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VARA license
in Dubai
The Virtual Assets Regulatory Authority (VARA) serves as Dubai’s foremost regulatory body, ensuring a safe and secure environment for businesses engaging in virtual assets.
Virtual assets
Whether running a cryptocurrency exchange, managing virtual asset portfolios, or offering advisory services, obtaining a VARA license is crucial for legitimising and streamlining operations.
The complexities of the licensing process are simplified through tailored solutions that guide businesses through every stage.
Comprehensive support ensures operations are positioned as trusted leaders in the digital asset industry.
About license
Why choose VARA License?
Global recognition
Dubai’s robust regulatory framework ensures international trust and enhances business credibility on a global scale.
Innovative opportunities
Operating under a VARA license enables access to advanced financial ecosystems, fostering growth and innovation in digital assets.
Comprehensive compliance
VARA’s structured guidelines offer businesses a clear path to compliance, reducing risks and enhancing operational efficiency.
How Aston VIP supports clients with VARA license
- Business incorporation
Assistance with registering a legal entity in Dubai, ensuring alignment with regulatory requirements.
- Compliance documentation
Preparing and reviewing business plans, financial documents, and operational policies.
- Office setup
Helping clients secure compliant office spaces to meet VARA’s criteria.
- Application submission
Managing the entire application process, including liaising with VARA officials to ensure a smooth review.
- Personnel sourcing
Identifying and hiring qualified responsible individuals and company secretaries.
- Ongoing advisory
Offering continuous support to help businesses remain compliant and renew their licenses annually.
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Types of licenses offered by VARA
VARA provides a range of licenses to cover all major virtual asset activities. Each license is tailored to specific business models, ensuring that all operations remain compliant with international and local regulations. The available licenses include:
01
Advisory license
Designed for professionals offering strategic guidance and consultancy on virtual asset management.
02
Broker-dealer license
For businesses facilitating the buying and selling of virtual assets on behalf of clients.
03
Custody license
Provides secure storage and management of digital assets, ensuring protection against potential cyber threats.
04
Exchange license
Allows companies to operate platforms that facilitate trading between virtual assets and fiat currencies.
05
Lending and borrowing license
Enables businesses to offer virtual asset-backed loans or facilitate borrowing options.
06
Management and investment license
Tailored for firms handling virtual asset portfolios and offering investment strategies.
07
Transfer and settlement license
Covers businesses that provide transfer and settlement solutions for virtual assets.
08
Virtual asset issuance (stablecoins)
For entities issuing stablecoins and similar digital currencies backed by tangible assets.
Licensed companies in Dubai can add or amend their activities by following the required procedures. Expert advisory services ensure a seamless transition for any such changes.
How to get a VARA license in Dubai
Securing a VARA license in Dubai requires a meticulous approach to business formation and compliance. The process begins with establishing a legal business entity within the Emirate, which is a fundamental prerequisite for applying for the Virtual Asset Service Provider (VASP) license.
01
Business incorporation and setup
02
Compliance and regulatory preparation
03
Submission and review
04
Approval and licensing
The initial phase involves forming a company under Dubai’s jurisdiction. This includes:
- Company incorporation
Registering a legal entity aligned with Dubai’s corporate regulations.
- Office space
Securing a physical office location within the Emirate to fulfil regulatory requirements.
- Local personnel
Employing two responsible individuals who are either UAE residents or UAE passport holders, along with a company secretary.
Establishing these components ensures the business structure complies with VARA’s initial prerequisites.
Simultaneously, the business must prepare a comprehensive set of compliance and regulatory documents, which include:
- Identification and background checks for all key participants.
- Internal policies and procedures for operations and compliance.
- A detailed business plan outlining the nature of the virtual asset activities.
- Financial projections and supporting documentation.
This step also involves opening a corporate bank account in Dubai to deposit the required share capital and to process the fees for pre-approval and licensing applications.
Once the business structure is finalised and all documents are prepared, the application is submitted to VARA. Applicants must adhere to specific rulebooks issued by VARA:
- Core rulebooks
Applicable to all applicants, outlining general regulatory and compliance standards.
- Activity-specific rulebooks
Tailored to the particular virtual asset activities the business intends to undertake.
Applicants are responsible for reviewing and aligning with the relevant rulebooks to ensure full compliance with VARA’s regulatory framework.
After thorough validation and review, VARA issues the VASP license to the company. This license is subject to annual renewal, with the business remaining under VARA’s ongoing supervision to ensure continued compliance with regulatory requirements.
How to get a VARA crypto license in Dubai
Securing a VARA crypto license in Dubai requires a meticulous approach to business formation and compliance. The process begins with establishing a legal business entity within the Emirate, which is a fundamental prerequisite for applying for the Virtual Asset Service Provider (VASP) license.
Business incorporation and setup
The initial phase involves forming a company under Dubai’s jurisdiction. This includes:
- Company incorporation
Registering a legal entity aligned with Dubai’s corporate regulations.
- Office space
Securing a physical office location within the Emirate to fulfil regulatory requirements.
- Local personnel
Employing two responsible individuals who are either UAE residents or UAE passport holders, along with a company secretary.
Establishing these components ensures the business structure complies with VARA’s initial prerequisites.
Compliance and regulatory preparation
Simultaneously, the business must prepare a comprehensive set of compliance and regulatory documents, which include:
- Identification and background checks for all key participants.
- Internal policies and procedures for operations and compliance.
- A detailed business plan outlining the nature of the virtual asset activities.
- Financial projections and supporting documentation.
This step also involves opening a corporate bank account in Dubai to deposit the required share capital and to process the fees for pre-approval and licensing applications.
Submission and review
Once the business structure is finalised and all documents are prepared, the application is submitted to VARA. Applicants must adhere to specific rulebooks issued by VARA:
- Core rulebooks
Applicable to all applicants, outlining general regulatory and compliance standards.
- Activity-specific rulebooks
Tailored to the particular virtual asset activities the business intends to undertake.
Applicants are responsible for reviewing and aligning with the relevant rulebooks to ensure full compliance with VARA’s regulatory framework.
Approval and licensing
After thorough validation and review, VARA issues the VASP license to the company. This license is subject to annual renewal, with the business remaining under VARA’s ongoing supervision to ensure continued compliance with regulatory requirements.
Timeline considerations
The time required to obtain a VARA license depends heavily on the applicant’s readiness and efficiency in preparing the necessary documents and meeting the compliance standards. On average, the process may take between 3 to 6 months, depending on the complexity of the business model and the thoroughness of the application.
Securing a VARA license not only legitimises your crypto business but also opens doors to Dubai’s dynamic financial ecosystem. For tailored assistance throughout the licensing process, expert guidance ensures a streamlined journey into Dubai’s virtual asset market.
VARA License Timeline
Expert support tailored to the unique needs of virtual asset businesses ensures that securing a VARA license is efficient and effective
Contact today to learn more about available services and opportunities.
Start your VARA application today!
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Frequently asked questions
What is the role of VARA in Dubai?
VARA’s primary objective is to regulate and monitor all virtual asset-related activities within Dubai, ensuring a secure environment for both businesses and investors. Its comprehensive framework promotes transparency, protects consumers, and supports the sustainable growth
of the digital economy.
Which businesses need a VARA license?
A VARA license is mandatory for any entity involved in virtual asset services, including exchanges, wallet providers, asset managers, and token issuers. Whether the business operates entirely within the virtual asset space or integrates these services into a broader model, obtaining a VARA license ensures compliance with Dubai’s regulatory standards.
What documentation is required for a VARA license?
To secure a VARA license, businesses must provide:
- A detailed business plan highlighting virtual asset activities.
- Identification documents for all shareholders and directors.
- Proof of address and incorporation documents for the parent company (if applicable).
- Robust compliance frameworks, including KYC and AML policies.
- Financial statements demonstrating operational capacity and readiness.
Thorough preparation of documentation reduces the likelihood of delays or rejections.
What are the KYC and AML requirements for VARA license holders?
VARA license holders must implement rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) measures to prevent illicit activities. This includes:
- Verifying the identity of all clients and stakeholders.
- Monitoring and reporting suspicious transactions.
- Establishing clear policies to ensure compliance with both local and international regulatory standards.
Failure to comply with KYC and AML requirements can result in severe penalties, including the suspension or revocation of the VARA license.
How long does it take to obtain a VARA license?
The timeline for securing a VARA license depends on the nature of the business and the complexity of the application. Generally, it takes between 3 to 6 months, although delays
may occur if the required documentation is incomplete. A streamlined approach ensures a smooth and efficient process, minimising unnecessary delays.
Are there any financial requirements for VARA licensing?
Yes, VARA mandates specific capital requirements based on the nature of the licensed activity. These requirements ensure businesses maintain sufficient financial resources to operate securely and sustainably. Guidance is provided on meeting these requirements, ensuring compliance with all regulatory obligations.
Can foreign businesses apply for a VARA license?
Foreign entities are eligible to apply for a VARA license but must establish a local presence in Dubai, either through a free zone or mainland company. Assistance is provided to foreign
businesses in navigating the legal and administrative processes, from company incorporation to securing office space.
What are the costs involved in obtaining a VARA license?
Costs vary depending on the type of virtual asset activity. Key expenses include application fees, annual supervision fees, and compliance audits. Transparent cost breakdowns help
clients budget effectively and avoid unexpected financial burdens.
What happens if a business operates without a VARA license?
Operating without a VARA license is a serious offence, subject to heavy fines, business suspension, and possible legal action. Ensuring proper licensing protects business reputation and avoids legal repercussions.
How does Aston VIP support VARA compliance?
End-to-end support for VARA compliance is provided, including:
- Preparation and submission of licensing applications.
- Development of robust KYC and AML frameworks.
- Ongoing advisory services to ensure compliance with evolving regulations.
By simplifying the regulatory journey, businesses are positioned for long-term success in Dubai’s thriving digital economy.
VARA license
Additional Information
Who Needs a VARA License in Dubai?
Dubai’s Virtual Assets Regulatory Authority (VARA) mandates licensing for businesses involved in managing or providing services around virtual assets. Any entity operating within Dubai’s virtual asset space needs to obtain this license to comply with local regulations and build trust among investors and partners.
Specifically, VARA license requirements apply to the following types of virtual asset activities:
Virtual asset management and investment services
Crypto exchanges and platforms providing exchange services
Providers offering secure storage through custody services
Firms delivering broker dealer services or similar trading activities
Businesses providing advisory solutions, known as advisory services
Platforms facilitating VA lending, borrowing, or other financial operations
Companies specialising in token issuance or stablecoin solutions
Firms offering settlement services or VA transfer capabilities
It’s important to highlight that both local and international virtual asset businesses must secure a VARA license to operate legally in Dubai. This licensing ensures that all players in Dubai’s digital market adhere strictly to VARA’s established regulatory framework, designed to protect investors and maintain transparency across the sector.
Capital Requirements for Virtual Asset Businesses
One essential part of the licensing process for virtual asset businesses in Dubai is meeting specific capital requirements defined by the Assets Regulatory Authority VARA. Capital thresholds vary based on your chosen business model and the type of virtual asset activities your company plans to undertake.
Below are typical capital requirements aligned with different virtual asset service licenses:
VA Advisory Services: Firms offering advisory services generally face lower capital requirements due to limited direct asset handling. However, detailed disclosure of financial readiness is required.
VA Broker Dealer Services: Broker dealer services typically require higher capital thresholds to manage transactional risks associated with facilitating client trades.
VA Custody Services: Given the higher security obligations and direct asset responsibility, custody services require firms to demonstrate substantial financial stability and operational resilience.
VA Exchange Services: Businesses involved in cryptocurrency exchange services need robust capital reserves due to substantial liquidity obligations.
Precise figures for capital requirements depend on your business model, planned scale of operations, and specific VARA licence type. Applicants are encouraged to submit detailed business plans, clearly outlining how their financial structure meets VARA’s comprehensive framework to ensure compliance.
Who Can You Serve With a VARA Crypto License?
The types of clients your business can serve with a VARA crypto license depend largely on the licence type you choose. Generally, the licences enable businesses to engage with either retail clients, institutional clients, or both.
Firms holding licenses specifically aimed at qualified investors or institutional clients usually offer more sophisticated services such as management and investment services or high-level advisory.
Licenses permitting services to retail clients often cover basic activities, including exchanges, digital wallet services, or virtual asset advisory to broader public audience.
It’s crucial to clearly define your intended client base within your detailed business plan during the application phase. VARA assesses your application thoroughly, considering the client types you’ll serve and ensuring adequate consumer protection measures are in place.
VARA’s "Fit and Proper" Criteria
To ensure the integrity of the virtual asset sector, VARA requires licensed businesses to appoint responsible individuals who meet strict “Fit and Proper” criteria. This measure is part of VARA’s comprehensive strategy to maintain high standards within the industry and protect investors.
Individuals appointed to roles such as directors, senior management, or as a company secretary must demonstrate:
Proven experience and expertise in the virtual asset space or financial sectors.
Clean professional records, with no history of regulatory sanctions or financial misconduct.
Strong understanding of VARA’s regulatory framework, as well as international best practices and local regulations.
Ability to maintain rigorous internal controls and effectively manage risk within the business operations.
Compliance with these criteria is crucial, as responsible individuals hold significant accountability for ensuring ongoing regulatory compliance. Fulfilling VARA’s “Fit and Proper” standards not only smooths your licensing process but also positions your business for sustainable growth and success within Dubai’s dynamic digital economy.
Why Office Space Matters in the VARA Licensing Process
As part of the official licensing process, all applicants must establish a physical office space within Dubai. This is a non-negotiable requirement set by the Virtual Assets Regulatory Authority (VARA) and applies to both mainland and free zone setups.
The office serves as a key part of your legal entity’s operational base and demonstrates a clear presence in the Emirate. It’s not enough to use a co-working desk or virtual address. VARA requires a dedicated and compliant workspace that aligns with the firm’s intended business model and operational scope.
Aston VIP works closely with applicants to ensure all office-related requirements are fulfilled before submission. This includes helping you secure an address that meets regulatory expectations, preparing necessary tenancy documentation, and coordinating with licensing authorities to verify physical presence during application review.
Securing compliant office space early in the process reduces delays, builds trust with the regulator, and forms the foundation for your virtual asset service approval.
Detailed Cost Breakdown for Your VARA License Application
Understanding the full financial scope of a VARA licence is important for successful planning ahead. While actual figures may vary based on your licence category, most applicants can expect to budget for several core costs throughout the licensing process including:
Application Licence Fee: A one-time charge paid at the beginning of the process, required before your documents are reviewed.
Initial Fees: Additional charges related to document assessments and processing, due prior to initial approval.
Annual Supervision Fee: Ongoing regulatory costs payable each year to maintain your licence. For example:
Advisory Services: Around AED 80,000 (USD 21,800)
Broker Dealer Services: Around AED 200,000 (USD 54,600)
Office Setup & Corporate Services: Expenses related to securing office space, establishing your legal entity, and appointing a company secretary.
Additional Documentation Support: Depending on your virtual asset activities, extra costs may apply for preparing your detailed business plan, AML/KYC policies, or risk assessments.
Aston VIP provides transparent cost breakdowns and helps you manage each financial step efficiently, ensuring all application fees and regulatory charges are handled on time.
Common Setbacks to Avoid When Applying for a VARA License
Applying for a VARA license in Dubai involves precision, preparation, and a clear understanding of the regulatory framework. While the process is straightforward with the right support, several common issues can lead to delays or rejection.
Incomplete documentation: Missing or inconsistent paperwork is one of the most frequent reasons for application hold-ups. This includes failing to provide a full initial disclosure questionnaire or incomplete identity records.
Unclear business model: Submitting a vague or poorly defined business model can raise concerns during the review. VARA assesses each virtual asset service in detail to ensure transparency and regulatory fit.
Inadequate internal policies: Weak or missing compliance documents, such as KYC, AML, or risk management procedures, may result in rejection or requests for additional documentation.
Non-compliant office space: A workspace that doesn’t meet location or lease criteria will cause your application to stall.
Delays in paying initial fees: Failing to pay initial fees required on time will prevent your application from progressing to the initial approval stage.
Improper appointment of Responsible Individuals: If your named individuals do not meet VARA’s fit and proper standards, or are not UAE residents, your application may be denied.
Aston VIP helps clients anticipate and resolve these issues early, improving the quality of your submission and minimising back-and-forth with the virtual assets regulatory authority.
Training, Compliance & Ongoing Obligations Under VARA
Securing your VARA licence is only the beginning. Licensed virtual asset service providers must commit to ongoing obligations that uphold the integrity of the virtual asset space and protect users and investors.
Key responsibilities include:
Annual Renewal: The vasp license must be renewed each year by submitting updated documentation and paying the annual supervision fee.
Staff Training: Businesses are expected to provide regular training on compliance and operational procedures, ensuring staff stay aligned with both internal standards and external regulations.
Ongoing Monitoring: VARA expects firms to maintain oversight across all business operations, including internal audits, suspicious transaction reporting, and updates to client risk profiles.
Regulatory Updates: As part of Dubai’s broader digital economy strategy, VARA may update or expand its rulebooks. Licensees are responsible for staying informed and making adjustments to ensure compliance.
These obligations are not just regulatory formalities. They’re essential for maintaining your firm’s standing within Dubai’s regulated crypto business ecosystem. Aston VIP continues to support clients beyond approval, offering reliable guidance as your business grows within the region.
Why Choose Dubai Over Other Crypto Jurisdictions?
For firms exploring regulated markets, Dubai has quickly become a top destination for virtual asset licensing. The city offers a clear, well-defined path for virtual asset businesses through its specialised regulatory authorities, particularly VARA.
Unlike other regions where rules may remain uncertain or under development, Dubai’s comprehensive framework provides transparency from day one. Its system ensures that every virtual asset service is overseen with care, protecting users while encouraging innovation and sustainable growth.
With world-class infrastructure, a supportive government, and an expanding network of specialised free zones such as the Dubai International Financial Centre, the Emirate is uniquely positioned to lead the global shift toward regulated digital assets.
For businesses seeking a reliable, forward-thinking base of operations, the benefits of obtaining a VARA license Dubai go far beyond compliance. It’s about building credibility, accessing investment opportunities, and being part of a stable, fast-moving economy that supports fostering growth in every sense.
