Nowadays, cryptocurrency is in highlight for all good reasons. Crypto-currencies have entirely changed the world of transactions.

It is not entirely clear who invented cryptocurrency, individual or group of people, although this name Satoshi Nakamoto came as the founder of Cryptocurrency in 2008.

Cryptocurrency is based on blockchain and is digital and virtual. The primary purpose of cryptocurrency is to decentralize all ledger transactions.

In 2009, crypto currency opened to all means; now, people can trade in crypto-currency.   

Crypto-currency’s first coin is Bitcoin (BTC), with a value of $0 in 2009, and in 2010, its value turned to $0.09. Crypto remains in shades till 2010.

However, in 2011, its value boosted from $1 to $32 with transactions of 9.9 million bitcoins, which cost around $214 million. Presently, its value is $20,346, with daily transactions of  6 to 7 million. 

Crypto piqued the interests of investors across the globe. However, the crypto market also had many ups and downs. 

Due to the Russian-Ukraine war, almost 50% to 80% of cryptocurrencies were affected. 

In addition, many countries banned cryptocurrency, while some countries imposed a heavy tax on trading in crypto.

It is undeniable everything has advantages and disadvantages, and the same is the case in cryptocurrency. 

Following are the things you need to look for if you consider investing in Cryptocurrency.

Drawbacks of Cryptocurrency

Their drawbacks cannot be ignored

• Lack of Security- the government cannot regulate cryptocurrency because it is decentralized. In other words, there is no central authority.

• High Electricity Consumption-  crypto currency harms the environment as it consumes an estimated 27-170 Terawatt-hours of electricity per year. However, if we talk about China’s electricity consumption which is the biggest electricity consumer in the world, it is 8.8 trillion kilowatt-hours only.

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• Exhaustion of Fossil and Fuels- we all know fossil fuels are exhausted daily.

• Volatile Crypto is highly volatile. Almost every year, it fluctuates around 50- 60%. If we trace the Bitcoin value chart, we can see the abrupt fluctuation of values. For instance, in 2011, the value of Bitcoin increased to 32$ then declined to 2$. Similar ups and downs can be seen throughout the evolution of Bitcoin.

How to get a crypto license in Dubai

When every country speculates the cryptocurrency due to future instability, UAE has not only legalized it but also imposed Zero taxes on it. It is becoming one of the world’s first hubs of Blockchain and crypto Technology. So if you are a Crypto nerd looking to invest, Crypto UAE is a place for you.

The UAE’s government delegates the main power to one body, Securities and Commodities. Authorities are responsible for the rules and regulation of cryptocurrency – license, trading, mining, NFTs, or metaverse, etc., majorly all types of activities.  

AML is responsible for checking the company’s activities, whether they are involved in any Money Laundry, Financial Terrorism or cyber security compliance.

Below are the simple steps of getting a Crypto License in Dubai. 

Before going to the steps, you must have a company name and business plan to show. Once your company name is decided you are going to:-

Procedure to open a Crypto Company in Dubai :-

Step 1  

Choose Jurisdiction: There are three UAE authorities issuing cryptocurrency licenses. They are

a) Dubai Multi Commodity Center DMCC

b) Dubai Airport Free Zone Authority DAFZA

c) Abu Dhabi Global MARKET

You need to pick one according to your requirements.

STEP 2  

NAME RESERVATION OR PRE-APPROVAL

Choose the name of the company and submit the crypto license application to the respective authority.

STEP 3  

SUBMIT A DETAILED BUSINESS PLAN

Your business plan must include the following details:-

SHAREHOLDER PROFILE

Make a shareholder profile. It contains the shareholder’s details and their work history. 

AREA OF OPERTIONS

It would help you if you mention sectors of the crypto in your plan.

TARGET CUSTOMER

Describe your target customers.

REVENUE MODEL

You have to present your earning methods or blueprints of the Crypto Business earning or revenue, models.

FINANCIAL POSITION

You must show the operating expense for 6 to 12 months so that company can survive if they offer a loss of 6-12 months.

SOURCE OF FUND

You must indicate your source of funds, which Anti Money Laundry AML will later investigate.

EXCHANGE OF TRADING 

The company should mention details of the exchange of trading such as whether they deal or involve in 

a) Trading of Crypto Commodities.

b) Distribution of Ledger Services

c) NFTs Activities or Metaverse

d) Marketing of Crypto Assets

STEP 4 

 CHOOSE TYPE OF OFFICE

a) ONLINE – VIRTUAL OFFICE

b) OFFLINE – PHYSICAL OFFICE

STEP 5 

REGISTRATION AND APPROVAL

After submitting your business plan, you will receive an email to check the status. If your proposal is approved, follow the next step.

STEP 6 

 GETTING INCORPORATION DOCUMENTS

You will receive Certificate of Incorporation  Crypto Business a Certificate Memorandum of Association implying that you are allowed to pursue your business.

REQUIRED DOCUMENTS-

To receive a crypto license in Dubai, you must have these documents-

PASSPORT COPY

PROOF ADDRESS

CONTACT DETAILS

BUSINESS PLAN

Crypto currency license cost in Dubai

The capital requirement for starting a Cryptocurrency business in UAE is around 50000 AED or $14000,   which includes name reservation,  license cost, virtual office, and license agreement fees. Further, it depends upon the number of shareholders and other factors.

TIME 

A tentative time of three to four weeks is required to get the crypto license in UAE.