Dubai has been one of the most welcoming places for cryptocurrency business. It is one of the few countries that have not banned cryptocurrencies. In Dubai, many people are investing in the Cryptocurrency business & there are several reasons why people are choosing Dubai to set up crypto or blockchain businesses.
When it comes to cryptocurrency, it is never convenient to incorporate the business as this industry is still young for many investors. Despite all the financial risk, the crypto business is blooming insanely in the Emirates. One of the reasons why it has become so popular is the tax-free zone, which makes Dubai the perfect place for cryptocurrency companies to set up their operations. Also, the UAE government has taken some tremendous steps towards crypto business to streamline this process in government activities. Following that, the UAE government has launched a new law called the Digital Currency Regulatory Framework in order to attract more foreign investments, which will lead to more jobs and higher revenues.
So, before establishing a crypto business in Dubai, you should consider some crucial points to contribute to this sector.
Things You Must Know To Start A Cryptocurrency Business In Dubai
● Technical expertise Is A Must Thing
Cryptocurrency is a digital currency that is not regulated by any government instead of maintained by a revolutionary technology called blockchain technology. all of the transactions are recorded and stored in a public ledger called a blockchain. With the help of an algorithmic function, transactions happen here. Encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Also, the mining of cryptocurrency includes solving a complex computer puzzle.
So, technical knowledge is an extremely important factor in the crypto sector whether you are a developer, marketer, or broker. You must have to tech-savvy & also up to date about the crypto business sector around the world. Also, you should know, that the technical team you are incorporating has knowledge-
- How distributed ledger works
- Comprehensive knowledge about blockchains like the Ethereum protocol
- Proper understanding of financial markets & it’s technical analysis
- Have enough knowledge about core blockchain technology
● Know-How To Approach Investors
As the cryptocurrency business involves huge financial risk, it is applicable equally to the owners & investors. But to venture your business in Dubai Freezone or any other economic zone you need venture capital(VC) firms to help you financially. If you are not interested in equity financing then you can leverage the ICO(Initial Coin Offering) route to create your own token. But it comes with its own legal liabilities & financial risk.
In a nutshell, you should have good presentation skills to make investors in your business. As there are hundreds of blockchain VCs out there who are always searching for new crypto-business opportunities, you need to invest in your public speaking skills in the right way.
● Be Open To New Technologies & Innovation
Blockchain & innovations work parallel. In this fast-forwarding industry, being open-minded & flexible to adapt to new technologies in the blockchain is the most important & crucial thing. You have to be always ready to cope with the rapid market shifts quickly, otherwise, your competitors will take over on you with no time. You have to continuously develop & enhance the technical side of your operation to keep up with the changing environment.
● Calculate Risk Tolerance
Before starting your blockchain business you should know about its fluctuating market and high-risk share. Cryptocurrencies can be mined or traded, just like stocks, shares are traded on the stock market. The value of cryptocurrencies fluctuates with the supply and demand for them on various exchanges.
You have to analyze the risk factor of your business. For crypto business, the strategy working today or tomorrow may not well useful for the future. If the pricing of Bitcoin or any digital currency falls as happened in 2018 January & 2017 April, it takes years for the business owners to recover the overall loss. So, if you want to be consistent in this crypto business, you should be aware of financial risk & also look forward to adapting to changing market conditions.
Advantages Of Setting Up Cryptocurrency Business in Dubai
- Data confidentiality is the biggest advantage of the cryptocurrency business. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. This prevents fraudulent transactions from happening because it tracks each transaction and stores them in the blockchain.
- Cryptocurrency businesses are flourishing business right now. Businesses that are accepting cryptocurrencies are becoming more popular & getting higher brand exposure. So, brands have a huge opportunity to stand out. Crypto business owners can easily apart themselves from other competitors by levering blockchain technologies & innovations.
- All the activities & transactions happen online so, it reduces the business operation costs highly. Also, payment fees of cryptocurrencies are cheaper than credit card transaction costs. Also, crypto payments don’t have any service fees at all.
How can KWS Help?
If you are looking for the best cryptocurrency business setup services in Dubai then you should come to KWS because they are the best company when it comes to Cryptocurrency trading.
KWS is a leading business consulting service that provides- any kind of business setup services in Dubai, Offshore company formation in Dubai, business support(Trade license, Visa service, Legal Translation service, Trademark Registration, Company liquidation, Finding local sponsors) & so on.
If you are a new entrepreneur in this crypto-trading business, then our experienced business consulting team is here to make it easy to get a cryptocurrency license in Dubai, UAE. Our professionals have the right amount of knowledge about license-providing companies (BRL), (DED), and (DMCC). They will help you provide the required licensing procedure to finalize your business deals.