business.
Explore the Top 5 Benefits of this jurisdiction
We have identified the 5 most important reasons why your organization should obtain a permit to work in this industry:
- Application of the fintech sphere. Many financial services are provided using innovative technologies (blockchain, robotics, artificial intelligence, etc.). Financial institutions must keep up with technological advances.
- The organization has the right to own 100% of its assets without involving local companies. It is a big plus because only some firms would like to distribute some part (conditionally share) of their financial assets in local organizations.
- Having a permit, the firm will not have to pay corporate and income taxes, import and export taxes, and double taxation is eliminated. And the value-added rate is only 5%.
- There are no requirements or financial restrictions on transactions related to the transfer of capital and dividends.
- Confidentiality is respected when conducting transactions, so there is no need to fear that the amount and number of your transactions will be known, as well as who carried them out.
Given all these positive reasons, it is not for nothing that this jurisdiction is considered the #1 financial sector in the world with the most favorable economic conditions for doing business. And all this activity related to virtual currency is carried out entirely legally. The loyalty conditions and banking stability of the UAE attract many organizations to get a permit in Dubai. In addition, the UAE government is committed to making blockchain more widespread.
In addition to financial advantages, there are positive aspects associated with legislation. Firms engaged in activities in the UAE conduct business within the law. Therefore, you can conduct business calmly and not worry about fraudulent transactions from other companies since certain authorities control all activities.
On the part of the state, there is a “Securities Organization” (SCA), which regulates business based on the “Decision on the Control of Crypto Activity.” And the Central Bank follows the “Payment Systems Ordinance,” which refers to the issuance of a license, and the “Payment Services Ordinance,” which controls transactions related to a virtual currency with fiat properties for making payments.
From the financial management side (FSRA and DFSA), the business is controlled by several Regulations aimed at activities with digital assets.
The “Virtual Assets Control Law” was recently approved, which provided for the creation of the Virtual Assets Regulator (VARA).
This entire legislative spectrum speaks of the high reliability of doing business related to digital currency.
If you want your business to grow and scale, you should get a work permit in this jurisdiction. This country is interested in the development of blockchain technologies; therefore, it supports crypto companies and offers the most favorable taxation conditions. Here you can work completely legally and make big profits.