This episode is also available as a blog post: https://10leaves.ae/publications/difc/guide-to-providing-money-services-business-licenses-in-the-difc

The DFSA categorises the range of activities that comprise the Money Services Business into two groups: 1) Arranging and Advising on Money Services and 2) Providing Money Services.

Arranging or Advising on Money Service actives come under a Category 4 license, with a minimum base capital of US$ 10,000.

Money Transmission Services also come under a Category 4 license, with a minimum base capital of US$ 140,000.

Providing or Operating a Payment Account, executing Payment Transactions or Issuing Payment Instruments form the core of a Category 3D license, with a minimum base capital of US$ 200,000.

Issuing Stored Value, in which a firm can issue payment cards to make payments to third-party providers, comes under a Category 3C license, with a minimum base capital of US$ 500,000.

Due to the higher risks associated with these activities, the DFSA places higher entry-level requirements  and restrictions on the license itself.

Chances are that the first point of entry be through the DFSA Innovation Testing License, rather than a full-scale application. This is however, decided on a case-to-case basis.

You can also setup in the D I F C with a D I F C Innovation License, which is for non-regulated technology startups.

Such a license encourages startups to establish a presence in the region, employ staff and prepare for regulation by then applying to the DFSA for regulatory approvals.

You cannot however, carry out regulated activities until a Financial Services Permission has been obtained.