This is how you can secure a cryptocurrency licence in the UAE

09/04/2025 13:42 AST

What Silicon Valley did for the internet, the UAE is now doing for crypto.

But this time, the rules are clearer, the taxes are lower, and the runway is global. In a world full of regulatory confusion and crackdowns, the UAE stands out as a rare sanctuary where blockchain innovation is not only legal - it's licensed, supported, and scaled.

Crypto regulation in the UAE: Who's in charge?
The UAE has taken a pro-regulation, pro-innovation approach. Three main regulatory bodies oversee digital assets:

 Virtual Assets Regulatory Authority (VARA): Oversees most of Dubai's crypto activity, outside financial free zones.
 Financial Services Regulatory Authority (FSRA): Governs crypto and blockchain businesses in Abu Dhabi Global Market (ADGM).
 Securities and Commodities Authority (SCA): Supervises digital asset activities across the UAE and collaborates with Free Zones.

Choosing the right jurisdiction: Spotlight on the Big Four
Your choice of jurisdiction can shape everything from costs to compliance to credibility. Here are four of the UAE's most prominent crypto-friendly zones:

Dubai Multi Commodities Centre (DMCC): Located in Jumeirah Lakes Towers, DMCC has established itself as a powerhouse for crypto and commodities. With a dedicated Crypto Centre, it offers streamlined licensing, full foreign ownership, and access to an ecosystem of blockchain pioneers.

Best for: Startups, exchanges, DeFi platforms, and NFT projects.
Abu Dhabi Global Market (ADGM): Regarded globally for its robust regulatory framework, ADGM is ideal for financial institutions, blockchain-based funds, and institutional-grade exchanges. It's governed by the FSRA, known for its transparent and internationally aligned digital asset policies.

Best for: Institutional crypto firms, tokenization platforms, and fintechs targeting compliance-conscious investors.
Dubai International Financial Centre (DIFC): DIFC is the UAE's premier financial hub, offering global market access and English common law legal systems. With growing support for Web3 ventures, it's ideal for fintech startups, asset managers, and cross-border players.

Best for: Global fintechs, compliance-heavy crypto firms, and funds.
Ras Al Khaimah Digital Assets Oasis (RAK DAO): Launched in 2023, RAK DAO is the first free zone in the world dedicated to digital and virtual asset businesses. It offers quick setup, low entry barriers, and a Web3-native approach designed for creators, developers, and innovators.

Best for: NFT creators, gaming studios, DeFi startups, and early-stage Web3 businesses.
Types of licences you can apply for
Depending on your business model, you can apply for:

 Crypto exchange licence
 Broker/dealer licence
 Wallet and custody services
 ICO/token launch licence
 NFT/Metaverse business licence


Step-by-step: How to get your crypto licence
1. Pick your zone: Evaluate DMCC, ADGM, DIFC, and RAK DAO based on your goals, audience, and compliance needs.
2. Craft your business plan: Include your operating model, risk strategy, compliance measures, tech stack, and cybersecurity protocols.
3. Register the company: Submit corporate structure, shareholders info, office location, and required documents.
4. Apply for the licence: Attach passports, business plan, AML/CTF policies, and proof of address.
5. Undergo regulatory review: Authorities will assess your application for compliance, integrity, and risk mitigation.
6. Open a corporate bank account: Not all UAE banks are crypto-friendly. Work with advisors who know which banks to approach.
7. Go live - and stay compliant: Once approved, begin operations. Expect periodic audits, filings, and compliance reviews.

Why UAE is the crypto capital of the Middle East
 Single digit tax rate
 100% Foreign ownership
 Robust legal protection
 Access to global markets
 Visionary leadership in Web3

What to watch out for
 Stringent compliance: Be ready for detailed AML and cybersecurity protocols.
 Banking limitations: Crypto banking still faces some resistance.
 Licensing costs: Initial setup, advisory, and license fees can be significant.

Where crypto dreams get a passport
In a world where regulation is chaos and innovation is often clipped by confusion, the UAE offers something rare - clarity with courage. Here, your crypto business isn't just registered. it's respected.

From the futuristic vibes of RAK DAO to the institutional strength of ADGM, the UAE gives you the licence - literally and metaphorically - to build boldly.

If you believe your idea deserves a global stage, there's no better launchpad than the Emirates.

The writer is Partner, MICS.

Khaleej Times