Can a shareholder invest cryptocurrency in his company registered in DMCC?

Hello,

As a shareholder, you may be able to invest in your company using cryptocurrency; however, the DMCC has strict regulations regarding cryptocurrency transactions and activities.

If you're simply using cryptocurrency as a form of capital contribution (i.e., converting it into fiat currency before the investment), this may not require specific permissions.

However, direct involvement in cryptocurrency trading, exchange, or related services does require a license from DMCC

Thank you for reaching out with your question.

In DMCC, cryptocurrency investments by a shareholder are possible but come with specific regulatory requirements.

DMCC itself launched a Crypto Centre that encourages blockchain and crypto-related businesses.

However, investing company funds into cryptocurrency would still need to comply with UAE Central Bank regulations and any guidelines issued by the Securities and Commodities Authority (SCA).

You would likely need to ensure proper documentation and legal compliance and may need permission or approvals, depending on the nature of the transaction and the company's existing business activities.

Consulting a legal expert would help ensure you're on the right track to avoid regulatory complications.

I recommend scheduling a consultation so we can review your company's situation and ensure all legal aspects are covered.

Feel free to reach out to me via WhatsApp or phone to discuss further.

Best regards,

Suhail Rana