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.
Advantages
UAE's policy-first approach to crypto regulation creates ideal environment for virtual asset businesses.
UAE ranks 5th globally and #1 in MENA for crypto adoption. Massive market opportunity.
VARA provides comprehensive regulations. No regulatory uncertainty. Know exactly what's required.
UAE recognized as 'policy-first' tokenization hub globally. Government committed to crypto ecosystem.
VARA license automatically registers you with Securities and Commodities Authority. Operate UAE-wide.
VARA licensing signals regulatory compliance. Attract institutional investors and partners.
UAE signed CARF agreement. VARA framework aligns with global crypto reporting standards.
Activities
Providing advice and recommendations on virtual asset transactions and investments.
Facilitating virtual asset transactions between buyers and sellers.
Storing and safeguarding virtual assets on behalf of clients.
Operating platforms for buying, selling, and trading virtual assets.
Providing virtual asset lending and borrowing services.
Virtual asset-based payment processing and cross-border remittances.
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
Dubai created VARA under Law No. (4) of 2022 to regulate virtual assets in the emirate.
VARA published comprehensive Virtual Assets and Related Activities Regulations (VARA Regulations) and rulebooks forming the VA Framework.
New agreement delineated regulatory responsibilities. VASPs in Dubai must get VARA license, automatically registered with SCA for UAE-wide operations.
UAE signed Multilateral Competent Authority Agreement under Crypto-Asset Reporting Framework. Implementation starts Jan 2027.
Process
Choose which of the 7 licensed virtual asset activities your business will conduct. Most exchanges need multiple activity licenses.
Incorporate company in Dubai (mainland or potentially designated free zones once confirmed). VARA regulates Dubai-based VASPs.
Business plan, AML/CFT policies, technology architecture, compliance procedures, key personnel qualifications, financial projections.
Apply through VARA portal. Comprehensive application covering all regulatory requirements and VA Framework compliance.
VARA conducts detailed review of application, compliance framework, and fitness/propriety of key personnel. May request additional information.
Upon approval, VARA issues license. Automatically registered with SCA. Can commence licensed virtual asset activities in UAE.
Maintain compliance with VARA Regulations, submit regular reports, undergo audits, and keep policies updated.
Compliance
Robust anti-money laundering and counter-financing of terrorism procedures. Customer due diligence, transaction monitoring, suspicious activity reporting.
Comprehensive governance framework, risk management policies, internal controls, and board oversight.
Secure technology infrastructure, wallet security, cyber risk management, business continuity planning.
Customer asset segregation, clear disclosures, complaints handling, conflict of interest management.
Adequate capital requirements based on activities. Must maintain minimum capital and liquidity buffers.
Key personnel must meet fitness and propriety standards. Relevant qualifications and clean regulatory records.
Comparison
| Aspect | VARA (Dubai) | ADGM (Abu Dhabi) | Offshore |
|---|---|---|---|
| Jurisdiction | Dubai emirate-wide | Abu Dhabi Global Market only | No UAE operations allowed |
| Market Access | All of UAE (via SCA registration) | ADGM + limited UAE | International only |
| Regulatory Clarity | Comprehensive VARA framework | FSRA virtual asset framework | Varies by jurisdiction |
| Institutional Recognition | High UAE + regional | High UAE + international | Limited |
| Licensing Timeline | 6-12 months | 6-12 months | Varies widely |
| Approximate Cost | AED 300,000-800,000+ | AED 250,000-750,000+ | AED 50,000-200,000 |
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