Cryptocurrency and virtual assets are becoming a big part of Dubai’s business scene. From Web3, NFTs, and crypto trading platforms to NFT projects and blockchain startups, more and more companies are exploring opportunities in this fast-growing space. Entrepreneurs and investors alike are drawn in by Dubai’s business-friendly regulatory climate, world-class infrastructure and its eagerness to embrace next-gen technologies.
To make this industry safe and well-regulated, Dubai established the Virtual Assets Regulatory Authority (VARA), the regulatory body established under Dubai’s Virtual Assets Law (Law No. 4 of 2022) to oversee and license virtual-asset activities.
VARA is responsible for supervising and licensing all businesses that deal with virtual assets in the Emirate. In simple terms, if you want to launch a crypto exchange, offer wallet services, or provide any virtual asset-related activity in Dubai, you need approval from VARA.
If you’re ready to launch your crypto business in one of the world's most innovative cities, getting a VARA license is essential. But where do you start? Here’s everything you need to know:
What Exactly is a VARA License?
A VARA License is the official permit required to operate a business involving virtual assets (like cryptocurrencies and tokens) in the Emirate of Dubai. It's the UAE's way of ensuring that the crypto industry is safe, secure, and operates at a high standard.
Who Issues It?
The license is issued by the Virtual Assets Regulatory Authority (VARA), which was established under the Dubai Virtual Assets Law (Law No. 4 of 2022).
VARA is the dedicated, independent regulator for all virtual asset activities in Dubai (excluding the Dubai International Financial Centre, or DIFC, which has its own regulator). It is the first regulatory body of its kind in the world, positioning Dubai as a pioneer in digital finance governance.
Why is it Important?
The VARA license allows companies to legally operate in Dubai’s virtual asset sector. It’s mandatory for any business involved in activities such as:
- Trading: Operating a crypto exchange or a broker-dealer service.
- Management: Managing client portfolios that include virtual assets.
- Transfer & Custody: Providing secure storage (custody) or facilitating the transfer and settlement of virtual assets.
- Advisory: Offering professional advice on virtual asset investments.
Who Needs a VARA License in Dubai?
Any company or individual involved in virtual assets or cryptocurrency activities in Dubai must obtain a VARA license before starting operations. This rule applies to both local and international businesses looking to tap into Dubai’s fast-growing digital economy.
- Exchange Services: Operating a platform (like a cryptocurrency exchange) that matches buy and sell orders for virtual assets, or exchanges virtual assets for fiat currency (like AED, USD) or for other virtual assets.
- Broker-Dealer Services: Acting as an intermediary to arrange or execute orders for buying/selling virtual assets on behalf of clients.
- Custody Services: Safekeeping and securely managing clients' virtual assets (like their crypto wallet private keys).
- Management & Investment Services: Acting as an agent, fiduciary, or otherwise taking responsibility for managing, investing, or disposing of a client's virtual assets (e.g., running a crypto investment fund).
- Lending & Borrowing Services: Facilitating loans where the assets being lent or borrowed are virtual assets.
- Transfer & Settlement Services: Providing services to facilitate the transfer and settlement of virtual assets between parties or platforms.
- Advisory Services: Offering professional advice or personal recommendations to clients regarding one or more virtual asset transactions or investments.
- Virtual Asset Issuance (Category 1): Issuing certain types of virtual assets, primarily Fiat-Referenced Virtual Assets (FRVAs), which are stablecoins pegged to traditional currencies.
Even startups or foreign firms entering Dubai’s crypto market must comply with VARA’s regulations. Doesn't matter if you’re a new blockchain venture or an established international exchange setting up locally, you’ll need to register and secure the appropriate VARA license before offering any services.
Types of VARA Licenses in UAE
Below are the main types of VARA licenses you can apply for in Dubai and the wider UAE:
1. Advisory Services License
This license is for companies that provide consultation or financial advice related to virtual assets. It covers activities like portfolio recommendations, risk assessments, and investment strategies involving cryptocurrencies or tokens.
2. Broker-Dealer License
If your business facilitates the buying, selling, or trading of virtual assets on behalf of clients, you’ll need a Broker-Dealer License. This includes crypto exchanges, trading platforms, and brokerage firms that connect buyers and sellers of digital assets.
3. Custody Services License
This license applies to entities that safely store and manage clients’ digital assets. Custody providers must have strong security systems, data protection measures, and compliance frameworks to prevent theft or misuse of assets.
4. Exchange Services License
Businesses that operate a platform where users can trade or exchange virtual assets, including cryptocurrencies, stablecoins, or tokens, require an Exchange Services License. This ensures that the exchange follows VARA’s rules for transparency, transaction monitoring, and anti-money laundering.
5. Lending and Borrowing Services License
Companies that offer crypto lending, borrowing, or yield-generating services fall under this category. This license covers activities such as lending virtual assets to users or providing collateral-based borrowing using digital currencies.
6. Transfer and Settlement License
This license is for businesses that enable the transfer, payment, or settlement of virtual assets between parties. It includes blockchain-based remittance platforms and payment service providers that use cryptocurrencies for transactions.
Note: Some businesses may need more than one license, depending on their range of activities. For example, a crypto exchange that also provides custody and advisory services may require multiple approvals from VARA.
Eligibility Criteria for a VARA License in Dubai
Before applying for a VARA license, businesses must meet certain eligibility requirements set by the VARA.Legal Business Presence in Dubai:
The applicant must have a registered business entity in Dubai, either on the mainland or within an approved free zone such as DMCC, DIFC, or DWTC. VARA does not issue licenses to companies without a legal presence in the UAE.
Qualified Management and Key Personnel:
All key individuals, including directors and senior management, must meet VARA’s “fit and proper” criteria. This means they should have relevant experience, a clean track record, and demonstrate financial integrity.
AML and CFT Compliance:
Businesses must have strong systems in place to comply with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) laws. You’ll need to submit an internal compliance policy that details how you’ll monitor transactions and report suspicious activity.
Cybersecurity and Data Protection Measures:
Since virtual assets are digital in nature, VARA requires companies to implement robust cybersecurity frameworks and data protection systems to prevent hacking, data breaches, or unauthorised access to customer funds.
Minimum Paid-Up Capital:
This is a fixed amount that must be deposited and maintained. It varies significantly by license activity. For example, Advisory Services may require AED 100,000, while Exchange Services (without VARA-licensed custody) may require a higher amount or a percentage of fixed annual overheads.
Reserve Assets:
For activities involving client funds (like Custody), the firm must maintain 100% of the value of client liabilities (customer assets) and keep them fully segregated.
Risk Management:
A clear Risk Management Framework must be in place to identify, measure, manage, and monitor all risks associated with virtual asset activities (market, liquidity, operational, and conduct risks).
Step-by-Step Process to Get a VARA License in Dubai
Getting a VARA license in Dubai involves a few structured steps, from identifying your business activity to obtaining final regulatory approval. Here’s a clear breakdown of the entire process:
Step 1: Choose Your Business Activity and Jurisdiction
Start by deciding what type of virtual asset activity your business will perform, such as exchange, custody, or advisory services.
Next, choose where you want to set up - in Dubai Mainland or a Free Zone approved by VARA (like DMCC, DIFC, or DWTC). Your choice of jurisdiction can affect both your application process and operational flexibility
Step 2: Register Your Company
Once you’ve decided on your jurisdiction, proceed with the company registration process. This includes selecting a trade name, preparing the necessary documents, and obtaining a trade license from the respective authority.
At this stage, you’ll define your company’s structure and business objectives related to virtual assets.
Step 3: Receive Approval to Incorporate (ATI)
The ATI permits you to proceed with the formal legal incorporation of your entity and to begin the operational setup, such as leasing a physical office space and setting up corporate bank accounts. Important: The ATI does not authorise you to carry on any Virtual Asset activities.
Note: You will typically be invoiced for and must pay approximately 50% of the total license application fee for VARA to commence its detailed review.
Step 4: Prepare and Submit Required Documents
Once you receive preliminary clearance, you must provide a detailed set of documents, including:- A complete business plan
- AML/CFT compliance policies
- Cybersecurity and risk management framework
- Financial projections and proof of funds
- Details of shareholders, directors, and key personnel
Step 5: VARA Review and Due Diligence
VARA conducts a thorough review of your application, checking for compliance with financial, technical, and legal standards. They may request clarifications, conduct background checks, or ask for additional documents before granting approval.
Step 6: Obtain Final VARA License
Once VARA is satisfied with your submission and the fees are paid (the other 50% of the remaining fee), you’ll receive the final VARA license that authorises you to operate your virtual asset business in Dubai. After licensing, you must continue to meet ongoing compliance requirements, including regular audits and reporting obligations.
Need Help with the Process?
The VARA licensing process involves several legal and technical steps. Partnering with an experienced business setup consultant like Shuraa India can make the process faster, smoother, and fully compliant.
VARA License Cost in Dubai
Getting a VARA license in Dubai is a big step for any crypto or virtual asset business, and it does come with a few costs. The total VARA license cost in Dubai depends on your license type and the scale of your operations.
Main VARA License Fees:
The Virtual Assets Regulatory Authority (VARA) charges different fees based on the type of virtual asset activity you plan to carry out:
- Advisory or Transfer/Settlement Services: AED 40,000 (application fee)
- Brokerage, Exchange, Custody, Management, or Lending Services: AED 100,000 (application fee)
In addition to the one-time application fee, businesses also need to pay an annual supervision or renewal fee, which helps maintain regulatory oversight:
- Advisory or Transfer/Settlement Services – around AED 80,000 per year
- Exchange, Custody, or Broker-Dealer Services – around AED 200,000 per year
Other Costs to Consider:
When budgeting for your VARA license, it’s important to factor in other expenses that come with operating a compliant virtual asset business in Dubai. These may include:
- Compliance and Legal Setup: Creating AML/KYC frameworks, cybersecurity systems, and risk management policies (can range between AED 500,000–600,000 depending on complexity).
- Minimum Share Capital: Some license types require a minimum capital of AED 100,000 or more, depending on the business activity.
- Company Registration Fees: Trade license issuance, name reservation, and registration costs in mainland or free zone.
- Office Space and Local Staffing: Physical office requirements and hiring local compliance officers or management personnel.
- Audit and Reporting Costs: Ongoing financial audits, regulatory reports, and system security checks.
How Shuraa Can Help You Get a VARA License in Dubai?
No doubt, Dubai is one of the world’s most exciting destinations for crypto and virtual asset businesses. With clear laws, strong government support, and a growing digital economy, it’s the perfect time for entrepreneurs to explore this exciting space.
However, getting a VARA license in Dubai can be a bit tricky if you’re doing it on your own. From choosing the right license and jurisdiction to meeting all the compliance and security requirements, there’s a lot to manage. That’s where Shuraa India can make things easier for you.
At Shuraa, we help you with everything - from understanding which VARA license your business needs to preparing and submitting your application correctly. We also make sure you meet all AML/CFT and cybersecurity rules, handle every document, and take care of all follow-ups with the authorities. And once your license is approved, we continue to support you with PRO services and business assistance.
If you’re ready to launch your crypto or blockchain venture in Dubai, let Shuraa make the process seamless and stress-free. Get in touch today!