VARA (Virtual Assets Regulatory Authority) is Dubai’s dedicated regulator for virtual asset businesses. A VARA licence is required for any company offering crypto exchange, brokerage, custody, transfer, or lending services in or from Dubai. Here is the complete application process.
Who Needs a VARA Licence?
Any business conducting Virtual Asset Activities in or from Dubai — including free zone companies serving global clients — must apply for VARA authorisation. Activities requiring VARA licences: Virtual Asset Exchange (spot trading), Broker-Dealer Services, Custody Services, Investment Management (for VA portfolios), VA Transfer and Settlement Services, and VA Lending and Borrowing Services.
Step 1: Obtain the VARA “In Principle” Approval
Before full VARA licensing, companies must obtain an “In Principle” (IP) approval. Submit the IP application through the VARA portal (vara.ae): detailed business plan describing VA activities, technology infrastructure, AML/CFT programme framework, key personnel CVs and background checks, financial projections, and initial capital commitment. VARA review: 60–120 days. IP approval allows the company to proceed with operational setup.
Step 2: Set Up UAE Entity and Minimum Capital
VARA requires a UAE legal entity (Dubai mainland or Dubai free zone company). Minimum paid-up capital varies by activity: Exchange licence: AED 10 million+, Broker-Dealer: AED 2 million+, Custody: AED 4 million+. Capital must be deposited in a UAE bank account before full licence issuance.
Step 3: Technology and Compliance Audit
VARA requires an independent technology audit of your platform, an AML/CFT programme audit, and appointment of a Compliance Officer (CO) and Money Laundering Reporting Officer (MLRO) approved by VARA. Third-party technology auditors approved by VARA: leading cybersecurity firms including Big Four affiliates.
Step 4: Full Licence Issuance
After completing all requirements, VARA issues the full Virtual Asset Service Provider (VASP) licence. Total timeline: 6–18 months from first application to full licence. Annual VARA licence fee: USD 10,000–100,000 depending on activities. Once licensed, annual compliance costs (audits, reporting, MLRO salary) will be AED 300,000–1,000,000+.