How We Can Help You Successfully Obtain a Dubai VARA License
Regulatory expertise: We have a deep understanding of VARA, from its core objectives to detailed compliance requirements, and we will guide you throughout the process to ensure that your business model meets Dubai's pioneering digital asset standards.
Comprehensive documentation and compliance support: Whether it is preparing a business plan and financial overview, or perfecting an AML/CFT policy and risk management framework, our one-stop service covers every detail of the VARA application process.
Post-license operational support: In addition to initial approvals, we provide ongoing support-from compliance updates and audits to referrals to banking and payment partners-to help you stay ahead of the competitive digital finance landscape.
Ready to become a digital finance leader in Dubai?
The Virtual Assets Regulatory Authority (VARA), established in early 2022, is the world's first independent regulator focused on virtual assets. VARA's mission includes:
Make Dubai a regional and international hub for virtual assets.
Enhance the emirate's competitive edge in the digital finance sector.
Foster a robust digital economy through safe and effective regulatory oversight.
Why choose Dubai VARA license?
Legal Transparency: Enjoy a clear legal framework with a strong emphasis on anti-money laundering (AML) and cybersecurity standards to build a solid foundation of trust and credibility for businesses.
Investor confidence: The VARA license signifies that the company adheres to strict regulatory standards, thereby enhancing its reputation and attracting local and international investors.
Strategic Location: Dubai serves as a vital bridge between Asia and Europe, placing your business at the heart of global trade and finance.
A supportive regulatory environment: The UAE's forward-looking policies welcome foreign companies and encourage innovation, making it easy to scale and succeed.
What business activities does VARA cover?
The VARA license enables your business to conduct multiple virtual asset businesses. Here are the business areas covered by VARA:
1. Advisory services provide professional advice on virtual asset investments and strategies.
2. Broker services facilitate the buying and selling of virtual assets by passing orders, accepting orders and matching transactions.
3. Custody services refer to the provision of secure storage solutions for virtual assets to ensure that they are properly kept.
4. Exchange services are platform services that serve as a marketplace for trading virtual assets, including: a. matching orders and exchanging, trading or converting virtual assets with legal tender or one or more virtual assets; and B. maintaining an order book.
5. Lending services are companies that facilitate the lending of virtual assets, enabling users to leverage their holdings.
6. Management and investment services refer to the activities of companies that manage portfolios containing virtual assets, including: a. Asset management services for virtual assets; B. Responsible for the pledge management of virtual assets.
7. Transfer and settlement services refer to the business responsible for the transfer and settlement process in virtual asset transactions.
Capital requirements for each business activity
Capital requirements vary by service type and can be calculated as a fixed USD/UAE Dirham amount or as a percentage of a fixed annual expenditure:
1. Advisory Services Capital Requirements: USD 27,300(AED 100,000)
2. Broker Services Use VARA Licensed Custodian: USD 109,000(AED 400,000) or 15% of fixed annual expenses
No VARA Licensed Custodian: USD 163,500(AED 600,000) or 25% of fixed annual expenses
3. Capital requirement for managed services: USD 163,500(AED 600,000) or 25% of fixed annual expenditure, whichever is higher
4. Exchange service VARA licensed virtual asset service provider (VASP) hosting: USD 218,000(AED 800,000) or 15% of fixed annual expenses, whichever is higher
Others: USD 409,000(AED 1,500,000) or 25% of fixed annual expenses
5. Lending service capital requirement: USD 136,300(AED 500,000) or 25% of fixed annual expenditure, whichever is higher
6. VASP hosting for management and investment services VARA license: USD 76,300(AED 280,000) or 15% of fixed annual expenses, whichever is higher
Other cases: USD 136,300(AED 500,000) or 25% of fixed annual expenditure
7. Capital requirements for transfer and settlement services: USD 136,300(AED 500,000) or 25% of fixed annual expenditure (whichever is higher)
Below is a non-exhaustive list of documents required for a VARA license application. During the application process, VARA may request additional documents.
1. Corporate Structure and Governance Certificate of Incorporation (including entity office), list and identification of ultimate beneficiaries (UBO), details of all senior management, control function leaders, board members (at least 1 director, who may be foreign), organization chart, governance framework, regulatory business plan, financial forecast, proof of source of funds, proof of paid-in capital, reserve account report, succession plan, liquidation plan, etc.
2. Risk and compliance Enterprise risk management framework, compliance manual, compliance monitoring plan, anti-money laundering/counter-terrorism financing (AML/CFT) policy and procedures, anti-bribery and corruption (ABC) policy and procedures, outsourcing policy, conflict of interest policy, privacy policy, marketing policy and plan, market behavior policy, virtual asset analysis, etc.
3. Technical infrastructure design, technical risk assessment framework and methodology, business continuity management and IT disaster recovery plan, key and wallet management policy, UAE public key and wallet address, information security policy, penetration test results
4. Other (for specific virtual asset activities only) virtual asset white papers, proprietary transaction support information, DeFi activity support information, virtual asset payment support information.
Step 1: Establishment of the Company
Expected 1-2 weeks about 1 month. We assist you in setting up a UAE entity.
Step 2:VARA Preliminary Approval
Expected 1-2 weeks about 2 months. We prepare the necessary documents, including company details, to obtain preliminary approval from VARA.
Step 3: Submit & VARA Final Approval
Expected 1 week about 5 months. We handle the entire submission process and maintain communication with VARA until approval.
Expense: Expect to include establishment costs, AML/KYC compliance solution costs, and professional support costs. Please contact us for detailed quotation.
Timing: Registration usually takes 8-10 months, depending on the complexity of your operations and the preparation of your documents. We are committed to accelerating processes and minimizing delays.
Ready to transform your virtual asset business in Dubai?
Embrace the future of digital finance and obtain a VARA license. Our comprehensive end-to-end support ensures you not only receive regulatory approvals, but thrive in Dubai's vibrant virtual asset ecosystem.
FAQs on Dubai VARA Licenses
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1. What is the Dubai VARA license?
The Dubai VARA License is an official regulatory authorization issued by the Virtual Asset Regulatory Authority (VARA) to enable Virtual Asset Service Providers (VASPs) to operate within Dubai's vibrant digital financial ecosystem. The license establishes clear compliance requirements, strong anti-money laundering measures and a secure virtual asset operating framework. -
2. What are the VARA requirements for obtaining a Dubai Encryption License?
To obtain a VARA license, businesses must meet strict requirements, including:
Comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) agreements.
Detailed business plans and financial forecasts.
Strong risk management framework.
Submit detailed corporate governance and technical infrastructure documents.
Our team will guide you through the process to ensure full compliance. -
3. What virtual asset business activities are covered by the VARA license?
The VARA license covers a wide range of business activities, including:
Advisory Services: Provides professional advice on virtual asset investments and strategies.
Brokerage Proprietary Services: Facilitate virtual asset trading, including buying and selling and matching transactions.
Managed Services: Provides secure storage solutions for digital assets.
Exchange services: operating virtual asset trading platforms.
Lending services: enable structured lending of digital assets.
Management and Investment Services: Manage portfolios containing virtual assets, including asset pledges.
Transfer and settlement services: Supervise the transfer and settlement process for virtual asset transactions. -
4. What are the capital requirements for each virtual asset business activity?
Capital requirements vary depending on the type of business and can be calculated as a fixed amount (USD/UAE Dirham) or as a percentage of a fixed annual expenditure. For example:
Consulting services: USD 27,300(AED 100,000)
Brokerage Proprietary Services: Requirements range from USD 109,000(AED 400,000) to USD 163,500(AED 600,000) depending on whether a VARA-licensed custodian is used.
Custody, Exchange, Lending, Management and Investment, and Transfer and Settlement: Each service has a specific capital threshold.
See our Capital Requirements section for detailed figures. -
5. How long does the overall application process for a VARA license take?
The entire application process usually takes 8 to 10 months and consists of three main stages:
Step 1: Company formation-approximately 1 month.
Step 2:VARA Preliminary Approval-Approximately 2 months, during which the preliminary documents and company details are reviewed.
Step 3: Submission and Final Approval-Approximately 5 months during which the full application is submitted and final approval is obtained. -
6. Can I apply for a VARA license if my company is not originally registered in the UAE?
Yes, you can start the VARA application process as a foreign entity. However, you need to establish a local entity in the UAE to fully meet the regulatory requirements of VARA. We provide comprehensive support to help you with local company formation and governance. -
7. Can I apply for a VARA license without traveling to the UAE in person?
Yes, there is no need to visit the UAE in person during the application process. We can remotely guide you to collect the required documents and submit the application on your behalf. -
8. What ongoing compliance requirements do I need to meet after obtaining a VARA license?
Once approved, ongoing compliance requirements include:
Update and review the AML/CFT policy on a regular basis.
Conduct regular compliance audits and risk management assessments
Report any suspicious transactions in a timely manner and ensure compliance with changing regulatory standards.
Our team provides ongoing operational and compliance support to ensure you remain compliant with VARA requirements. -
How does VARA differ from other regulatory frameworks in Canada or the Abu Dhabi Global Market (ADGM)?
While the regulatory framework of Canada (for MSB) or ADGM involves different financial services and crypto business areas, VARA is unique and focuses on virtual assets. VARA's regulatory framework specifically addresses the needs of digital finance by developing specific guidelines to promote safe and innovative virtual asset operations, thereby establishing Dubai as a leading global center for digital financial innovation. -
10. How does VARA handle applications from existing virtual asset service providers?
VARA classifies applicants according to operational status:
Category A: Applicants who are in the process of obtaining an MVP license.
Category B: Transition to a traditional virtual asset service provider (VASP) under VARA regulation.
Category C: New applicants or existing providers seeking additional business activities. A gap analysis is usually performed to ensure that all remaining requirements are met.
For more information or personalized advice, contact a VARA license expert today.
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