How To Get a Crypto License In IFZA?

The growing popularity of cryptocurrencies has grabbed the world’s attention. It creates new opportunities in the digital finance market for both businesses and individuals. As cryptocurrency grows worldwide, Dubai has become a top hub for crypto businesses.

If you want to step into the crypto industry in Dubai, you need to obtain a crypto license to access the crypto market. For that purpose, Dubai’s International Free Zone Authority (IFZA) is a premier destination for obtaining a cost-effective and fully regulated crypto license.

This article explains the step-by-step crypto licensing process and its requirements. We also cover the estimated cost, benefits, and activities allowed under this license. The expert guidance of Now Consultant can help you obtain the IFZA crypto license in compliance with the regulations of the IFZA Authority.

What Is An IFZA Crypto License?

An IFZA crypto license allows businesses to legally operate in Dubai’s cryptocurrency market. This regulatory framework ensures business owners follow UAE laws while conducting crypto-related activities. 

How To Get a Crypto License in IFZA 

The following is a step-by-step process to get a crypto license in IFZA:

1. Determine Business Activities

In the first step, you need to determine the types of crypto-related activities for your business. The types include crypto trading, blockchain applications, crypto advisory services, digital wallets, or tokenization. 

2. Choose a Company Structure

In the second step, you have to choose a suitable company structure. IFZA provides business options, such as a Free Zone Establishment (FZE) and a Free Zone Company (FZCO).

3. Submit Application Documents

The third step is to prepare and submit the necessary documents required for the application. The necessary documents are mentioned below in the requirements section. 

4. Obtain Regulatory Approvals

In the fourth step, you need to obtain approval from the IFZA regulatory authority. Your crypto business must also comply with the UAE’s Anti-Money Laundering (AML) guidelines and other know-your-customer (KYC) regulations.

5. Receive Your Business License

In the fifth step, IFZA will issue your crypto license once all regulatory and financial criteria are met. This license ensures the legal operations of your crypto business in Dubai’s crypto market.

6. Open a Corporate Bank Account

In the final step, you should open a corporate bank account in Dubai based on your crypto business license. The bank account is important for managing transactions and other financial activities. 

Requirements for IFZA Crypto License In Dubai 

To apply for a crypto license in the IFZA Fee Zone, you have to meet the following requirements:

1. Application Form

The first requirement is to submit the application form to IFZA authorities to apply for the crypto trade license. It includes basic information about the nature of your business and the percentage of shareholders.

2. Necessary Documents:

You need to provide the following documents for the crypto license:

• Passport copies of all shareholders.
• Proof of residence (utility bill or lease agreement).
• Passport-sized photographs.
• Memorandum of Association.
• Article of Association.

3. Clear Business Plan 

A clear description of your crypto business plan is mandatory to stay compliant with UAE regulations. The business plan includes crypto activities, targeted market, and minimum share capital according to your business activities.

4. Comply with KYC & AML 

Crypto businesses in IFZA must comply with the Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. It ensures transparency and secure financial transactions of your business.

How Much Does a Crypto License Cost in IFZA?

IFZA offers the cheapest crypto licenses compared to other Free Zones. The following is the estimated cost of a crypto business license in the IFZA Free Zone.

• License Fees: Starts from AED 11,900.
• Office Space: Starts from AED 8,500 annually for shared desks.
• Miscellaneous Fees: Services like documentation, attestations, and banking often cost an additional AED 5,000 – 8,000 

The cost varies depending on your chosen business activities, office space preferences, and shareholding structure.

Benefits of an IFZA Crypto License:

Here are the benefits that come with the crypto business license in the IFZA Free Zone:

• Affordable License Cost: IFZA offers one of Dubai’s most affordable crypto licenses.
• Zero Corporate Tax: There is zero corporate tax for crypto businesses in the IFZA Free Zone. 
• Full Foreign Ownership: You have 100% foreign ownership of your business with an IFZA crypto business license. 
• Global Expertise: With the crypto business license, you can expand your crypto services across the World.

Allowed Activities Under the Crypto License 

Most crypto activities in IFZA Dubai are currently on hold due to Dubai VARA regulations. Contact our team for the latest updates and guidance.

An IFZA crypto license allows a wide range of activities. The key activities include:

• Crypto Trading: Buy and sell digital currencies on approved platforms.
• Develop Blockchain Applications: Create and launch blockchain-based apps.
• Crypto Advisory Services: Guide blockchain projects and crypto investments.
• Wallet Services: Handle and securely store clients’ digital wallets.
• Tokenization: Help businesses turn assets into digital tokens or start their cryptocurrency.

How We Can Help You Get Your Crypto License In IFZA?

If you want to enter Dubai’s crypto market, you must opt IFZA Free Zone. To set up a crypto business in IFZA, you need to hire experts at Now Consultant. Our experts provide end-to-end support to help you obtain your IFZA Crypto License without any errors or delays. 

Throughout the process, our business setup experts ensure compliance with regulations to prevent any risk of penalties or legal issues. Our team ensures that all the license requirements are fulfilled to provide the actual benefits of the crypto business.

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