Dubai’s Virtual Assets Regulatory Authority (VARA) is the world’s first dedicated virtual asset regulator. Here is a complete guide to obtaining a VARA licence for a crypto or virtual asset business in the UAE.
What Activities Require a VARA Licence?
VARA regulates 7 Virtual Asset (VA) Activities: VA Broker-Dealer: Buying and selling virtual assets as principal or agent. VA Exchange Services: Operating a crypto exchange platform. VA Transfer and Settlement Services: Facilitating transfer of virtual assets between parties. VA Custody Services: Holding virtual assets on behalf of clients. VA Management and Investment Services: Managing VA portfolios or operating VA funds. VA Lending and Borrowing Services: Lending VA against collateral or providing VA credit. VA Advisory Services: Providing advice on VA transactions and investments. Any UAE entity conducting any of these activities must hold a VARA licence — there are no exemptions for activities “below a certain volume.”
VARA Licence Requirements
Minimum capital requirements (2024, USD): VA Exchange: USD 2.5M; VA Custody: USD 2M; VA Broker-Dealer: USD 1M; VA Advisory: USD 100,000. Operational requirements: physical office in Dubai (virtual addresses not accepted for VARA-regulated entities), VARA-approved compliance officer (UAE-based, qualified in AML/CFT), and a written compliance framework including AML/CFT policies approved by VARA. Technology requirements: VARA requires security audit of the platform/infrastructure by a VARA-approved auditor before licence grant.
VARA Licence Application Process
Step 1: Obtain a DMCC or Dubai mainland trade licence as the corporate vehicle. Step 2: Submit VARA Initial Approval Application with: business plan, corporate structure, management CVs, and AML/CFT policy draft. Step 3: Receive VARA Minimum Viable Product (MVP) Licence (a limited licence for early testing). Step 4: Complete operational setup and VARA audit. Step 5: Apply for full VARA operational licence. Timeline: 6–18 months from initial application to full operational licence.