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And how does it work? This article will answer these questions and more.
Cryptocurrency works by using an algorithm called blockchain technology. It's essentially a distributed ledger system where transactions are recorded chronologically and publicly.
How Does Bitcoin Work?
Bitcoin was invented by an unknown programmer using the alias Satoshi Nakamoto in 2008. It's a decentralized peer-to-peer network that allows users to send money directly to each other without going through financial institutions.
How Do You Buy Bitcoins?
There are several ways to buy bitcoins. One of the easiest ways is to use a bitcoin exchange. These exchanges allow people to trade fiat currency (like dollars) for bitcoins. They also provide wallet services where users can store their bitcoins.
How Can I Sell My Bitcoins?
If you decide to sell your bitcoins, there are two main options available to you. You can either sell them directly to another user through an online marketplace, or you can sell them to a third party company who will then resell them to other users.
What is a Blockchain?
Blockchain is the basic level introduction to the complex concept of cryptocurrency. A blockchain is simply a distributed database that is shared among the nodes of a computer network. Similar to a database, the blockchain also stores information in a digital format. Although blockchains are used in various other things they are renowned for their role in cryptocurrency systems. The blockchain essentially helps in maintaining a secure and decentralized record of the transactions. Blockchain, although similar to a database, differs from a traditional database by the way it stores the information. The information in a blockchain is stored in blocks which are then linked via cryptography. The arrival of new data is stored in a fresh block. Once a block runs out of space to store data, a new block is created while the previous block is linked to the newly created block. This is how the entire data is chained together in chronological order. Various types of data can be stored in a blockchain but the most common utilization of it has been the maintaining of ledgers for transactions. In terms of famous cryptocurrencies like Bitcoin, the blockchains in their case are used in a decentralized way. This means that no one person or an entity holds control but everyone holds collective control. In the case of cryptocurrency, the decentralized blockchains are irreversible; meaning that the transactions are going to have a permanent record and will be viewable to anyone. It is worth adding that the blockchain data, although it maintains the records and allows them to be recorded and distributed, the data cannot be altered, deleted, or destroyed.
Requirements associated with a crypto
trading business in the UAE
Although what has been mentioned in the previous heading can also be
considered to be requirements but there are some additional things that need to
be taken into account.
things that will be required to complete the process for getting a
crypto currency license in Dubai, below are requirements that your company must
meet to commence a crypto venture:
The “UAE financial free zone” divisions should be integrated with all
crypto assets.
· Make sure that your
financial resources and other operational expenses are accessible for around
six to twelve months.
· Implement top-notch
cybersecurity mechanisms to ensure that the data is safe for all the
crypto-related operational transactions.
Include copies of all of your stakeholders' valid passports to get a
crypto currency exchange license in the UAE.
Things to consider before you launch
your crypto business in Dubai, UAE
All the crypto-related ventures (representative offices, data mining
firms, and consultancies) are monitored and regulated by VARA that's set up
under the Dubai World Trade Centre (DWTC). Therefore, you should get in touch
with the regulatory authority to comprehend the legitimacy of your crypto
currency business in the Emirates.
To set up a crypto business in the Dubai International Financial Centre
(DIFC), it's required for the company to have at least 5 years of legal
presence in some other country in the crypto currency domain. The best way to
incorporate such a company is through a representative office in Dubai.
The Dubai Multi Commodities Centre (DMCC) issues an exclusive
self-proprietary crypto currency license that empowers you to invest in crypto
assets. You can connect with Labeebs business experts to know about launching a
business in DMCC.
Do you want to open a data-mining firm for your crypto-related business
in Dubai? The good news is you can do so by applying for an IT company trading
license and obtaining the additional consent for crypto currency business (if
needed).
Crypto currency business aspirants can also set up a consultancy
enterprise in Dubai. You can get in touch with the experts at Labeeb, and we'll
help you open a bank account for your crypto consultancy business in Dubai.
Advantages of setting up a crypto
business in Dubai
Today's audience is always looking for modern-day companies that accept
cryptocurrencies for various transactions. Therefore, this becomes a standout
feature for your business that separates it from the rest of the competition.
It's a great asset to add to your venture to attract wider audiences to your
products & services.
The best part about transactions that happen via blockchain is that
there aren't any gateway or service charges. Therefore, this reduces a
company's transactional cost significantly. In addition, there aren't any
cross-border barriers to making crypto currency transfers.
A blockchain is a digitally distributed, decentralized, public
ledger that exists across a network. A mechanism that offers enhanced
encryption facilities. Therefore, you can safely make crypto transactions from
anywhere in the world with the same encryption standards.
How to apply for a crypto currency license
in Dubai?
You need to follow the steps discussed below to obtain a crypto license
in the UAE:
Step 1. Choose a business name
Do you have a trading name in your mind for your crypto currency
business? If yes, you can send it over to the concerned governing body for
approval. If not, you can connect with the business specialists at Labeeb, and
we'll help you shortlist a few names for your venture.
Additionally, you need to ensure that you follow all the naming
convention guidelines established by the government.
Step 2. Get in touch with the concerned
jurisdiction
Crypto-related ventures in the UAE are supervised by the virtual asset
regulatory authority (VARA). For instance, a company must have at least 5 years
of legal presence in some other country in the crypto currency domain to become
eligible to launch a crypto venture in the DIFC free zone.
You can establish a representative office of your parent crypto company
in the UAE in any of the desired free zones or even in the mainland region.
Step 3. Secure a crypto currency
license
The next step is to obtain a crypto license in Dubai. The Financial
Services Regulatory Authority (FSRA), Securities and Commodities Authority
(SCA), and Dubai Financial Services Authority (DFSA) regulate crypto currency
& blockchain assignments in the UAE.
You need to meet all the paperwork and approval requirements to get this
permit. Therefore, it's recommended to collaborate with the business license
specialists at Labeeb. We file your application after thoroughly assessing the
information to ensure you get your license in one go.
Step 4. Follow all the compliance
protocols
Crypto currency trading in the UAE is vigilantly regulated, just like
other financial trading operations. The SCA published Crypto Assets Activities
Regulation (CARR) standards that outline the general operational regulations
for crypto-asset enterprises and users.
It also includes additional anti-money laundering and anti-terrorist
financing laws. These regulations include the requirement for a robust
compliance network, as well as KYC and AML monitoring requirements.
Additionally, the government takes legal actions against firms that
don't follow the safety & compliance regulations.
Launch your crypto currency business in
Dubai, UAE!
A crypto trading license in the UAE opens the doors for new-age
investors to find several lucrative business opportunities in this futuristic
financial sector. Therefore, now is the time to act and set up your crypto
company in the Emirates by connecting with Labeeb.
We offer end-to-end business assistance to our clients to ensure they
don't face any complexities to launch their ventures in the UAE. Therefore, all
you need to do is collaborate with our professionals, and they'll handle the
rest!
Crypto currency Business Plan in UAE
The Department of Economic Development (DED) will issue the crypto
currency license in Dubai. However, the issuance of the license is dependent on
the business plan from your end which needs to be provided beforehand.
The business plan for a crypto currency license comprises the following
things:
Business Idea
The business goals, both short and long-term, need to be mentioned. The
business idea also includes the basic details of the project and its general
operations. You will also need to pen down the details of how the business
activities will be managed in your business.
Financial Proposal
This will add the details as to how you will be financing your project,
how the capital will be raised, and where the funds will be managed for the
business activities. If your funding strategy includes your business investors
then information regarding their investment needs to be provided. However, if
you are self-financing then all the documents need to be filled and provided.
The Concept
The concept essentially depicts the kinds of cryptocurrencies you will
be trading and/or mining. In addition to that, what the final product will be,
and what will be the criteria on which you will be selecting it.
Business Models
In this, you will need to provide a strategy through which you will be
implementing your business plan. Moreover, this should also include the methods
and techniques you plan on using to compete with the existing rivals in Dubai.
Understanding the Crypto currency
License in UAE
In order to conduct legitimate business in Dubai or any other state of
the UAE, a trade license is required by the corporation. Companies looking to
open a crypto-based company in the UAE will require a commercial license
because the crypto currency business falls under that category. In order to
understand this further, commercial licenses are required for commercial
processes which involved trading processes. Since the crypto currency business
is directly related to the trading of Bitcoin along with other currencies, a
commercial license has to be obtained. With the use of this crypto permit, the
companies can begin the operations of the business.
How to Obtain Crypto currency License
in Dubai?
Some rules and regulations are required to be followed if you plan on
attaining a crypto currency license in Dubai. Here are some things to keep an
eye out for:
Complete the application and submit it to the registered corporates of
the UAE.
Documentation linked to the company's registration and the shareholders
need to be provided.
Company's official document to DMCC free-zone local landowners needs to
be shared.
Ensure that all documents mentioned in the application process are
provided.
Submit the application form fee and attach the receipt to complete the
process.
Once you have completed the procedure and paid the dues, you will get a
confirmation email on the registered email address. Following that, you will
receive the crypto currency license within weeks after the approval.
How Labeeb Consultancy Can Help?
Labeeb Consultancy has deployed a team of highly trained sales
professionals who specialize in the field of innovative technologies and
cryptocurrency. We provide affordable services and also help the entrepreneurs
along the way and create a lasting business relationship with them.
Why Choose Labeeb Consultancy?
Labeeb Businessmen Services Consultancy has proven itself as a reliable
partner to help businesses get up and running. We can create ease for the
entrepreneurs who are planning on getting a cryptocurrency license in Dubai,
UAE. Our sales representatives have complete knowledge about license-providing
companies which include BRL, DED, and DMCC.
In addition to this, We also provide real-time details and updates to
our clients to keep them in the loop of everything that is happening. Feel free
to contact us for further information regarding obtaining a cryptocurrency
license in Dubai, UAE.
How can Company Setup
Consultants help you?
Consists of a team of
professionals who are located in Dubai, UAE. We offer our services at an
affordable rate so that entrepreneurs can easily do their business in Dubai and
the rest of the emirates. Besides providing licensing facilities, we also
provide other services that ensure the day-to-day operation of your business is
impeccable. Our one true purpose is to fulfill our client's needs and achieve
customer satisfaction. Company Setup Consultants:
1. Here are how we can help you:
2. Setup your company in Dubai and the UAE.
3. Get the business trade license for your company.
4. Get the cryptocurrency license in Dubai, UAE for you.
5. Open your corporate bank account.
6. Advice you on any legal issues with your business.
7. Help you with the day-to-day operation of your business.
To Speak with our
Experienced Business Consultants for further information and assistance, call
us at +971547537303. Send a WhatsApp Message for Chat Query on +971547537303 or email us at labeeb.bs@gmail.com
CRYPTO EXPO DUBAI
2022:
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