Dubai’s Crypto Industry Welcomes New Licensing Regime Amid Global Regulatory Uncertainty

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IN DEPTH: It’s not cheap to set up in the UAE, but crypto firms are thrilled about Dubai’s comprehensive licensing framework. iamsandali breaks down the emirate’s new and extensive crypto rules.

Under Dubai's new rules, all entities planning to offer one or more crypto-related services in the jurisdiction must seek the relevant authorization and licenses. The framework is accompanied by four compulsory rulebooks for service providers and seven activity-based rulebooks that set out requirements by the type of service offered – something Talal Tabbaa, founder of regional crypto exchange CoinMENA praised as being “elegantly designed.

Since the new rules were published, institutional crypto custody provider Hex Trust became one of the first to get an operational go-ahead from the emirate’s watchdog, the Virtual Asset Regulatory Authority . But Dubai’s new rules are a work in progress, its comprehensive nature leaving room for further development over time. The aspiring hub’s new legal framework also sheds light on compliance costs in the region – something that could make it harder for smaller companies to set up in the area.

According to the document, a company looking to offer exchange services must pay an application fee of 100,000 UAE dirham and an annual supervision fee of double that amount. The application fee doesn’t guarantee approval and if the company wants to offer additional services like custody, lending or payments, they have to apply for additional licenses and cover additional supervision fees.

 

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iamsandali Extreme caution of the $GMT currency, I swear it will drop sharply to $0.1000❌🚫📛⛔️🔻🔻

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