As a top and well-liked commercial hub, Dubai has been one of the most alluring locations for blockchain technology companies. One of the few nations that has not outlawed using cryptocurrency is this one. Online bitcoin transactions totaling more than $6 billion made Dubai the top cryptocurrency trading hub in the world. The blockchain or cryptocurrency market is a multi-billion dollar industry.
Although the idea of blockchain and cryptocurrencies may be new to some business owners, the Dubai market has already recognized their huge potential. The Digital Currency Regulatory Framework is a new regulation that the UAE government passed to regulate the use of digital currencies. Additionally, it offers guidelines to safeguard investors and guarantee the openness of trading.
Due to its strong brand recognition and exposure, security provided by blockchain technology, cheap transaction fees, 100% business ownership, etc., the bitcoin industry in Dubai attracts entrepreneurs and expats despite its infancy.
Working with a competent Dubai business setup service will make launching a blockchain company uncomplicated. If you are prepared to start a blockchain business and want to benefit from the numerous business opportunities presented by trading, owning, and exchanging cryptocurrencies, then this post is for you. In this article, we'll talk about the blockchain industry in Dubai and how to start a blockchain development company there.
Blockchain- What exactly is it?
Think of blockchain as a shorthand for the more nuanced concept of cryptocurrencies. Briefly stated, Blockchain is a technology that describes a method of digitally recording the details of your cryptocurrency transaction. There isn't a database like it that you have ever seen before. It is a kind of distributed ledger that stores decentralized financial records digitally.
A new block of data is generated each time a transaction takes place, and it comprises information about the cryptographic operation as well as the date and time. This block is nearly impossible to change or hack because it was created using an algorithm.
In blockchain technology, connections between stored blocks are made via cryptography. A new block is formed and joined to the old block when a block runs out of room. As a result, all data is stored in time order.
A Summary of the Blockchain Industry in Dubai
The UAE government encourages company owners in Dubai to launch a blockchain or cryptocurrency business. Additionally, the Dubai Supreme Law Committee and the Central Bank of the UAE support the acceptance of digital currencies as payment methods. Here are some highlights that show how Dubai may be the best place to incorporate your first Blockchain business given the increased interest in the bitcoin industry.
In Dubai, more than 400 blockchain companies are already in operation. It is anticipated that there will be at least 1000 by the end of 2022.
In its recently released Blockchain strategy 2021, the UAE government gives foreign businesspeople special consideration and grants them permission to operate legally in Dubai. In accordance with this strategy, roughly 50% of all government transactions will involve blockchain technology.
The Financial Services Regulatory Authority and Abu Dhabi Global Markets have emerged as the main authorities, offering clear guidelines and standards to support this bitcoin transaction.
A new regulation called the Digital Currency Regulatory Framework is intended to prevent money laundering and safeguard consumers.
One hundred crypto organizations already call the DMCC Crypto Center, which launched in May of this year, home.
And last, Dubai hosts a number of Crypto Expos that emphasize blockchain and cryptographic technology.
Factors to Take into Account Before Starting a Blockchain Business in Dubai
1. Technically savvy
You must be technically competent before starting any cryptocurrency firm, whether you are a developer, marketer, or broker. You must be familiar with the blockchain technology system to work in this field, and each blockchain organization needs a team of technical experts. As a crypto founder, you could be forced to make technical claims even if you don't want to be a developer of cryptocurrencies.
2. Correctly approaching investors
The cryptocurrency industry may seem alluring and lucrative, but investors and company owners alike should be aware of its enormous financial risk. You will need to look for and attract venture capital (VC) firms despite the hazards. An initial coin offering (ICO) can be used to produce your own currency or coin. While there are a large number of blockchain VCs searching for fresh cryptocurrency business opportunities, you must effectively employ your public speaking skills.
3. Openness to Change
Being flexible and open-minded is crucial if you want to be able to adjust to new blockchain advancements. For instance, Ethereum, the second-most popular blockchain technology, was not created at the time but now dominates the cryptocurrency market. You should always be ready to adjust to emerging market trends that result in major market changes.
How Can a New Blockchain Company Be Started in Dubai?
Step 1: Select a suitable company name
Choosing a suitable company name is the first step. There are now guidelines to abide by while choosing a trade name. Your company name should emphasize the essence of your business while being short and distinctive. When selecting a cryptocurrency business name, keep the following guidelines in mind:
It has nothing to do with any names associated with politics or religion.
Don't call anyone a profane or derogatory name.
The registration of your selected business name is still possible Name that won't lower public morale
A designation for the specific economic activity that is acceptable in court
There shouldn't be any mention of a well-known business or even your name as an abbreviation in the name.
Step 2: Select the Proper Economic Zone
Choosing the right jurisdiction in Dubai is essential to the success of your bitcoin business. Each economic zone has a unique set of benefits and drawbacks. If you decide to locate your blockchain company in the Dubai Freezone, you will enjoy no currency restrictions and 100% revenue repatriation. You will be able to tailor your service to any region in the UAE for the Dubai mainland area. You need to obtain a local sponsor if you want to launch a business abroad.
Step 3: Get a crypto license
You must first acquire a trade license from the Dubai Department of Economic Development (DED) in order to operate a legitimate blockchain business in Dubai. The following criteria must be satisfied in order for you to be granted a cryptocurrency license in Dubai.
Display a business plan for cryptocurrencies.
Obtain and complete the DED's commercial license application.
Shareholders are required to provide copies of their current passports.
Show off a spotless cryptocurrency wallet.
Business operations and capital resources must be visible for six to twelve months.
The cryptocurrency or blockchain company operates in the same way as any other trading company in the world of finance. You must adhere to anti-money laundering standards and submit your accounts for auditing in order to demonstrate that your company is properly regulated and following the law. With the support of skilled professionals, the complete business setup process will be easy and clear. You should have enough information from this article to start a blockchain firm in Dubai.