It’s no secret that Dubai is a leader in the crypto market. This is due to political and financial stability in this jurisdiction and the presence of innovation infrastructure. Therefore, a crypto exchange license in Dubai will command respect from business partners and attract them to cooperate, thereby developing business and increasing capital.
Crypto has been regarded as the future of currency. With the rapid technological advances that have been taking the world by storm, digitization is the way to go. That day is not far when the physical exchange of money will perish and everything might take place online.
But, why is crypto gaining so much popularity, and what has led to its dominance, particularly in Dubai? What are some of its benefits? How can you advance your business through it to ensure you are leading optimally? Let us get ourselves familiar with it first.
Power of Virtual Currency
Recently, virtual currency has been considered a profitable investment. Therefore, most investors believe exchange is an option for expanding their business. High-quality activities require the most modern technologies, and the UAE understands this very well because it actively supports digital coins and creates all the technical conditions for comfortable doing business.
Using distributed registry technology ensures the security of financial transactions. It is one of the most important factors for financial transactions. That is why this zone has created some of the most favorable and reliable conditions for business. Licensing in this jurisdiction will significantly increase the company’s rating.
In addition, for ease of licensing, there are simple online procedures for completing and submitting documents to get a permit. The main thing is to strictly comply with all the demands imposed by the regulatory authorities, and then licensing will occur without obstacles.
What does Permitting Provide?
One of the biggest hassles any firm, regardless of their size or business type faces is the process of getting a permit. The process might be long and at times taxing, but it is completely worth it in the long run. If your firm receives a permit in Dubai, this will give it significant advantages, the primary ones among them being the following.
It Provides the Opportunity to Trade Digital Assets
Cryptocurrency activities are carefully monitored to ensure safe trading of digital coins. Because access to international foreign exchange markets and innovative technologies are provided, the exchange will conduct practical activities, allowing it to receive a decent profit.
Short Licensing Period and Costs for Launching an Exchange
20,000 USD and 50,000 ED of authorized capital are enough to start activities. The licensing process lasts up to seven working days from the date of application. Therefore, you can create an activity very quickly, without having to rely on a long waiting period for receiving a permit, as can be the case in other jurisdictions (from several weeks to six months).
Attractive Tax Policy
As you know, tax fees are sometimes quite large, significantly reducing activity profits. But in Dubai, this problem does not exist since preferential taxes apply here:
- Income tax 0%;
- Corporate tax 0%;
- There are no duties on the export and import of goods.
In addition, it provides full repatriation of capital without restrictions. Therefore, an exchange licensed by the DMCC (Dubai Multi Commodities Centre) will have a significant financial advantage.
Using Blockchain
The presence of distributed registry technology will make exchange business processes more efficient and reliable. It is one of the most essential criteria for financial transactions. The authorities also strongly support and finance various innovative solutions to increase the efficiency of crypto activities.
Absolute Ownership of Foreign Property
Thanks to licensing, it is possible to own foreign capital fully. For this, you will not need to attract a local shareholder. Therefore, you have 100% control over your exchange without any restrictions of a given jurisdiction.
Ensuring Reliability and Safety
Maintaining a predictable business environment is key to making sound and pragmatic decisions. Exchanges can access the blockchain. Therefore, they can develop and implement various projects based on distributed ledger technology.
It allows you to conduct financial transactions safely with a high degree of protection. All this reduces the risks associated with the actions of cyber attackers. These significant advantages allow you to effectively and safely engage in activities with minimal investment.
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Types of Permits
There are 12 types of licenses in this area, which are divided into two categories:
- Licenses controlled by VARA (Virtual Assets Regulatory Authority) – There are five types under this section, including trading, mining, blockchain services, NFT marketplace, and metaverse.
- Licenses that relate to the “Regulations on virtual assets and related activities” – There are seven types of them, and these are various services, including broker, exchange, payments, transfers, etc.
Thus, the crypto exchange has a vast selection of activities related to virtual assets. The DMCC zone is a very promising jurisdiction, thanks to which you can successfully invest your capital in creating a low-cost crypto exchange within a week. Preferential taxation will allow you more profit than those who received a permit in another jurisdiction.
Final Thoughts
As you can see, the possibilities with cryptocurrency are endless. This is the sure-shot way of ensuring safe, secure, and quick transactions, and with time, it is only going to get more accessible as modernization contributes to the elimination of the present technical hurdles.
Dubai, being one of the most advanced and developed cities in the world, is the perfect place for cryptocurrency to bloom. With its benefits that range from protection against inflation to facilitating diversification, it is here to stay and it will be a wise move on your part to get yourself more acquainted with it so that you can start the process of adding crypto stocks to your business’s profile to optimize it in the market.
