Scamming unqualified consultants can prompt you to regulatory mistakes- things to remember while running your UAE crypto company.

All aspiring crypto traders want to come to the UAE. The advanced nation is also a global hub of crypto innovation.  

Entrepreneurs in the field have hordes of benefits that they wouldn’t get anywhere else. Some of them are zero income tax with low corporate tax. Even regulatory frameworks are transparent and friendly.  

What went wrong?  

Below this apparent success pitch, there is an unnerving truth. Many founders don’t know the basics of the crypto trading business here. Mostly they are misled by misfits posing as experienced consultants.  

Entrepreneurs meeting fraudsters  

The company formation is no big deal in the UAE. Easily a handful of fraud consultants and service providers can create a setup. Meanwhile, they can get their glossy and flamboyant flexes ready. 

All this pomp and show is to attract novice crypto traders planning to pitch their business in the UAE. And once your regulatory structure goes wrong, you don’t stand a second chance in this competitive environment.  

The road to failure  

Most people who fall pray to the fraud consultants find the truth within a few months. First, they encounter the fact that none of their regulatory approvals are original. Or the consultants hid the fact that their approvals never came. 

Why real expertise is required in the UAE? 

One thing is for sure. Here, the one-size-fits-all jurisdiction does not apply. The regulatory framework is straightforward but nuanced with various laws. Traders need to understand 3 asset regulators here. These are:  

1. the security and commodities authority regulations 

2. Dubai Virtual Assets Regulatory Authority  

3. and the terms and conditions of the UAE Central Bank  

At the same time, traders can explore the benefits of the two financial free zones of the country- the ADGM and DIFC.  

How Fraud Advise Hits? 

I have never been the victim of poor advice. But I can certainly sense the insurmountable financial loss I would make if I were to follow in the footsteps of fraud advisors.  

Once you do your structure wrong, you will account for a series of penalties, fines, and forced restructuring. Besides, people would question your trading abilities.  

Many founders got their operations frozen for months or a year. That’s a real cost you have to pay if you seek fraud advice from fake consultants.  

Get it right from the start.  

How to avoid fraud? Don’t brainstorm too much. Just work with repeated specialists. Do not pick your experts from the Instagram reels.  

When advisors of some other field try to pitch you crypto exchange knowledge, don’t buy in. Don’t trust any advisor blindfolded. Always enquire.  

Besides, seek help from legal professionals and other consultants who are working in the field of crypto trading already.