VARA Crypto License in Dubai

The crypto market has never been as diverse and innovative as it is today. How to navigate in this vast ecosystem? And how to fulfill your business goals with confidence, safety, and hassle-free? The answer is simple: get the right crypto license in the right jurisdiction. One of the most progressive global hubs for crypto projects has been Dubai. With its strategic location, clear regulation, and endless business opportunities, it has been the top-tier crypto destination for decades. What about the license? The most advantageous option for handling digital assets in the UAE is the VARA crypto license. Issued by the local regulatory authority in Dubai, it provides everything you need for long-term expansion in the market. We’ll help you obtain the license and keep your project fully compliant from day one.

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What is VARA Crypto License?

Before diving into the practical steps of getting your VARA license in Dubai, let’s take a closer look at what this permit means in today’s market. In short, VARA crypto license is an official authorization that allows businesses to legally operate in the virtual asset sector. Once licensed, you can perform such activities as cryptocurrency exchanges, custody, transfer and settlement services. This licensing is your gateway to operating in Dubai’s mainland or free zones, except for DIFC. The license’s name comes from the regulator issuing the license, the Virtual Assets Regulatory Authority, or shortly, VARA. It also oversees all the operations related to the use and provision of virtual assets in the region.

Now, why is the VARA licensing in Dubai immensely important? Its main purpose is to ensure that your business operations are lawful and compliant. No matter whether you are looking to launch a new project or already run a crypto company, getting a VARA license is a strategic decision for the long-term stability and credibility of your operations. Compared to regulation in other jurisdictions like offshore islands, loosely regulated markets, or even broader UAE free zones, VARA is focused on meeting specific needs and preventing risks of today’s crypto industry. How does this relate to your crypto project? This framework offers remarkably clear compliance guidelines, strong legal recognition for your business, and greater trust from your diverse client community.

Benefits of Obtaining a VARA Crypto License

The world of crypto is growing rapidly, and securing the right license is the key to staying ahead in this competitive market. In the UAE, the VARA licensing stands as the gold standard for running a crypto business if you aim for long-term growth. Far from merely regulatory formality, obtaining this permit is a powerful advantage for entrepreneurs who want to operate in one of the most forward-thinking and business-friendly hubs in the world. While some licenses seem simpler to get, they often lack the international credibility and investor confidence that come with VARA.

Here is why the world-class business leaders choose to apply for VARA license over other available options:

1. Strong reputation and trust

First things first, the clients’ and investors’ trust is what shapes the good standing of a crypto company in the marketplace. And that’s exactly what VARA licensing provides: it signals your commitment to the highest standards of security, transparency, and ongoing compliance.

Dubai’s VARA authorization is your golden ticket to facilitating trustworthy partnerships, while some other popular destinations like Singapore, with its Monetary Authority of Singapore (MAS) Digital Payment Token (DPT) license, face scrutiny over compliance enforcement and regulatory tightening, as well as slowing down approvals and the ventures’ ability to operate internationally. In contrast, the Emirates’ crypto ecosystem is constantly evolving, and regulation is improving, contributing to smoother operations in the sector.

2. Global recognition

Did you know that Dubai was the first jurisdiction in the world to establish an independent regulatory authority that is exclusively dedicated to regulating virtual assets? This move instantly positioned the Emirates as a strong leader in the global crypto arena. In contrast to a vast number of other licenses, VARA reassures shareholders about security and compliance and signals that your business operates in the most forward-thinking market.

3. Industry-specific regulation

As you already know, VARA is tailored specifically for handling virtual assets, which favorably distinguishes it from traditional financial authorities. In other words, Dubai provides an activity-based regulation style, allowing for precise oversight for each type of virtual asset service. Compared to other jurisdictions, Dubai’s dedicated virtual-asset regulation remains consistent throughout the years and ensures businesses’ adherence to stringent compliance standards. Meanwhile, in the European Union, the Markets in Crypto-Assets Regulation (MiCA) now sets the common framework for crypto-asset service providers and stablecoin issuers across all member states. Overall, MiCA ensures EU-wide legal clarity and harmonisation, while Dubai positions itself as a hub through a regulator solely focused on virtual assets.

4. Strategic location

What other jurisdiction is located at the crossroads of three vast markets at once? Dubai is strategically positioned in the heart of the global financial infrastructure, between Asia, Europe, and Africa. It means much more than mere geography. Rather, the jurisdiction provides crypto companies with fast, reliable access to over two-thirds of the global population within just an eight-hour flight radius. Operating from Dubai means being embedded in the crypto landscape that is already recognized for its regulatory excellence and long-term good standing.

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Types of Activities Allowed Under VARA License

In terms of services that VARA authorizes you to perform, your business will greatly benefit from the flexibility in providing multiple services under a single license in Dubai. Compared with the CASP license within the European Union, VARA gives you more operational adaptability and a broad range of crypto-related activities, including the following:

Advisory;
Broker-dealer services;
Custody;
Exchange;
Lending and borrowing;
Virtual asset management and investment;
Virtual-asset transfer and settlement.

As you seek to obtain your VARA licensing, the great news is that it allows your business to apply for multiple activities under a single overarching license. The only exceptions go for custody services, which require specific governance structures. The crypto regulation in the UAE is regulatory updated, which ensures the most accurate and effective legal framework for crypto businesses. It means that once licensed, you can confidently navigate crypto-specific risks, knowing that your project is protected by this purpose-built regulatory model.

VARA License Compliance Requirements

So you’ve decided to obtain VARA crypto license in Dubai and upgrade your business’s position in the fast-growing crypto market. The next step is to make sure your project is fully compliant with the UAE regulatory standards. Let’s take a closer look at the legal requirements you’ll need to meet to smoothly proceed with your application:

1. Key personnel and legal presence

First of all, to meet the regulatory governance requirements, your business must appoint the key personnel who will oversee the compliance framework and integrity of your project. Those include:

Compliance Officer (CO):

Money-Laundering-Reporting Officer (MLRO):

Both of them will have to pass a rigorous assessment in order to confirm their qualifications, experience, and financial integrity. In addition to hiring the key personnel, you’ll need to have a physical office space in Dubai and operate as a legal entity there or in one of the free zones, except for the DIFC.

Internal security policies

Another important aspect of your compliance is reliable security procedures that will keep your activities safe from fraud and money laundering. Namely, those are the internal risk-management protocols, including the Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. To learn about the security requirements for your particular business, make sure to contact our legal professionals, who will advise you on the risk and compliance measures required for your licensing process.

Minimum share capital

Besides reliable safety policies and key personnel in your company, make sure to meet VARA’s standard for the minimum share capital before proceeding further with your licensing. Currently, the share capital requirements are as follows:

Advisory Services – $27,300 (AED 100,000);
Broker-Dealer Services – $109,000 (AED 400,000) or fixed annual overheads (15%), depending on whichever is higher;
Custody Services – $163,500 (AED 600,000) or fixed annual overheads (25%);
Exchange Services – $408,400 (AED 1,500,000) or fixed annual overheads (25%);
Lending and Borrowing Services – $136,130 (AED 500,000) or fixed annual overheads (25%);
Virtual Asset Management and Investment Services – $136,130 (AED 500,000) or fixed annual overheads (25%);
Settlement and VA Transfer Services – $136,130 (AED 500,000) or fixed annual overheads (25%).

Remember that these fees must be paid fully and maintained during the entire period of your license’s validity. Also, keep in mind that VARA may require higher capital depending on the scale of your company’s services.

Renewal and Ongoing Requirements

Crypto licensing in Dubai involves more than just obtaining the legal permit for your activities. Rather, it’s crucial that you maintain your company fully compliant with the latest regulatory standards from day one and in the years to come. This includes paying the annual supervision fees for each licensed Virtual Asset (VA) activity.

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How to Apply for a VARA Crypto License: Step-by-Step Guide

Now that you know the legal framework of VARA licensing, it’s the right time to look into the practical side of the process, from the initial setup to submitting your Dubai VARA license application and getting the final approval. Here is what your licensing journey will look like:

First and foremost, select a jurisdiction for further company setup according to your business goals. Our legal experts help you make the most informed decision, considering the types of services you plan to provide.
Receive legal consultation and guidelines for the next steps of your licensing journey from legal professionals. We’ll assist you in your business’s compliance assessment, document preparation, and company incorporation. Also, at this stage, we’ll help you reserve the name for your company and get the activity approval.
Next, prepare the full package of required documents for submission. Those generally include the personal documentation for the key personnel, the business plan, internal security protocols, and financial statements. Our experienced team of legal experts will help you collect and polish all the necessary paperwork accurately and on time.
Submit the Initial Disclosure Questionnaire (IDQ) to either the Dubai Department of Economy & Tourism (DET) or a relevant Free Zone Authority. Also, at this stage, you’ll need to pay the initial fees required to commence the application review (typically 50% of the licence application fee).
Once your application is reviewed and approved, you’ll receive an Approval to Incorporate (ATI). This marks a successful completion of the first stage of your licensing journey. Timelines vary and are usually several months, depending on complexity.
Once your company is officially registered, it’s time to proceed with your application for a full VASP license, which is the second stage of the process. We will help you prepare and submit the complete licensing application according to the guidance provided by VARA. As your documents are being reviewed, make sure to stay in touch with the regulator in case additional information or documents are requested. The quicker you respond to their inquiries, the sooner your approval will come. This stage often includes written feedback, document resubmission, and interviews with your key personnel.
As soon as all the licensing requirements are met and your application is reviewed, you’ll have to pay the remaining balance of the application fee along with the first year’s supervision fee. If VARA approves your application, your business will be granted the license. Once licensed, you can apply for visas that allow you and other shareholders or employees to live and work in the UAE, while growing your company in full compliance with the regulatory framework.

What Documents Do You Need for VARA Crypto License

Once you have selected your target jurisdiction and consulted with legal professionals, it’s time to collect and polish all the necessary documentation for the further steps. To get VARA license, here’s the list of key documents to prepare:

Corporate structure and governance

Incorporation certificate;
List of Ultimate Beneficial Owners (UBOs);
Source of funds evidence;
Governance framework;
Local entity website;
Key personnel details;
Financial statements;
Proof of pain-up capital;
Insurance certificates.

Risk and compliance

KYC and AML protocols;
Enterprise risk assessment;
Compliance monitoring program;
Terms and conditions;
Privacy policy;
Marketing policy;
Records management policy.

Technology

Technology infrastructure design;
Technology risk assessment framework and methodology;
Information security policy;
Penetration testing results.

These are the standard required documents you’ll need to provide at the first stage of the licensing process as you get your business officially incorporated in the target jurisdiction. Keep in mind that the final list of documentation depends on your business model and the types of services you aim to provide. That’s why it’s crucial to cooperate with legal experts for the most accurate guidelines and maintain efficient communication with the regulator in case additional paperwork is requested.

Our team prepares the required internal policies and documentation in line with VARA’s rulebooks and assists in communicating with the regulator to ensure all requirements are met. This element of your licensing journey requires precision and the closest attention to detail. With thoughtful planning and professional advice, you will have all your documents in order within just a couple of days.

Costs Associated with VARA License

What about the financial side of obtaining your license? When it comes to planning your budget, keep in mind that the total Dubai VARA license cost consists of several components. Those include the initial application fee, consulting and legal expenses, license renewal and maintenance, and annual supervision costs. It’s also crucial to remember that for the smooth and efficient licensing, all ongoing fees, like the application fee, for instance, must be paid on time.

To get a clear understanding of the core VARA licensing and supervision expenses, you can look through Schedule 2 of the Virtual Assets and Related Activities Regulations 2023. Here is the breakdown of all expenses, summing up to your final VARA license cost:

Advisory, transfer, and settlement services: AED 40,000 (9,574.65 EUR) each;
Exchange, custody, broker-dealer, lending, investment: AED 100,000 (23,936.62 EUR ) each.

These are the expenses associated with the VARA license in all free zones in Dubai, except the DIFC. Navigating the license-related finances can be challenging, but you aren’t meant to figure it all out alone. Make sure to consult with our legal professionals to get the most accurate price list and legal assistance in every step of your licensing journey.

Get Your VARA Crypto License with Expert Support

Now that you know more about the VARA licensing, it’s the right time to upgrade your business and unlock access to one of the world’s most innovative and dynamic digital-asset markets with the right license. With its rigorous requirements, this multi-stage process is best taken with seasoned professional guidance. By partnering with our experienced legal experts at Fintech Harbor Consulting, you will turn your licensing journey into a true game-changing experience for your crypto project and secure your license efficiently, confidently, and with regulatory excellence.

Starting with the initial consultation and compliance assessment, we’ll make sure you have a clear vision of what the next steps on your licensing path will look like. Our lawyers will proactively assist you in preparing and polishing all required documents for each stage of the process, including your company registration and license application. Aware of the potential challenges related to meeting the regulatory standards, we’ll also support you with developing strong internal security policies for your business, proceeding with the fees, and maintaining effective communication with the regulator.

Finally, we offer ongoing assistance in keeping your project fully compliant from day one of your operations and into its future, updating you on the relevant changes in the crypto landscape. With every detail taken care of, you can focus on what matters most: building and growing your crypto enterprise in such an innovative destination as Dubai.

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FAQ

What is a VARA crypto license?

The VARA crypto license is the official authorization for companies offering crypto-related services in Dubai. This document is issued by VARA, or the Virtual Assets Regulatory Authority, which is the government body in Dubai that oversees all crypto activities in the region. They establish the rules and regulations to protect investors and make sure the market remains fair and transparent.

Who needs a VARA crypto license in Dubai?

All crypto businesses in Dubai need a VARA license to show they are operating legally and responsibly. Once licensed, your business is eligible to offer services in crypto exchanges, broker-dealers, lending, borrowing, and advisory. The VARA license ensures that all crypto companies adhere to strict regulatory standards, creating a secure and transparent environment for everyone engaged in the crypto ecosystem.

What are the main requirements to obtain a VARA license?

To get your VARA license, your business must meet a strict set of requirements designed to ensure financial stability, consumer protection, security, and transparency. The specific regulatory details can slightly vary depending on the type of services you plan to offer. However, the key requirements include the following:

The minimum capital requirements:
- Advisory Services – $27,300 (AED 100,000);
- Broker-Dealer Services – $109,000 (AED 400,000) or fixed annual overheads (15%), depending on whichever is higher;
- Custody Services – $163,500 (AED 600,000) or fixed annual overheads (25%);
- Exchange Services – $408,400 (AED 1,500,000) or fixed annual overheads (25%);
- Lending and Borrowing Services – $136,130 (AED 500,000) or fixed annual overheads (25%);
- Virtual Asset Management and Investment Services – $136,130 (AED 500,000) or fixed annual overheads (25%);
- Settlement and VA Transfer Services – $136,130 (AED 500,000) or fixed annual overheads (25%);

Keep in mind that if your company is applying for multiple activities, the capital must be calculated individually for each one, and the total must be the combined amount for each activity.

Rigorous assessment of the key personnel, including a compliance officer (CO) and money-laundering-reporting officer (MLRO);
A physical office space in Dubai’s free zone, except for DIFC;
Compliance and risk management:
- Anti-Money Laundering (AML);
- Know Your Customer (KYC);
- Enterprise risk assessment;
- Compliance monitoring program;
- Terms and conditions;
- Privacy policy;
- Marketing policy;
- Records management policy.

How much does a VARA crypto license cost?

As you plan to secure your business with a VARA crypto license, here is the breakdown of all the costs associated with it:

Application fee: Depends on the types of Virtual Asset (VA) services you provide:
- Advisory, transfer, and settlement services: AED 40,000 (9,574.65 EUR) each;
- Exchange, custody, broker-dealer, lending, investment: AED 100,000 (23,936.62 EUR ) each.
License extension: Applies to each added activity if you’re applying for more than one VA service.
Annual supervision fee: Applies to each licensed VA activity.

For hassle-free and smooth licensing, make sure to pay all ongoing fees fully and on time. Figuring out the license-related expenses can indeed be challenging, but the great news is that you aren’t meant to navigate through it all alone. It’s highly recommended to consult with our team of legal professionals in order to get the most accurate price list and legal support with every step of your licensing process.

How long does it take to obtain a VARA crypto license?

The timeline for obtaining your VARA license in Dubai, from the initial consultation to getting your application’s final approval, can vary significantly, depending on the completeness of your documents, business model, and the scope of services you plan to provide. In particular, the company incorporation stage typically takes a few weeks to complete. Meanwhile, the revision of your application and documents can take from several months, depending on the abovementioned factors. To ensure your licensing process goes smoothly and without delays, our legal experts will guide you through every detail from start to finish. We’ll assist you in your company setup, compliance, communication with the regulator, document preparation, license maintenance, and more.

Is the VARA license valid across all Dubai zones?

The short answer is no, the VARA license isn’t valid across all of Dubai’s zones. On the one hand, any crypto business operating in Dubai’s mainland or free zones must obtain the VARA license. On the other hand, there is one major exception to this rule: the Dubai International Financial Centre (DIFC). It is a special economic zone with its own independent legal framework. Therefore, it has a separate regulatory authority, the Dubai Financial Services Authority (DFSA), which applies its own rules for managing and overseeing the virtual assets.