How to Obtain a VARA License in Dubai: A Comprehensive Guide 

Dubai is the global leader in cryptocurrency growth. Virtual assets boom across the UAE. The city draws startups and big firms. It builds a strong VARA regulatory framework. The Virtual Assets Regulatory Authority Dubai guides this space. Dubai’s Virtual Assets Law No. 4 of 2022 sets clear rules. Regulation protects investors and founders. Safe rules attract more money. Crypto exchanges and wallets thrive here. This guide covers all you need for a VARA license in Dubai. We use simple words. Facts are based on official VARA rules and 2026 data.   

Stats Boost for Crypto in Dubai  

The UAE ranks in the top 10 globally in crypto readiness. Crypto adoption reaches 12% of the population. Over 1,200 crypto companies call Dubai home. Daily trading volume tops AED 10 billion. VARA approved 50+ VARA crypto license UAE last year. Dubai hosts the world’s biggest Web3 events. These numbers show why searches for how to start crypto business in Dubai searches spike.

What is a VARA License in Dubai?  

A VARA license in Dubai is a legal permission to conduct crypto-related work. It covers the activities of a virtual asset service provider (VASP). You need it for trading, custody, or advice. VARA rules the Dubai mainland and free zones. It skips DIFC. Provisional approval comes first for setup. Full license follows after checks. This keeps Dubai’s virtual asset regulation strong. Investors trust licensed firms.

Provisional lets you build. Full lets you trade. No license means fines or a shutdown.  

Who Issues the VARA License?  

The Virtual Assets Regulatory Authority Dubai issues it. VARA started under Dubai Law No. 4 of 2022. DWTC Authority hosts many. SCA oversees federal rules. VARA focuses on local crypto. It complies with global standards such as FATF. This team makes UAE crypto compliance rules clear.

Who Needs a VARA License in Dubai?  

A VARA license in Dubai is required for businesses handling virtual assets commercially. The Virtual Assets Regulatory Authority Dubai mandates it under Dubai’s Law No. 4 of 2022. You need it for the mainland and free zones outside DIFC. Here are the key business types.

Businesses Conducting Exchange Services  

Platforms that match crypto buyers and sellers. Examples: Crypto exchanges.  

Businesses Conducting Broker-Dealer Services  

Firms that trade crypto for clients. Examples: OTC trading desks.  

Businesses Conducting Custody Services  

Services storing virtual assets for others. Examples: Crypto wallets.  

Businesses Conducting Lending & Borrowing Services  

Platforms lending crypto for interest. Examples: DeFi platforms.  

Businesses Conducting Transfer & Settlement Services  

Services moving assets between wallets. Examples: Payment processors.  

Businesses Conducting Advisory Services  

Firms giving crypto investment advice. Examples: Consulting services.  

Businesses Conducting Virtual Asset Issuance  

Companies launching new tokens or NFTs. Examples: NFT marketplaces.  

Personal crypto holding needs no license. Commercial crypto business setup in UAE does. Check the VARA site for the full list.  

Types of VARA Licenses in Dubai  

Dubai offers specific VARA licenses for crypto businesses. The Virtual Assets Regulatory Authority Dubai issues them under Law No. 4 of 2022. Each type matches one activity. Pick the right one for your crypto business setup in UAE. All cover mainland and free zones except DIFC. Here are the main types with key facts.   

Advisory Services License  

This license lets you give crypto advice. You help clients pick tokens. Consultants and research firms use it. Lowest fees at AED 40,000 to apply. Capital starts at AED 100,000. Good for starters in the Web3 license Dubai.

Broker-Dealer Services License  

Use this to trade crypto for clients. You buy or sell on their behalf. Broker-dealer crypto license fits OTC desks. Application fee AED 100,000. Capital AED 250,000 min. Client protection rules apply.   

Custody Services License  

These covers storing assets for others. You hold private keys and wallets. Custody license Dubai protects user funds. Fee AED 100,000. Capital AED 250,000. Insurance against hacks is required.   

Exchange Services License  

Run a trading platform with this. Match buyers and sellers. Dubai crypto exchange license powers spot markets. Highest capital AED 500,000. Application AED 100,000. Liquidity proof needed.   

Lending and Borrowing Services License  

Offer crypto loans and interest. Users lend Bitcoin for yield. VARA crypto license UAE covers DeFi-style services. Fee AED 100,000. Capital AED 300,000. Collateral rules are strict.   

Transfer and Settlement Services License  

Move assets between wallets or chains. Process fast payments in USDT. Low fee AED 40,000. Capital AED 100,000. Speed and security focus.   

Virtual Asset Management and Investment Services License  

Manage portfolios of crypto. Run funds or strategies. Fee AED 100,000. Capital AED 250,000. Performance disclosure required.   

Virtual Asset Issuance License (Category 1)  

Launch new tokens or stablecoins. ICOs and NFT projects use it. High scrutiny. Fee AED 100,000. Extra investor protections. 

VARA License Eligibility Criteria  

• UAE company incorporation (mainland or free zone)  

• Physical office in Dubai  

• Meet VARA capital requirements (AED 100k-500k by activity)

• Appoint Compliance Officer

• Appoint MLRO (Money Laundering Reporting Officer)

• Appoint Risk Officer

• Full AML compliance for crypto UAE (FATF standards)

• Cybersecurity policy in place

• Risk management framework

• Fit & Proper test for all shareholders  

• Senior management background checks  

Step-by-Step Process to Get a VARA License in Dubai  

The VARA approval process for a VARA license in Dubai has two main stages. Stage 1 gets you approval to set up your company. Stage 2 gives the full operating license. The Virtual Assets Regulatory Authority Dubai runs strict checks. The full path takes 3-6 months. Follow these steps in order. Use experts to avoid delays.  

Stage 1: Approval to Incorporate (ATI)  

Step 1: Submit Initial Disclosure Questionnaire (IDQ).  

Fill the IDQ form. Send it to DET for the mainland or to the free zone authority, such as DWTC or DMCC. Include basic business details and owners. Pay 50% of the application fee upfront. This starts the VARA provisional approval review.  

Step 2: Provide Supporting Documents.  

Attach the business plan, owner passports, senior management CVs, and proof of source of funds. Show your planned crypto business setup in UAE. VARA screens for risks here.  

Step 3: Get ATI Approval.  

VARA reviews in 1-2 months. They may ask questions or interview you. Approval lets you incorporate your Dubai crypto company formation. You can lease an office and hire now. No trading yet.  

Stage 2: Full VASP License Application  

Step 4: Submit Full Application Pack.  

After incorporation, send complete docs to VARA. Include AML policy, cybersecurity plan, risk framework, financial projections, and compliance setup. Pay the remaining 50% fee, plus the first-year supervision fee.  

Step 5: Compliance and Risk Review.  

VARA checks AML compliance for crypto UAE and systems. Expect meetings and extra info requests. Fix issues fast. They test your VARA regulatory framework readiness.  

Step 6: Operational Readiness Test.  

Prove your tech works. Run mock trades or custody tests. Pass internal audits. Show key staff, like Compliance Officer and MLRO, are ready.  

Step 7: Receive Full License.  

VARA issues a VARA crypto license UAE. You can now offer services such as a Dubai crypto exchange license. Annual supervision starts. Renew yearly with audits.  

VARA License Cost in Dubai (2026 Updated)  

The cost of a VARA license in Dubai varies by type.  

Application fees 

• Advisory/Transfer: AED 40,000 Broker/Exchange/Custody/Lending: AED 100,000  

• Annual fees: Advisory AED 80,000. Exchange AED 200,000.  

Extras 

• Company formation AED 15k-50k.   

• Office lease AED 50k per year.   

• Compliance staff AED 300k year.   

• Tech infra-AED 100k+.   

• Legal AED 50k.   

• Audits AED 20k.   

• Total setup AED 500k-2M first year.  

How Long Does It Take to Get a VARA License?  

VARA approval process averages 3-6 months. ATI 1-2 months. Provisional 1 month. Full 2-3 months. Delays due to poor AML or insufficient capital. Good prep cuts to 3 months.   

Benefits of Getting a VARA License in Dubai  

A VARA license in Dubai brings strong advantages for crypto businesses. The Virtual Assets Regulatory Authority Dubai offers credibility and growth. Here are the key benefits from official sources.

Regulatory Credibility and Trust  

A VARA license in Dubai proves you follow the rules. Investors pick licensed firms. Clients trust your crypto business setup in UAE. It shows transparency and safety. Unlicensed rivals lose out.  

Access to Banking Services  

Banks open accounts for VARA firms. You move money easily. Fiat on-ramps work smoothly. This solves major hurdles for crypto trading license holders in Dubai.

Competitive Market Edge  

Licensed status sets you apart. Attract top talent and partners. Stand out in Dubai virtual asset regulation. Global players notice VARA-approved businesses.  

100% Foreign Ownership  

Own your fully operational crypto company in Dubai. No local sponsor needed in free zones. Keep all profits. Great for international founders.  

Stable Regulatory Environment  

VARA regulatory framework stays predictable. Clear UAE crypto compliance rules avoid surprises. Long-term planning gets easy.  

Global Expansion Boost  

VARA license opens doors worldwide. The EU and Asia respect Dubai rules. List on big exchanges faster. Build a Web3 license Dubai brand.

Government Support and Events  

VARA hosts Web3 summits. Network with leaders. Get policy updates first. Dubai pushes crypto as top hub.  

Reduced Legacy Fees (Existing Firms)  

Legacy program cuts application 50%. Lower VARA capital requirements for transitions. Fast track to full license.  

Common Challenges in Obtaining a VARA License   

• High VARA capital requirements (minimum of AED 100k to 500k)   

• Strict adherence to AML for crypto documents in the UAE   

• lengthy VARA approval procedure (usually delays of 3-6 months)   

• Securing UAE bank accounts for cryptocurrency companies might be challenging.  

• Submissions of intricate cybersecurity and risk frameworks   

• Fit and appropriate testing, as well as senior staff screening   

• Regular requests for and modifications to documents   

• high annual supervision and application fees.   

Required Documents for a VARA License   

• Copies of directors’ and shareholders’ passports   

• All shareholders’ proof of address   

• A business plan that includes financial forecasts   

• Manual of AML/CFT Policies and Procedures   

• Policy for risk management and cybersecurity   

• Bank statements as evidence of VARA capital needs    

• Office MoU or lease agreement   

• Senior management background checks and resumes   

• Appointment letters for Compliance Officers and MLROs   

• Financial audit reports (if the company is already in operation)   

• Declaration of compliance with the VARA regulatory framework  

• VARA regulatory framework compliance declaration  

Why Work With a Business Setup Experts in Dubai?  

Business setup experts in Dubai assist you to open crypto company in Dubai. They are the lisensed Business setup consultants in Dubai with 12+ years of experience in aligning the VARA regulatory framework, fast VARA crypto license UAE, and a smooth process without any hassle. You can contact them for a smooth business setup in Dubai.

FAQs  

Q1: What is the minimum capital required for a VARA license?  

Capital starts at AED 100,000 for advisory services. Exchange licenses need AED 500,000. Requirements match your activity type.  

Q2: How much does a VARA license cost in Dubai?  

Application fees range from AED 40,000 to AED 100,000. Annual supervision adds AED 80,000-200,000. Total first-year setup exceeds AED 500k, including office and compliance.  

Q3: Is crypto legal in Dubai?  

Yes, crypto is fully legal with a VARA license in Dubai. Unlicensed trading faces fines. VARA covers exchanges, wallets, and DeFi.  

Q4: How long does VARA approval take?  

The full VARA approval process averages 3-6 months. Stage 1 (incorporation) takes 1-2 months. Stage 2 (full license) needs 2-4 months.  

Q5: Can foreigners apply for a VARA license?  

Yes, foreigners can own 100%. No local sponsor required in free zones. VARA crypto license UAE welcomes global founders.  

Final Thoughts – Is the VARA License Worth It in 2026?  

A VARA license in Dubai unlocks massive growth in 2026 as the city cements its Web3 leadership. Clear VARA regulatory framework, banking access, investor confidence, and 100% foreign ownership outweigh compliance hurdles.   

Dubai’s government support and global recognition make this the perfect moment to launch your crypto business setup in UAE through the proven VARA approval process.

Contact Business setup experts in Dubai for more help!