As a prime & popular location for business, Dubai has been one of the most welcoming places for blockchain technology business. It is one of the few countries that have not banned cryptocurrencies. Around $6 billion in bitcoin transactions were logged online, making Dubai the world's major base for cryptocurrency business. The global crypto or blockchain market is estimated
Blockchain & cryptocurrencies may be an exceptionally new concept for some business entrepreneurs, it already has huge potential in the Dubai market. Also, the UAE government has introduced a new law called the Digital Currency Regulatory Framework that will regulate digital currency transactions. It also includes provisions to protect investors and ensure transparent trading activities.
Despite a young sector in Dubai, the cryptocurrency market attracts business owners & expats because it has a good brand reputation & exposure, security with blockchain technology, low transaction cost, 100% business ownership & so on.
Setting up blockchain business is easy & straightforward you keep in touch with a proper business setup service in Dubai. If you are ready to venture into this blockchain business & want to adopt the multiple business opportunities of crypto trading, holding & exchanging then this article is for you! We are going to cover the overview of the blockchain business in Dubai & how to start a blockchain company in Dubai.
What is Blockchain?
You can consider blockchain as a basic level term for the complex concept of cryptocurrency. In a simple term, Blockchain is a technology that refers to a system of recording information regarding your crypto transaction, such as a digital ledger. It is a database that is absolutely different from the traditional database you know. It is a kind of distributed ledger that stores the decentralized currency records in a digital format.
Whenever a new transaction happens, a new block of data is created which contains the crypto transaction details, date & time. As this block is generated with some algorithmic nature, it is nearly impossible to alter or hack.
In blockchain technology, stored blocks are connected through cryptography. Whenever a block is run out of space, a new block is created & the new block is connected to the previous block. In this way, all the data is stored in chronological order.
Overview of Blockchain Business in Dubai
When you are a business entrepreneur in Dubai, the UAE government encourages you to open a cryptocurrency or blockchain company in Dubai. Also, UAE central bank & the Dubai Supreme Legislation Committee promotes digital currencies as payment methods. With the rising interest in the crypto business, here is some highlight that shows how perfect Dubai could be to incorporate your first Blockchain business.
- Right now, 400+ blockchain businesses operating in Dubai. And it is expected that the number will grow to 1000+ at the end of 2022.
- Recently introduced Blockchain strategy 2021 by the UAE government has a special focus on foreign entrepreneurs so that they can pursue trade & business in a lawful way in Dubai. In this strategy, it is projected that almost 50% of government transactions will be conducted via blockchain technology.
- To carry out this cryptocurrency trade, FSRA (The Financial Services Regulatory Authority) & ADGM (Abu Dhabi Global Markets) have become the key regulator to issue clear regulations & guidelines.
- The new law called the Digital Currency Regulatory Framework has been rolled out with an aim to prevent money laundering & protect consumers.
- The DMCC Crypto Center, which is launched in May’21, is now the home of 100 crypto organizations.
- Lastly, Dubai hosts various kinds of Crypto Expo which highly presents cryptographic & blockchain technology in Dubai.
Things You Should Know Before Starting A Blockchain Company in Dubai
1. Technically Skilled
Before starting any crypto business it is necessary to be tech-savvy, whether you are a developer, marketer, or broker. In this sector, you need to understand the blockchain technology system & for every blockchain company, it is a must to have a team of technical experts. Even if, you don’t want to be a crypto developer, you may be required to make technical claims as a crypto founder.
2. Approach Investors Properly
Though crypto business looks attractive & profitable, it has some certain financial risk factors for the business owners as well as for the investors. Despite all the risk, you will have to approach & attract nature capital(VC) companies. If you are interested in creating your own currency or coin you can take the initial coin offering(ICO) route. As there are hundreds of blockchain VCs out there who are always looking for new crypto-business opportunities, you need to leverage public speaking skills in the right way.
3. Open To Adaptation
Being open-minded & flexible to adapt to new things in the blockchain is the most important & crucial thing. As an example, Ethereum the second most popular blockchain technology hadn’t even been developed at that time, but right now, it holds a large market share of the crypto market. You need to always prepare to adapt to the new market trends which cause huge market shifts
Steps To Start A New Blockchain Company in Dubai
Step 1: Suitable Company Name
The first step is to choose a suitable company name. Now there are certain rules while choosing your trade name. Your business name should be clear & memorable that emphasize your business activity. Rules you need to follow while selecting a crypto business name:
- Not related to any religious or political name
- Don’t indicate any abusive blasphemous name
- Your chosen business name is still available for registration
- Name that doesn’t hurt any public moral
- Name that is legally relevant to the specific business activity
- The name shouldn’t have any reference to a well-known organization & even an abbreviation of your name
Step 2: Select The Right Economic Zone
The success of your crypto business totally depends on selecting the right jurisdiction in Dubai. There are different kinds of pros & cons for every economic zone. If you select the Dubai Freezone area for blockchain business, you will be benefited from no currency restriction & total profit repatriation. For Dubai mainland are, you will be able to cater your service to any part of the UAE. For opening an overseas company you need to look for a local sponsor.
Step 3: Obtaining Crypto License
To operate a lawful blockchain business in Dubai you need to apply for a trade license issued by the Dubai Department of Economic Development (DED). To obtain a crypto license in Dubai, you need to fulfill the following requirements
- Show a crypto business plan
- Collect a fill out a commercial license form, which is issued by DED
- Submit valid passport copies of shareholders
- Show a clean crypto wallet
- Capital resources & business operational activities need to be visible for 6-12 months
Cryptocurrency or blockchain business is operated in the same way another financial trading business operates. So, to ensure that your business is correctly licensed and maintaining the laws, you have to comply with the anti-money laundering regulations & need to submit your accounts for audit. With the help of proper experts, the whole business setup process will be easy & straightforward. Hopefully, this guide will help you with proper knowledge about setting up a blockchain company in Dubai.
How can KWS help?
If you are looking for the best blockchain 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 company formation consultant in Dubai 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.