DMCC CRYPTO LICENSE - Crypto firms now able to set up in Dubai free zone

[Fred]

https://www.khaleejtimes.com/business/local/crypto-firms-now-able-to-set-up-in-dubai-free-zone
Following this news a lot of retail investors that where looking for a Crypto/Fiat Cashout Solution contacted us recently about the DMCC Crypto License.

To make things more clear we want to elaborate on this News to bring some light into the dark.

The DMCC Crypto License is available for:

1. Exchange
2. Fundrasing Platform Operator (ICO)
3. Custody Services
4. Brokerage

The DMCC Crypto License is not available for:

1. Crypto/Fiat Cashout
2. Banking with UAE Banks
3. Trading
4. OTC

DMCC Crypto License doesn't target Retail Crypto Investors that are looking for cashing out there Crypto Holdings to Fiat.

DMCC is targeting Professsional Crypto Firms for running an Exchange, ICO, Custody Service or Brokerage and the Fees reflecting this.

Please note that the minimum share capital will be paid up.

There are plenty of options to build a reliable Crypto/Fiat Cashout Solution we are happy to help with however the DMCC Crypto License is non of these.

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[troubled soul]

Thanks for this info.
So much confusion around this.
In short, this applies to the businesses where Traditional bank account︄ not needed.
Only for Crypto related business.

 

[khinkali]

This is deeply disappointing, given that the DMCC was‍ established to be a hub for global commodities trade!

Does UAE have a solution for⁠ trading (e.g. market making; exchange liquidity provision) on own account and/or for others?

 

[troubled soul]

I think they⁠ have, If I understand your query
I attach the PDF.
Hope this help

 

[khinkali]

@azb1 I am‌ not sure that this covers crypto trading.

It is quite frustrating that they keep announcing‍ things like "Crypto Valley" and "Crypto Centre" with zero information. For example last week they⁠ sent this video to their mailing list. Perhaps the bespoke licences from SCA will be⁤ useful, but so far we just get nice pictures of the Palm and words like⁣ "innovation" and "future".

 

[troubled soul]

In Dubai, everything is⁣ very complex and Confusing. And Claiming they are very simple and easy to understand.
Like New portal invest.dubai.ae Good Initiative, Simple web Design but very hard to Understand. Forget the⁢ amateur Even professionals have problems understanding things.

 

[life]

just been annouced DAFZA is going to onboard crypto services/licenses soon... Maybe they will be‌ more flexible

 

[troubled soul]

Dubai is on the Path to Become Crypto‍ Capital of the world.

 

[lacomaco]

Crypto is not⁠ a commodity I think...😉

 

[khinkali]

Asset, money, property,‌ currency, security, capital? Define it however you want to tax it. 🙂

My point is that‍ DMCC is supposed to be about trading, yet we can read above that "DMCC Crypto⁠ License is not available for [...] Trading". So many press releases, videos, talk of "innovation",⁤ "hub", "world leader", etc. but very little substance. I really hope that changes.

 

[life]

exactly!!

 

[life]

dmcc issued it's first OTC license yesterday via its⁣ cv labs!!

 

[carz]

would this have any effect on the way people currently otc (to cash out)?‍

 

[life]

not at all.... but im sure the license holder will require‍ some kyc

 

[rjnnnn]

I'm an individual trader looking for cashing out and I was offered this licence by‌ DMCC:

• 6599-92 Proprietary Trading in Crypto-commodities
  

This activity includes the buying and selling (Proprietary Trading)‍ of crypto-commodities developed on distributed ledger technology applications. This activity does not include acting as⁠ an exchange, providing brokerage services, financial services, banking services, payment processing or storage services.

Does anyone actually signed up for this or as Fred said DMCC is not for individual⁤ traders?

 

[bluegiraffe]

I'm wondering if one can get banking⁢ with such a license

 

[rjnnnn]

DMCC says they can't guarantee it but they also gave me an e-mail address‍ of a banker I can talk to and see. You mean corporate account, right?

 

[troubled soul]

Can share the banker name ?

 

[rjnnnn]

I don't really feel‌ comfortable doing this, I'm sorry. I never spoke to him so I can't recommend him‍ or share his details on a public forum. He's from Mashreq. Do you have a⁠ DMCC licence?

 

[Fred]

Mashreq is by far⁠ the most crypto unfriendly Bank from all UAE Banks - even BitOasis the only real⁤ local UAE crypto exchange they don't accept funds from.

So far 1 DMCC Crypto License⁣ was approved in total.

I would love to tell you guys something else as this⁢ topic is pretty time consuming for us with a very high clarification need - however︀ everybody who dealt already with local banks in the UAE and hears Crypto License -︁ already knows the answer and has a laugh.