Cryptocurrency License In Dubai*

While it is the case that UAE continues to grow into a hub of Fintech firms, the region is the perfect place for entrepreneurs to expand their operations. With the financial system of the UAE under more scrutiny by international organizations and regulators, it’s a perfect place to establish cryptocurrency-related businesses. Government officials are actively encouraging an environment that encourages startups and it’s not difficult to understand the reason. Many fintech companies located in Dubai have raised around $100m in the Middle East. Another advantage is that Dubai’s regulatory framework is extremely favorable to crypto-related businesses. At present banks and financial companies are fully controlled in Dubai. Furthermore, crypto-related companies can attract investors and huge amounts of trading. A favorable environment can also help the growth of cryptocurrency companies and creates a better atmosphere for investors. There are also tax advantages if you set up a cryptocurrency-related company within the UAE. The legal system of the UAE is rapidly evolving and is affected in part by Islamic law. Federal Law No. 20 of 2018 deals with anti-money laundering and combats the funding of terrorist and criminal organizations. This AML Executive Regulation applies to all emirates in the UAE which includes the DIFC. It is the UAE Central Bank that has oversight over the capital and financial markets, while the Securities and Commodities Authority (SCA) supervises these markets. The UAE has made its intention to regulate the sector clearer by creating an independent authority to oversee the business and protect the public. The ADGM The authority that regulates Dubai has recently approved the first law in the world that regulates virtual assets. The law provides a setting that is conducive to the growth of crypto companies. This law is a boon to crypto businesses. ADGM was the very first nation in the world that passed the first law that regulates the cryptocurrency industry. The ADGM has set up a regulatory agency called VARA to regulate virtual assets. If you’re considering setting up the first crypto exchange in India be aware that you’ll need to comply with India’s Exchange Control Regulations. The establishment of a business outside of India can help you attract foreign investors and avoid having to pay tax withholding. Recent changes to the budget allow businesses to establish operations in a tax-friendly nation. The government of the UAE is fully committed to blockchain technologies.

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