General information about the Dubai IFZA Crypto License
The IFZA is a free economic zone in Dubai, United Arab Emirates. Founded in 2018 in Fujairah, it moved to the Dubai Silicon Oasis (DSO) where it stands today. This free zone offers many benefits for local and foreign investors, as well as entrepreneurs.

The Dubai IFZA crypto license is aimed at certain business models specifically. It does not allow for the most common crypto activities such as buying and selling crypto, exchange services, or custodial services. Only a handful of crypto activities are possible with the IFZA license: NFT marketplace, proprietary trading, proprietary crypto mining, metaverse services, and blockchain development (as a database and not a crypto ledger).

The IFZA license is granted by the IFZA administration itself, though the process requires the applicant to register with the Dubai Department of Economy and Tourism. The crypto activities are supervised by the Dubai Virtual Assets Regulatory Authority (VARA).

The IFZA license is unregulated, meaning that there is no ongoing supervision once the license has been granted. Nevertheless, AML-CFT laws apply and the licensees are liable for annual reports and auditing.

The minimum share capital depends on the activity and is decided by the IFZA and directly announced to the applicant. The amount will range between 2 and 100 million AED (= between 545,000 USD to 2,720,000 USD).

The process of obtaining a Crypto License in Dubai IFZA
The process to obtain a crypto license in Dubai IFZA is simple and fairly fast. It requires incorporating a company in the IFZA, getting a residency permit for the UBO, and then applying for the license directly to the IFZA administration.

The company formation is done online, thanks to the effectiveness of the IFZA systems. As a very business-friendly economic zone, everything is done in order to assist entrepreneurs in their projects in Dubai. The beneficial owner shall prepare personal documents such as a passport copy, proof of residency, and a certificate of non-criminal record.

Then it is mandatory to register an office within the Dubai Silicon Oasis for the company. There are no requirements for local personnel, but a contact person should be appointed to fulfill the duties of so-called AML officers.

The ultimate beneficial owner shall then apply for a visa in Dubai. The process is made easier for owners of an IFZA company. It also stands to note that, unlike other companies in the UAE, a Dubai IFZA legal entity can be 100% owned by a non-Emirati citizen.

Finally, the application is carried out to the IFZA administration. The licensing process is customized to the needs and to the project of the applicant. Depending on the business activity and its specificities, the IFZA will ask for different documents and information. The share capital required will also be decided at this stage.

Once everything is green-lighted by the IFZA and the licensing fees have been paid, the license is granted.

Different types of crypto licenses in Dubai IFZA
The crypto licenses in UAE IFZA are specific and they only allow for certain activities. It is very important to note that crypto-fiat exchange, crypto-crypto exchange, and custody or wallet services are NOT allowed in IFZA.

The IFZA Register of Business Activities recognizes the following kinds of crypto activities that are authorized:

Proprietary Trading in Crypto-commodities.
And while it requires a business license to be operated, they are not regulated. There is no authority overlooking the crypto companies in IFZA.

Five out of the six crypto activities in Dubai IFZA are currently put on hold, following the issuance of the Dubai VARA regulation. Please get in touch with our consulting team for more information and up-to-date development on the matter.
“Proprietary” in the first line means that the licensed entity is allowed to trade its own funds and crypto. It is not an exchange license. As the last line, it only allows mining crypto in the name of the organization and cannot offer mining as a service.