Dubai VARA License
Your Gateway to Global Digital Finance Innovation
Navigating the dynamic world of virtual assets in Dubai is now more straightforward with VARA. As the world’s first independent regulator dedicated solely to virtual assets, VARA sets a new standard in digital finance by offering clear regulatory guidelines, robust anti-money laundering measures, and a supportive legal framework. This streamlined process empowers Virtual Asset Service Providers to operate securely and efficiently, positioning your business for long-term success in one of the globe’s most dynamic financial hubs.
- Regulatory Expertise: We understand VARA inside and out. From its core objectives to its detailed compliance requirements. We’ll guide you through every step, ensuring that your business model aligns with Dubai’s pioneering digital asset standards.
- Comprehensive Documentation & Compliance: From compiling your business plan and financial overviews to finalizing AML/CFT policies and risk management frameworks, our one-stop service covers every detail of the VARA application process.
- Post-License Operational Support: Beyond the initial approval, we offer ongoing support—from compliance updates and audits to introductions to banking and payment partners—helping you stay ahead in the competitive digital finance arena.
Ready to become a digital finance leader in Dubai?
The Virtual Assets Regulatory Authority (VARA), established in early 2022, is the world’s first independent regulator dedicated solely to virtual assets. VARA’s mandate is to:
- Promote Dubai as a regional and international hub for virtual assets.
- Enhance the emirate’s competitive edge in the digital finance space.
- Foster a robust digital economy through secure and effective regulatory oversight.
- Legal Transparency:: Benefit from well-defined legal frameworks that emphasize anti-money laundering (AML) and cybersecurity standards—building a solid foundation of trust and credibility.
- Investor Confidence: A VARA license signals adherence to stringent regulatory standards, enhancing credibility and attracting both local and international investors.
- Strategic Location:: Dubai serves as a critical bridge between Asia and Europe, positioning your business at the heart of global trade and finance.
- Supportive Regulatory Environment: The UAE’s forward-thinking policies welcome foreign entities and encourage innovation, making it easier for you to scale and succeed.
A VARA license empowers your business to operate across various virtual asset activities. Here’s what VARA covers:
| 1. | Advisory Services | Offering expert advice on virtual asset investments and strategies. |
| 2. | Broker-Dealer Services | Facilitating the buying and selling of virtual assets by transmitting orders, accepting orders, and matching transactions. |
| 3. | Custody Services | Providing secure storage solutions for virtual assets, ensuring their safekeeping. |
| 4. | Exchange Services | Operating platforms for trading virtual assets—including matching orders and conducting asset conversions. |
| 5. | Lending & Borrowing | Enabling the leveraging of digital assets through structured lending and borrowing solutions. |
| 6. | Management & Investment | Managing investment portfolios that include virtual assets and providing staking services. |
| 7. | Transfer & Settlement | Overseeing the transfer and settlement processes for virtual asset transactions. |
Capital requirements vary by service and are calculated either as a fixed USD/AED amount or as a percentage of fixed annual overheads:
| 1. | Advisory Services | Capital: USD 27,300 (AED 100,000) |
| 2. | Broker-Dealer Services | With VARA-Licensed Custodian: USD 109,000 (AED 400,000) or 15% of fixed annual overheads Without VARA-Licensed Custodian: USD 163,500 (AED 600,000) or 25% of fixed annual overheads |
| 3. | Custody Services | Capital: Higher of USD 163,500 (AED 600,000) or 25% of fixed annual overheads |
| 4. | Exchange Services | VARA-Licensed VASP for Custody: Higher of USD 218,000 (AED 800,000) or 15% of fixed annual overheads Other Cases: USD 409,000 (AED 1,500,000) or 25% of fixed annual overheads |
| 5. | Lending & Borrowing | Capital: Higher of USD 136,300 (AED 500,000) or 25% of fixed annual overheads |
| 6. | Management & Investment | VARA-Licensed VASP for Custody: Higher of USD 76,300 (AED 280,000) or 15% of fixed annual overheads Other Cases: USD 136,300 (AED 500,000) or 25% of fixed annual overheads |
| 7. | Transfer & Settlement | Capital: USD 136,300 (AED 500,000) or 25% of fixed annual overheads (whichever is higher) |
The following is a non-exhaustive list of documents required for a VARA license application. Through the process of licensing VARA may require further documentation to be supplied.
| 1. | Corporate Structure and Governance | Certificate of entity incorporation (including a physical office), List of UBOs with proof of ID, Details of all senior management, control function heads, board of directors (at least 1 director, can be foreigner), Organizational structure, Governance framework, Regulatory Business Plan, Financial Projections, Source of funds evidence, Proof of paid-up capital, Reserve account report, Succession plan, Wind-down plan, etc |
| 2. | Risk and Compliance | Enterprise Risk Management framework, Compliance manual, Compliance monitoring program, AML/CFT policy and procedures, Anti- Bribery and Corruption (ABC) policy and procedures, Outsourcing policy, Conflicts of interest policy, Privacy policy, Marketing policy and plan, Market conduct policy, VA assets analysis, etc |
| 3. | Technology | Technology infrastructure design, Technology risk assessment framework and methodology, Business Continuity Management and IT Disaster Recovery Plan, Key and wallet management policy, UAE public keys and wallet addresses, Information security policy, Penetration testing results |
| 4. | Others | (Applicable for certain VA activities only) Virtual Asset white paper, Proprietary Trading supporting information, DeFi activities supporting information, VA payment supporting information |
Step 1: Company Formation
Approximately 1 month We assist in forming your UAE entity.
Step 2: VARA Initial Approval
Approximately 2 months We prepare the necessary documents including company details to obtain initial approval by VARA before the license application.
Step 3: Submission & VARA Final Approval
Approximately 5 months We handle the entire submission process and maintain communication with VARA until approval.- Costs: Expect expenses for company formation, AML/KYC compliance solutions, and professional support. Contact us for a detailed estimate.
- Timeline: Registration typically takes 8-10 months, depending on the complexity of your operations and document readiness. We work to expedite the process to minimize delays.
Embrace the future of digital finance with a VARA license. Our comprehensive, end-to-end support ensures that you not only achieve regulatory approval but also thrive in Dubai’s dynamic virtual assets ecosystem.
Switzerland
Renowned for its strong reputation and offering the most comprehensive functionality for crypto services.
Canada
A cost-effective license to conduct both payment and crypto activities, making it attractive for new market entrants.
El Salvador
A pioneering country in the adoption of Bitcoin as legal tender, fostering crypto-friendly opportunities.
Poland
Known for a relatively easier licensing process.
Solvenia
A stable jurisdiction with a longer transitional regulatory period (from VASP to CASP) until July 2026.
Czech Republic
A growing hub for fintech innovation.
1. What is the Dubai VARA License?
The Dubai VARA License is an official regulatory authorization issued by the Virtual Assets Regulatory Authority (VARA) that enables Virtual Asset Service Providers (VASPs) to operate within Dubai’s dynamic digital finance ecosystem. It establishes clear compliance requirements, robust anti-money laundering measures, and a secure operating framework for virtual asset activities.
2. What are the VARA requirements for obtaining a crypto license in Dubai?
To secure a VARA license, businesses must meet stringent requirements that include:
- Comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
- Detailed business plans and financial projections.
- Robust risk management frameworks.
- Submission of extensive corporate governance and technology infrastructure documentation.
Our team can guide you through every step of this process to ensure full compliance.
3. Which virtual asset activities are covered under the VARA License?
A VARA License covers a broad spectrum of activities, including:
- Advisory Services: Providing expert advice on virtual asset investments and strategies.
- Broker-Dealer Services: Facilitating the buying, selling, and matching of virtual asset transactions.
- Custody Services: Offering secure storage solutions for digital assets.
- Exchange Services: Operating platforms for trading virtual assets.
- Lending & Borrowing: Enabling structured lending and borrowing of digital assets.
- Management & Investment: Managing investment portfolios that include virtual assets, including staking services.
- Transfer & Settlement: Overseeing the processes for transferring and settling virtual asset transactions.
4. What are the capital requirements for various VARA-licensed activities?
Capital requirements vary based on the type of virtual asset activity and are determined either as a fixed amount in USD/AED or as a percentage of fixed annual overheads. For example:
- Advisory Services: USD 27,300 (AED 100,000)
- Broker-Dealer Services: Ranges from USD 109,000 (AED 400,000) to USD 163,500 (AED 600,000) depending on whether a VARA-licensed custodian is used.
- Custody, Exchange, Lending & Borrowing, Management & Investment, and Transfer & Settlement: Each service has specific capital thresholds.
For detailed figures, please refer to our capital requirements section.
5. How long does the VARA licensing process take?
The overall process typically takes between 8 to 10 months and consists of three main stages:
- Step 1: Company Formation: Approximately 1 month.
- Step 2: VARA Initial Approval: Around 2 months, during which initial documents and company details are reviewed.
- Step 3: Submission & Final Approval: Roughly 5 months, during which the complete application is submitted and final approval is secured.
6. Can I apply for a VARA license if my company is not initially based in the UAE?
Yes, you can begin the VARA application process as a foreign entity. However, you will need to establish a local UAE entity to fully meet VARA’s regulatory requirements. We provide comprehensive support to assist with local company formation and governance.
7. Can I apply for a VARA license without being physically present in UAE?
Yes, physical presence is not mandatory. We can guide you through the application remotely, collecting the necessary documents and submitting them on your behalf.
8. What ongoing compliance requirements must I meet after obtaining a VARA license?
Post-approval, ongoing compliance includes:
- Regular updates and reviews of AML/CFT policies.
- Routine compliance audits and risk management assessments.
- Timely reporting of any suspicious transactions and maintaining adherence to evolving regulatory standards.
- Our team offers continuous operational and compliance support to ensure you remain in line with VARA’s guidelines.
9. What are the differences between VARA and other regulatory frameworks like those in Canada or Abu Dhabi Global Market (ADGM)?
While frameworks in Canada (for MSBs) or ADGM cater to different aspects of financial services and crypto businesses, VARA is distinct in its sole focus on virtual assets. VARA’s regulatory framework is tailored specifically to the needs of digital finance, with specialized guidelines that promote secure and innovative virtual asset operations in Dubai.
10. How does VARA handle applications from existing virtual asset service providers?
VARA categorizes applicants based on their operational status:
- Category A: Applicants in the process of securing an MVP license.
- Category B: Legacy VASPs that must transition under VARA supervision.
- Category C: New applicants or existing providers seeking additional activities. A gap analysis is typically conducted to ensure that all outstanding requirements are met.
Previous
Next
CryptoLicence specializes in simplifying the registration and licensing process for crypto businesses in El Salvador and other global markets. We are committed to helping crypto businesses, startups and investors navigate complex regulatory landscapes with ease, ensuring full compliance and smooth market entry.
With in-depth knowledge of key markets, we provide tailored compliance solutions for businesses in regions such as Hong Kong, Singapore, Malaysia, Europe and North America. Our expertise spans popular licenses, including the Czech Republic VASP license, Swiss SRO, Polish VASP, and Salvadoran cryptocurrency licenses. Our global network and understanding of local practices give your business a competitive edge.
We recognize the unique challenges international startups face, from navigating regulations and cross-border compliance to overcoming cultural and language barriers. CryptoLicence is here to offer end-to-end support, from interpreting the latest regulations to providing comprehensive compliance solutions. Our goal is to make the licensing process seamless, empowering you to expand your crypto or FinTech venture in El Salvador and beyond.
Sheldon | Director
Sheldon is a seasoned FinTech professional with 7 years of experience specializing in cross-border payments and cryptocurrency licensing, spanning from the web2 to web3 era. He has successfully managed over 30 projects, delivering expertise in payment and cryptocurrency license applications. With a strong network of strategic partnerships, Sheldon brings valuable connections and resources to every endeavor.
Connect with Sheldon on LinkedIn
Jing C | Consultant
Jing is a skilled professional specializing in project management for regulatory compliance and financial institution business development. Currently handling licensing requests in Czech and Switzerland, he also brings a strong legal background in dispute resolution to his work.
Connect with Jing on LinkedIn
Boo | Consultant
Boo offers expertise in handling UK API and Hong Kong MSO license applications, as well as maintaining the Poland VASP license. With his previous experience as an analyst at a family office VC fund, he brings a valuable skill set to the firm.
Connect with Boo on LinkedIn
Cing | Consultant
Cing Hui is a corporate and commercial law specialist with expertise in overseas company formation, customized business solutions, and legal counsel. She currently specializes in MSB (Money Service Businesses) license applications for Canadian and American entities.
Connect with Cing on LinkedIn
