Dubai Setup
UAE #5 Globally for Crypto

VARA Crypto License Dubai: Complete Guide 2026

Get your VARA license Dubai for cryptocurrency and virtual asset business. UAE ranked #5 globally for crypto adoption, #1 in MENA. Comprehensive Virtual Assets Regulatory Authority framework with 7 licensed activities.

7 licensed activities
UAE-wide operations
Clear regulations

Advantages

Why Get VARA License in Dubai?

UAE's policy-first approach to crypto regulation creates ideal environment for virtual asset businesses.

UAE #5 Globally for Crypto

UAE ranks 5th globally and #1 in MENA for crypto adoption. Massive market opportunity.

Clear Regulatory Framework

VARA provides comprehensive regulations. No regulatory uncertainty. Know exactly what's required.

Policy-First Tokenization Hub

UAE recognized as 'policy-first' tokenization hub globally. Government committed to crypto ecosystem.

Automatic SCA Registration

VARA license automatically registers you with Securities and Commodities Authority. Operate UAE-wide.

Institutional Credibility

VARA licensing signals regulatory compliance. Attract institutional investors and partners.

CARF Compliance Ready

UAE signed CARF agreement. VARA framework aligns with global crypto reporting standards.

Activities

7 VARA Licensed Virtual Asset Activities

1

Virtual Asset Advisory

Providing advice and recommendations on virtual asset transactions and investments.

2

Broker-Dealer Services

Facilitating virtual asset transactions between buyers and sellers.

3

Virtual Asset Custody

Storing and safeguarding virtual assets on behalf of clients.

4

Virtual Asset Exchange

Operating platforms for buying, selling, and trading virtual assets.

5

Lending & Borrowing

Providing virtual asset lending and borrowing services.

6

Payments & Remittance

Virtual asset-based payment processing and cross-border remittances.

7

Management & Investment

Managing virtual asset portfolios and investment services.

Multiple Activity Licenses

Most crypto exchanges and platforms need licenses for multiple activities. For example, a typical exchange would need Exchange + Custody + Broker-Dealer licenses. VARA evaluates and licenses each activity separately.

Timeline

VARA Regulatory Evolution

March 2022

VARA Established

Dubai created VARA under Law No. (4) of 2022 to regulate virtual assets in the emirate.

February 2023

Regulations & Rulebooks Issued

VARA published comprehensive Virtual Assets and Related Activities Regulations (VARA Regulations) and rulebooks forming the VA Framework.

September 2024

VARA-SCA Cooperation Agreement

New agreement delineated regulatory responsibilities. VASPs in Dubai must get VARA license, automatically registered with SCA for UAE-wide operations.

September 2025

CARF Agreement Signed

UAE signed Multilateral Competent Authority Agreement under Crypto-Asset Reporting Framework. Implementation starts Jan 2027.

Process

How to Apply for VARA License

1

Determine License Type

Choose which of the 7 licensed virtual asset activities your business will conduct. Most exchanges need multiple activity licenses.

2

Establish Dubai Entity

Incorporate company in Dubai (mainland or potentially designated free zones once confirmed). VARA regulates Dubai-based VASPs.

3

Prepare Documentation

Business plan, AML/CFT policies, technology architecture, compliance procedures, key personnel qualifications, financial projections.

4

Submit VARA Application

Apply through VARA portal. Comprehensive application covering all regulatory requirements and VA Framework compliance.

5

VARA Review & Assessment

VARA conducts detailed review of application, compliance framework, and fitness/propriety of key personnel. May request additional information.

6

License Issuance

Upon approval, VARA issues license. Automatically registered with SCA. Can commence licensed virtual asset activities in UAE.

7

Ongoing Compliance

Maintain compliance with VARA Regulations, submit regular reports, undergo audits, and keep policies updated.

Compliance

VARA Compliance Requirements

AML/CFT Compliance

Robust anti-money laundering and counter-financing of terrorism procedures. Customer due diligence, transaction monitoring, suspicious activity reporting.

Governance & Risk Management

Comprehensive governance framework, risk management policies, internal controls, and board oversight.

Technology & Cybersecurity

Secure technology infrastructure, wallet security, cyber risk management, business continuity planning.

Customer Protection

Customer asset segregation, clear disclosures, complaints handling, conflict of interest management.

Financial Resources

Adequate capital requirements based on activities. Must maintain minimum capital and liquidity buffers.

Fit & Proper Personnel

Key personnel must meet fitness and propriety standards. Relevant qualifications and clean regulatory records.

Comparison

VARA vs ADGM vs Offshore Crypto Licenses

AspectVARA (Dubai)ADGM (Abu Dhabi)Offshore
JurisdictionDubai emirate-wideAbu Dhabi Global Market onlyNo UAE operations allowed
Market AccessAll of UAE (via SCA registration)ADGM + limited UAEInternational only
Regulatory ClarityComprehensive VARA frameworkFSRA virtual asset frameworkVaries by jurisdiction
Institutional RecognitionHigh UAE + regionalHigh UAE + internationalLimited
Licensing Timeline6-12 months6-12 monthsVaries widely
Approximate CostAED 300,000-800,000+AED 250,000-750,000+AED 50,000-200,000

Related

Crypto & Blockchain in Dubai

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