How to Get Started with Cryptocurrency Trading in DMCC Free Zone
Have you ever ruminated over trying your luck in the cryptocurrency business? If so, starting your cryptocurrency trading business in the DMCC Free Zone in Dubai is your best bet!
As the world takes greater strides in technology, more technological implementations are being seen. A majority of the things we do today is online, or are transitioning to the web.
Hence, it comes as no surprise that even money and currency has embarked on the digital bandwagon. Most of us find it convenient to carry out transactions over the phone, through modes such as Paypal, Google Pay, Samsung Pay, etc.
Not long ago, the technological world saw the advent of a technology called Blockchain. This technology gave rise to what is today known as cryptocurrency. As soon as cryptocurrency became known, it has been in the limelight ever since. It is seeing an upward trend day by day, with more and more people investing in it.
What is Cryptocurrency?
Cryptocurrency is a digital currency that is purported to replace the existing mode of currency in the future. It is a form of online payment that can be used to buy services and goods. The principle behind digital modes of payment and cryptocurrency overlaps significantly, but the latter is unique in functioning.
Investing in cryptocurrency has time and again shown how lucrative it is over traditional modes of payment. Many are fascinated with the benefits that cryptocurrency holds, including:
Privacy: Cryptocurrency can be tracked and is transparent. However, one cannot trace its origins, thus providing a secure transaction.
Decentralized Technology: This allows only a two-person transaction. I.e., a third-party isn’t involved. Additionally, no one else can monitor the transaction.
Individuality: The payment can be acquired only by the involved parties and not by banks. Therefore, this gives more control over the cash flow as the account cannot be frozen.
Used Worldwide: Over 70 countries already have legalized the use of cryptocurrencies, including the UAE. The more important thing is that the value of cryptocurrencies does not differ from country to country.
Due to the far-reaching impacts that cryptocurrency has had, the UAE has identified it as an important asset. The Dubai Multi Commodities Center (DMCC) Free Zone in Dubai is the government entity for commodities trade and enterprise. It has come into a Memorandum of Understanding (MoU) with the Securities and Commodities Authority (SCA) to form the DMCC Crypto Centre.
Advantages of Setting up Cryptocurrency Business in DMCC Free Zone
DMCC is one of the only two free zones in the UAE that permits the issuance of cryptocurrency. It rose to prominence when it launched DigitalSugar. DigitalSugar essentially uses blockchain technology intuitively to bridge the gap between rural farmers and merchants for the trading of sugar on an international level. DMCC proved its capabilities of handling cryptographic and distributed ledger technologies with that launch.
In 2024, DMCC signs the initial agreement with SCA, which allows individuals to start a cryptocurrency business or carry out cryptocurrency trading in UAE.
The initial boost of success with cryptocurrency has allowed DMCC to provide ample opportunities to crypto-entrepreneurs in terms of co-working spaces, SMEs and an array of programs. The Crypto Centre also provides shelter to all the cryptocurrency businesses that exist within Dubai.
DMCC Free Zone Licenses for Cryptocurrency
The Crypto Centre offers a wide range of licenses to prospective businesses. The licenses that DMCC offers carry a lot of privileges and are cost-effective. Hence, starting a cryptocurrency business with DMCC Free Zone — especially with how frequently there are upsurges in the coin — would prove to be a very lucrative business.
The DMCC offers two licenses for cryptocurrency activity:
Proprietary Trading in Cryptocurrency-circles: This activity enables you to trade crypto-commodities that have been developed on distributed ledger technology applications. However, this activity does not include the exchange of cryptocurrency, providing brokerage services, payment processing, financial services, storage services or banking services.
Distributed Ledger Technology Services: This activity encapsulates all database management solutions and other ancillary services that run on distributed ledger technology such as blockchain. Licensees carrying out this activity aren’t permitted to provide any financial, payment processing, or brokerage services.
Dual License in DMCC Free Zone
DMCC Free Zone is one of the few free zones in the UAE that offers an option of dual licensing. By obtaining dual licensing, one can also conduct their businesses in mainland, essentially spreading over a wide area. In order to get eligible for dual licensing, one will have to obtain both free zone and mainland licenses.
Some of the most prominent benefits of obtaining dual-licensing are:
- Affordable packages
- Time-efficient
- Allows 100% foreign-owned companies to also perform operations in mainland
Get Started Here
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