Research and Planning:
Familiarize yourself with ADGM’s regulatory framework for crypto companies. ADGM has specific regulations for operating crypto asset businesses, known as the Crypto Asset Framework.
Understand the various types of crypto activities permitted in ADGM, such as crypto trading, custody, exchange, and token issuance.
Conduct market research to assess the viability and potential of your crypto business in ADGM.
Develop a comprehensive business plan that outlines your company’s goals, operations, target market, and financial projections.
Corporate Structure:
Determine the appropriate corporate structure for your crypto company, such as a limited liability company (LLC) or a branch of a foreign company.
Ensure compliance with ADGM’s company incorporation requirements, including minimum share capital and director/shareholder requirements.
ADGM Registration:
Register your company with ADGM. You can engage with ADGM’s Registration Authority (RA) to initiate the registration process.
Prepare the necessary documents, which typically include the company’s constitutional documents (Memorandum and Articles of Association), directors’ and shareholders’ details, and identification documents.
Pay the applicable registration fees, which vary depending on the type and size of your company.
Licensing Requirements:
Determine the specific licensing requirements based on the nature of your crypto business activities.
ADGM offers two types of licenses that are relevant to crypto companies:
a. Financial Services Permission: Required for activities such as operating a crypto exchange, custody services, or providing financial advice related to crypto assets.
b. Regulatory Laboratory (RegLab) License: Suitable for startups and fintech firms seeking to test innovative crypto-related products or services in a controlled environment.
Prepare the necessary documentation and submit your license application to ADGM’s Financial Services Regulatory Authority (FSRA).
Pay the applicable licensing fees, which depend on the license type and business activities.
Compliance and Due Diligence:
Ensure compliance with ADGM’s anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, which include conducting customer due diligence (CDD) and implementing robust AML/CTF policies and procedures.
Establish adequate internal controls and risk management systems to mitigate operational risks and comply with ADGM’s requirements.
Ongoing Obligations:
Once your crypto company is established and licensed, you will have ongoing obligations to fulfill, including timely submission of financial statements, regulatory filings, and compliance with ADGM’s reporting requirements.
Maintain a good standing with ADGM by adhering to the regulatory framework and promptly addressing any requests or inquiries from ADGM authorities.
For further assistance please contact Al Safar & Partners on +97144221944 – email reception@alsafarpartners.com – www.alsafarpartners.com
Written By:
Ms. Luminita Rizescu – Partner and specialized in Retail Law, Commercial and Rental Disputes, and Will drafting at Al Safar and Partners Law Firm
