Proprietary Crypto Trading License in the UAE

Trade crypto with your own funds legally in the UAE. Open proprietary trading company in Dubai free zones at affordable prices.

A proprietary crypto trading license in the UAE allows companies to trade digital assets using their own capital, without managing client funds or operating as a crypto exchange. This license enables a company to establish a proprietary desk in the UAE, engage in buying and selling cryptocurrencies on exchanges, and independently manage its capital.Where to Obtain a Proprietary Crypto License

Proprietary crypto trading is legal in the UAE, with varying requirements based on the jurisdiction. Licensing is available in a limited number of zones:

  • Financial Free Zones:
    • DIFC (Dubai International Financial Centre)
    • ADGM (Abu Dhabi Global Market)
      These zones have their own regulators (DFSA and FSRA, respectively).
  • Non-Financial Free Zones:
    • RAK DAO
    • DMCC
      These offer more simplified setups for proprietary trading.

Practically, RAK DAO and DMCC are often more accessible due to their simpler requirements and faster registration processes.Specific Zone Details

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RAK DAO:

A new digital asset-focused free zone, RAK DAO permits proprietary crypto trading without a VASP license. It has no minimum share capital, registers in 1–2 weeks, and accepts flexi-desks. This makes it ideal for individual traders or small teams using only their own funds, offering minimal requirements and low startup costs.

DMCC:

DMCC provides an official license category: “Proprietary Trading in Crypto Commodities.” This license is for companies trading crypto with their own capital. DMCC is highly regarded by banks and global exchanges, facilitating corporate account opening and partnerships with liquidity providers. It requires a minimum capital of 50,000 AED and mandatory annual auditing, making it suitable for scaling and institutional-grade operations.What is a Proprietary Trading Company and Why Set One Up?

Reasons to Establish a Proprietary Trading Company in the UAE:

  • To legalize crypto trading activities.
  • To open a UAE corporate bank account.
  • To obtain UAE residency visas.
  • To optimize taxes under the UAE’s favorable tax regime.

Advantages of a Proprietary Crypto Trading License in the UAE

  • Trade under your company’s name, not as an individual.
  • No VASP registration required.
  • Affordable setup with minimal ongoing costs.
  • A physical office is not mandatory (a flexi-desk suffices).
  • RAK DAO offers banking support.
  • UAE corporate tax (9%) only applies to annual profits above AED 375,000.

    This license is the simplest way to legalize crypto trading in the UAE, allowing you to use your company’s capital and spend profits without special financial regulatory approvals. However, managing client funds or offering financial services to others is prohibited.

 

  • For those interested in setting up a crypto exchange in the UAE, it’s a more complex endeavor requiring extensive approvals, regulatory compliance, and substantial investment, due to services like custody, KYC, and AML policies. Approval from regulators like VARA (Dubai) or FSRA (Abu Dhabi) would be necessary. If involved in digital assets or blockchain solutions, consider a digital asset license in the UAE.Requirements for a Proprietary Crypto License

    • Share Capital:

      • Not required in RAK DAO.
      • From 50,000 AED in DMCC.
    • Office: Not required; flexi-desk included in both zones.
    • Documents: Passport, business plan, KYC forms.

    Legal and Regulatory Considerations

    Operating a crypto trading business in the UAE necessitates proper licensing and adherence to local laws. Non-compliance can lead to fines, account freezing, or criminal liability. A licensed proprietary trading company in the UAE ensures transparency, access to financial services, and legal protection.

Regulatory Authorities for Crypto-Related Activities:

 

VARA (Virtual Assets Regulatory Authority)

Regulates VASP activities in mainland Dubai, including exchanges, custody, and brokers.

 

FSRA (Financial Services Regulatory Authority)

Oversees digital assets in ADGM, including exchanges and trading venues.

DFSA (Dubai Financial Services Authority)

Supervises tokenized asset activities within DIFC.

Prop trading licenses issued in RAK DAO and DMCC are not subject to oversight by VARA, FSRA, or DFSA, provided they do not involve third-party funds or financial services.

How to Trade Cryptocurrencies in the UAE with Your Own Money (Proprietary Trading)

You can legally trade crypto in the UAE using:

  • Centralized exchanges: Binance, Bybit, OKX, Kraken, Coinbase.
  • OTC platforms: Binance OTC, FalconX, Copper.
  • Algorithmic or HFT platforms.
  • DeFi (DEXs): Uniswap, Curve, dYdX.

Costs and Timelines

RAK DAO:

  • Setup cost: From 36,000 AED (includes license, residence visa, and registration fees).
  • Capital requirement: None.
  • Setup timeline: 1–2 weeks.

DMCC:

  • Setup cost: From 50,000 AED (includes license, residence visa, and registration fees).
  • Capital requirement: 50,000 AED.
  • Setup timeline: 2–4 weeks.

RAK DAO is suitable for lean teams and solo traders, while DMCC is better for scaling businesses requiring bank credibility and a globally recognized license.Step-by-Step Licensing Process

  1. Select Jurisdiction: Choose RAK DAO (faster, simpler) or DMCC (recognized, scalable).
  2. Define Activity: Confirm trading only with own funds.
  3. Prepare Documentation: Business plan, shareholder passport copies, KYC forms.
  4. Submit Application: Apply through the free zone portal or a consultant.
  5. Receive Initial Approval: Subject to due diligence and activity confirmation.
  6. Sign Documents & Register: Incorporate the company and receive the license.
  7. Open Bank Account: Apply for a UAE bank account with license and incorporation documents.
  8. Start Trading: Connect your entity to exchanges and begin operations.

Why Partner with Ht360 Business Setup?

Navigating the process of establishing a crypto prop firm in the UAE can be challenging. Ht360 Business Setup assists in:

  • Choosing the appropriate free zone for your objectives.
  • Managing the entire process from business plan to final approval.
  • Assisting with opening UAE bank accounts, including digital-friendly options.
  • Providing support for renewals, compliance, and business scaling.

RAK DAO vs DMCC: Proprietary Crypto Trading License Comparison

Feature

RAK DAO (Ras Al Khaimah Digital Assets Oasis)

DMCC (Dubai Multi Commodities Centre)

License Type

Proprietary Crypto Trading (no VASP required)

Proprietary Trading in Crypto Commodities

Regulatory Oversight

Independent RAK DAO authority (non-financial zone)

DMCC Authority (non-financial zone)

Setup Speed

1–2 weeks

2–4 weeks

Share Capital Requirement

None

Minimum AED 50,000

Setup Cost (Approx.)

From AED 36,000

From AED 50,000

Office Requirement

Flexi-desk accepted

Flexi-desk accepted

Bank Account Access

Supported by partner digital banks

Widely accepted by local and global banks

Audit Requirement

Not mandatory

Annual audit mandatory

Ideal For

Individual or small-team traders using own funds

Institutional traders or scaling crypto firms

Recognition Level

Emerging digital asset hub

Globally recognized free zone

Taxation

9% corporate tax on profits above AED 375,000

9% corporate tax on profits above AED 375,000

VASP License Needed

Not required

Not required

Best For

Fast, affordable entry into UAE crypto market

Long-term, bank-compliant operations
  • Choose RAK DAO if you want speed, simplicity, and low cost for a personal or small trading setup.

  • Choose DMCC if you need credibility, banking reliability, and scalability for institutional operations.

FAQ’s

A proprietary crypto trading license allows companies to legally trade cryptocurrencies using their own capital in the UAE. It’s distinct from exchange or broker licenses since it doesn’t involve managing client funds. Holders can operate trading desks under their company name in free zones like RAK DAO or DMCC.

You can obtain this license in both financial and non-financial free zones:

  • Financial Free Zones: DIFC (DFSA), ADGM (FSRA).

  • Non-Financial Free Zones: RAK DAO, DMCC — ideal for crypto proprietary trading due to simpler processes and faster approvals.

RAK DAO offers a fast, low-cost setup with no minimum capital, allowing individuals and small teams to trade using their own funds. Registration takes 1–2 weeks, and a flexi-desk option is accepted, making it the easiest entry point for crypto traders.

DMCC provides the official activity “Proprietary Trading in Crypto Commodities.” It’s recognized internationally, supports bank account openings, and requires AED 50,000 in share capital. It’s suitable for institutional or scalable crypto trading operations.

Yes. Proprietary crypto trading is fully legal when conducted under a valid free zone license. Firms must trade with their own funds and avoid handling third-party money to remain compliant with UAE financial laws.

  • RAK DAO: No minimum capital, fast setup.

  • DMCC: AED 50,000 capital, annual audit required.

  • Both require a business plan, KYC, and shareholder documents.
  • RAK DAO: 1–2 weeks.

  • DMCC: 2–4 weeks.
     Timeframes depend on documentation and bank account approval.
  • 100% legal crypto trading.

  • Low corporate tax (9% on profits above AED 375,000).

  • No VASP registration required.

  • Residency visa eligibility.

  • Flexi-desk office option.

  • Access to UAE banking and global exchanges.

  • No. Proprietary licenses allow trading only with company funds. Managing client money, offering investment advice, or operating as an exchange requires a VASP or financial license regulated by VARA, DFSA, or FSRA.

    • Select the right jurisdiction (RAK DAO or DMCC).

    • Prepare documents and complete licensing.

    • Set up compliant bank accounts.

    • Manage renewals and compliance post-setup.