Consulting24: Your Guide to Crypto Trading License in UAE
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Establishing Your Corporate Entity;
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Help in Securing a Cryptocurrency License;
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Guidance in Assembling AML/CTF Compliance Files;
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Assistance for Sequential Crypto License Application Steps;
Our Pricing: 20,000€
Remember, these costs are separate from government fees, which usually range from 30,000-80,000€.
Our Clients
UAE Crypto Licensing
Advisory Services
Means offering, providing or agreeing to provide a personal recommendation* to a client, either upon its request, or on the initiative of the Entity providing the recommendation, in respect of one or more actions or transactions relating to any Virtual Assets.
*When providing a personal recommendation, the Entity providing the recommendation shall consider the following factors at a minimum in respect of each client—
[a]knowledge and experience in investing in Virtual Assets;
[b]investment objectives including, but not limited to, risk tolerance, time horizon and venues through which they can acquire Virtual Assets; and
[c]financial circumstances including, but not limited to, their ability to bear sudden and significant losses or proportion of their net worth invested in Virtual Assets.
Broker-Dealer Services
Means any of the following—
[a]arranging orders for the purchase and sale of Virtual Assets between two Entities;
[b]soliciting or accepting orders for Virtual Assets and accepting fiat currency, or other Virtual Assets, for such orders;
[c]facilitating the matching of transactions in Virtual Assets between buyers and sellers;
[d]entering into Virtual Asset transactions as a dealer on behalf of the Entity for its own account;
[e]making a market in Virtual Assets using client assets; or
[f]providing placement, distribution or other issuance* related services to clients issuing Virtual Assets.
*As per Regulation II, any Entity in the Emirate that issues a Virtual Asset in the course of a business, must comply with the VA Issuance Rulebook, as may be amended from time to time.
Custody Services
Means safekeeping Virtual Assets for or on behalf of another Entity and acting only on verified instructions from or on behalf of such Entity*.
*All VASPs shall be subject to Rules regarding the storage and custody of clients’ Virtual Assets. Only VASPs which segregate each client’s assets in separate VA Wallets will qualify for a Custody Services Licence.
Exchange Services
Means any of the following—
[a]conducting an exchange, trade or conversion between Virtual Assets and fiat currency;
[b]conducting an exchange, trade or conversion between one or more Virtual Assets;
[c]matching orders between buyers and sellers and conducting an exchange, trade or conversion between [i] Virtual Assets and fiat currency or [ii] one or more Virtual Assets; or
[d]maintaining an order book in furtherance of [a], [b] or [c] above.
Lending and Borrowing Services
Means carrying out a contract under which a Virtual Asset shall be transferred or lent from one or more parties [the Lender[s]] to one or more other parties [the Borrower[s]] where the Borrower[s] shall commit to return the same, at the request of the Lender[s], at any time either during or at the end of the period agreed upon.
VA Management and Investment Services
Means acting on behalf of an Entity as an agent, or fiduciary, or otherwise taking responsibility for the management, administration or disposition of that Entity’s Virtual Assets.
Examples may include, but shall not be limited to—
[a]investment management services or otherwise managing Virtual Assets; and
[b]taking responsibility for the staking of Virtual Assets for the purposes of earning fees or other amounts paid to validators and/or node operators of a proof-of-stake Distributed Ledger Technology.
VA Transfer and Settlement Services
Means the transmission or transfer, and/or settlement of Virtual Assets from one Entity to another Entity or from one Entity to another VA Wallet, address or location.
The Virtual Assets Regulatory Authority (VARA), found at www.vara.ae, is the regulatory institution overseeing the birth, application, and transaction of digital assets, whether they are produced in or disseminated throughout the Emirate of Dubai.
Official Fees of UAE Crypto Licensing
VA Activity | Licence Application Fee | Licence Extension Fee | Annual Supervision Fee | Share Capital |
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VA Transfer and Settlement Services | AED 40,000 10,900$ | AED 20,000 5,450$ | AED 80,000 21,800$ | The higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads. |
Advisory Services | AED 40,000 10,900$ | AED 20,000 5,450$ | AED 80,000 21,800$ | AED 100,000. |
Broker-Dealer Services | AED 100,000 27,250$ | AED 50,000 27,250$ | AED 200,000 54,500$ | Broker-Dealer Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 400,000; or [ii] 15% of fixed annual overheads. In all other instances, the higher of [i] AED 600,000; or [ii] 25% of fixed annual overheads. |
Custody Services | AED 100,000 27,250$ | AED 50,000 27,250$ | AED 200,000 54,500$ | The higher of [i] AED 600,000; or [ii] 25% of fixed annual overheads. |
Exchange Services | AED 100,000 27,250$ | AED 50,000 27,250$ | AED 200,000 54,500$ | Exchange Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 800,000; or [ii] 15% of fixed annual overheads. In all other instances, the higher of [i] AED 1,500,000; or [ii] 25% of fixed annual overheads. |
Lending and Borrowing Services | AED 100,000 27,250$ | AED 50,000 27,250$ | AED 200,000 54,500$ | The higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads. |
VA Management and Investment Services | AED 100,000 27,250$ | AED 50,000 27,250$ | AED 200,000 54,500$ | VA Management and Investment Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 280,000; or [ii] 15% of fixed annual overheads. In all other instances, the higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads. |
Understanding UAE's Crypto Trading License: A Step-by-Step Guide
For those looking to secure a cryptocurrency license in Dubai (excluding DIFC), two main paths exist: submitting applications via mainland entities or tapping into the benefits granted by the Dubai Free Zone Authority (FZA).
The process of acquiring a cryptocurrency license in Dubai starts with the submission of the Initial Approval Application. This pivotal step requires the provision of all relevant documents and information as per the regulatory guidelines. After the submission, the application is meticulously reviewed to verify its compliance with regulatory standards, and the applicant's qualifications are gauged against preset criteria. Earning Initial Approval is a momentous achievement that acts as a gateway to the subsequent steps in the license acquisition process. Our dedicated team of experts is on hand to guide you during this stage, ensuring a smooth and successful application journey.
Beginning- Submit the Initial Approval Application
Step 1: Set in Motion the Company Registration Process
Commence the journey by delivering all the required documents and specifics for your company's registration. This foundational step readies the stage for subsequent processes.
Step 2: Accomplish the Initial Disclosure Questionnaire
In tandem with the registration process, your task is to diligently complete and submit the Initial Disclosure Questionnaire, compiling important business data indispensable for regulatory adherence.
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Step 3: Develop a Thorough Business Plan
Devise a thorough business plan detailing your company's objectives, financial predictions, and tactics for integrating cryptocurrency. This effort enhances the reliability of your application.
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Step 4: Unveil Ownership and Management Information
Reveal detailed and lucid information about the beneficial owners and senior management of your company. This degree of transparency is vital for the regulatory examination process.
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Step 5: Remit the Initial Payment (50% of Total Fees)
To advance with the registration, the disbursement of initial fees is mandatory. These costs address administrative expenses and demonstrate your commitment to the process.
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Upon successful accomplishment of these stages, your company is ready to acquire necessary approvals, start operations, and satisfy legal obligations. It's essential to note that offering services at this stage is not allowed.
Step 2 - Full Market Product (FMP) License Application Submission
Step 1: Upon receiving Initial Approval, gather and submit the necessary paperwork in line with VARA's guidelines for the Full Market Product (FMP) license. Be prepared for possible additional document requests or meetings set by VARA.
Step 2: Handle all VARA feedback swiftly and thoroughly, meet any further stipulations, and continue with the remittance of the remaining license application fees and first-year supervision charges.
Step 3: When all financial obligations and operational requirements are fulfilled, your company will be granted the FMP license, allowing you to initiate Virtual Asset operations.
Please remember: Concurrent with the FMP license issuance, VARA might enforce certain operational conditions.
A Comparative Study on Acquiring Crypto Licenses: Dubai vs. Lithuania vs. Estonia
Feature | Dubai | Lithuania | Estonia |
|---|---|---|---|
Cost | 20 000€ | 20 000€ | 25 000€ |
License Type & Government fee | 1. 9,700€ - Advisory Services & VA Transfer and Settlement Services | 1. Cryptocurrency exchange license
2. Crypto wallet and custodian services license
| 1. Cryptocurrency exchange license
2. Crypto wallet and custodian services license
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2. 24,250€ - Broker-Dealer, Custody, Exchange, Lending and Borrowing & VA Management and Investment Services | No additional fee | 10 000€ | |
Audit | May be required by VARA | Not required | Monthly and yearly are needed |
Office | Required | Can be virtual | Required |
AML (Anti-Money Laundry Officer) | Can be any nationality | Local needed | Local needed |
AML monthly salary | 5000€ | Starting from 1200€ | Starting from 2000€ |
Local director | Can be any nationality | Can be any nationality | Can be of any nationality, but have to live in Estonia |
Share capital terms | Immidiately | 25% now, 75% within a year.
| Immediately |
Required share capital | 24,250€ (Advisory Services) - 194,000€ (Exchange Services)
| 125 000€ | 100 000€ - Crypto wallet and custodian services license.
250000€ - Cryptocurrency exchange license |
If you're exploring the India market in the realm of cryptocurrencies, understanding RBI cryptocurrency regulations is critical. At Consulting24, we provide you with the necessary insights and guidelines to navigate this complex landscape successfully, ensuring you stay compliant while maximizing your crypto endeavors in India.
Our Team
Lena Elvbakken
Co-Founder
"We streamline the process of obtaining a Dubai crypto license, navigating through regulatory obstacles to enhance your crypto venture."
Mardo Soo
Founder
"As the initiator of Consulting24, my goal is to demystify the convoluted process of attaining a Dubai crypto license for industry trailblazers. We focus on ease of process, cost-efficient strategies, and a hurdle-free market entry. Count on us for a cost-effective pathway towards securing your Dubai crypto license."