How to Get a VARA License in Dubai 2026: Complete Guide with Costs, Process & Requirements  

Dubai is turning into a crypto hotspot fast. People trade Bitcoin and Ethereum every day. Startups build NFT projects. Blockchain firms grow big. This boom draws business owners worldwide. How to start crypto business in Dubai tops search lists now. The city offers top roads and tech hubs. Rules help firms stay safe. The Virtual Assets Regulatory Authority Dubai leads this change. Dubai Virtual Assets Law No. 4 of 2022 sets the path. Regulation keeps money safe from scams. Investors trust licensed spots. Founders build strong firms. A VARA license in Dubai opens all doors.

This guide shows every step. We use easy words for all readers. Facts are based on VARA rules and 2026 data. Check vara.ae for fresh updates. Learn the crypto business setup in UAE the right way.  

Why Dubai Draws Crypto Firms  

UAE crypto use hits 12% of adults. Over 1,200 crypto companies work in Dubai. Daily trade tops AED 10 billion. The city ranks in the top 10 worldwide for being crypto-ready. VARA approved 50-plus VARA crypto license UAE last year. Big Web3 events fill halls. Government cheers digital money. Tax breaks lure startups. Fast internet links global clients. Dubai crypto company formation takes weeks, not years. Free zones give full ownership rights. Crypto exchanges list tokens quickly. Wallets hold assets safely. This mix makes Dubai win.  

What is a VARA License in Dubai?  

A Dubai VARA license gives legal approval for crypto work. It covers jobs for virtual asset service providers (VASPs). You trade coins or store keys with it. VARA regulatory framework keeps order. Dubai virtual asset regulation skips the DIFC zone. Other spots need this license. The provisional step lets you build first. The full license starts trading later. No paper means big fines or the shop closing. Investors check the license before funds flow. Safe rules draw more cash.  

Provisional approval establishes the office and the bank. Full one opens trading doors. Both protect users from bad acts.  

Who Issues the VARA License?  

The Virtual Assets Regulatory Authority in Dubai issues licenses. VARA starts from Law No. 4 of 2022. DWTC Authority helps with free zones. SCA watches federal rules. VARA leads local crypto watch. It follows global FATF standards. UAE crypto compliance rules stay tight. Clear steps build trust. First body of this kind worldwide. Dubai sets an example for others.  

Who Needs a VARA License in Dubai?  

Any business offering virtual asset service provider (VASP) activities in Dubai needs a VARA license Dubai. The Virtual Assets Regulatory Authority Dubai requires this under Law No. 4 of 2022. It covers mainland Dubai and free zones except DIFC. Personal crypto trading skips the license. Commercial services must apply.  

Exchange Services  

Platforms that match crypto buyers and sellers need a Dubai crypto exchange license. Crypto exchanges use this type.  

Broker-Dealer Services  

Firms trading crypto for clients require a broker-dealer crypto license. OTC trading desks fall here.  

Custody Services  

Businesses storing virtual assets need a custody license Dubai. Crypto wallet providers apply for this.  

Lending & Borrowing Services  

Platforms offering crypto loans or interest require a VARA crypto license in the UAE. DeFi platforms fall under this category.  

Transfer & Settlement Services  

Services moving assets between wallets require licensing. Crypto payment processors qualify here.  

Advisory Services  

Companies that give crypto investment advice must be licensed. Financial consultants in crypto need this.  

Virtual Asset Issuance  

Businesses launching new tokens or NFTs require approval. NFT marketplaces apply under this type.  

Types of VARA Licenses in Dubai  

VARA lists seven main types. Match your plan to one. Multiple jobs need more.  

• Advisory Services License: Give coin tips. Capital AED 100k. Fee AED 40k applies. Consultants pick it.  
• Broker-Dealer License: Trade for clients. Broker-dealer crypto license. Capital AED 250k. Fee AED 100k.  
• Custody Services License: Store assets. Custody license Dubai. Capital AED 250k. Fee AED 100k.  
• Exchange Services License: Trade platform. Dubai crypto exchange license. Capital AED 500k. Fee AED 100k.  
• Lending & Borrowing License: Loan crypto earn interest. Capital AED 300k. Fee AED 100k.  
• Transfer & Settlement License: Move coins fast. Capital AED 100k. Fee AED 40k.  
• Virtual Asset Issuance License: Launch tokens. Capital varies. Fee AED 100k.  

VARA License Eligibility Criteria in Dubai  

To qualify for a VARA license Dubai, businesses must meet strict rules set by the Virtual Assets Regulatory Authority Dubai. These criteria ensure safety in the VARA regulatory framework. All apply to virtual asset service provider (VASP) activities under Dubai Law No. 4 of 2022. Check official VARA guidelines for 2026 updates.

Legal Business Presence  

Form a company through Dubai crypto company formation in mainland Dubai or in approved free zones such as DMCC or DWTC. VARA requires UAE incorporation before application. No shelf companies allowed.   

Physical Office Requirement  

Rent a real office building in Dubai. Virtual offices are not acceptable. The VARA approval process requires proof in the form of a lease or memorandum of understanding.   

Basic Requirements for VARA   

Show the minimum paid-up capital using a bank certificate. License costs vary:   

Advisory/Transfer: AED 100,000   

For Broker-Dealer/Custody/Management, AED 250,000   

Exchangeable services: AED 500,000   

300,000 AED is the loan amount.   

Crucial Staff Meetings   

Choose senior managers to oversee activities in Dubai:   

Compliance Officer   

Money Laundering Reporting Officer (MLRO)   

Risk Management Officer   

Everyone must pass the Fit & Proper checks, have crypto experience, and maintain a spotless record.   

 

Step-by-Step Process of Getting a VARA License   

Phase 1: Approval of Incorporation (ATI)   

Step 1: Confirm Jurisdiction and Activity   

Choose from mainland Dubai, the DMCC, or the DWTC free zone. Instead of using DIFC, use DFSA. Verify that your plan complies with VARA procedures, including custody and exchange procedures. This grants you a VARA license in the Dubai style.   

Step 2: Fill out and submit the IDQ, or Initial Disclosure Questionnaire.   

Complete the VARA IDQ form in its entirety. Send to DET for the free zone or mainland authority. List the owners, management, business plan, and any upcoming services or licenses for a bitcoin exchange based in Dubai. Now pay half of the application fee, which ranges from AED 20,000 to AED 50,000.  

Step 3: Showcase the Initial Documents   

Add the owner’s passports, the manager’s resumes, the company plan, and proof of funding. Show that you can meet the VARA capital requirements. VARA looks for any risks as well as fit and proper conditions.   

 Step 4: Get ATI’s approval   

VARA assessments within a month or two. They may interview you or ask you questions. Once approved, you can open a bank, hire staff, rent an office, and establish a bitcoin company in Dubai. Trading is not allowed at this time.   

Stage 2: Finalized VASP License Application   

Step 5: Complete the Business Setup   

Get a trade license, register a trade name, sign an office lease, and deposit the required VARA capital, as per ATI. Assign a Compliance Officer, MLRO, and Risk Officer. Everyone is required to live in Dubai.   

Step 6: Submit the complete application.   

Give VARA comprehensive documentation:   

• Full compliance with the UAE crypto policy in terms of AML  

• Cybersecurity Framework   

• Make a risk management plan.   

• Financial projections over the following five years   

• Organizational chart for qualified employees   

• Technical system descriptions   

In addition to AED 80–200k for the first year of monitoring, pay the remaining 50% of the total cost.   

Step 7: VARA Compliance Review  

VARA audits your VARA regulatory framework. Expect meetings, site inspections, and demands for further documentation. Fix issues within 30 days. The primary reason for these delays is an inadequate AML strategy.   

Step 8: Operational Readiness Testing   

Prove the efficacy of systems. Run simulated trades, show off wallet security, and test KYC procedures. Assure the success of internal audits. VARA claims that the full license is a conversion of the provisional permission.  

Step 9: Obtain a Complete License   

VARA issues UAE VARA crypto licenses. You can launch services like a crypto trading license Dubai. Annual reporting starts. Renew yearly with clean audits 

Cost of VARA License in Dubai 

Regulated Activity	Application Fee (AED)	Extension Fee (per additional)	Annual Supervision (AED)
Advisory Services	40,000	50% of lowest fee	80,000
Broker-Dealer Services	100,000	50% of lowest fee	200,000
Custody Services	100,000	50% of lowest fee	200,000
Exchange Services	100,000	50% of lowest fee	200,000
Lending & Borrowing	100,000	50% of lowest fee	200,000
Transfer & Settlement	40,000	50% of lowest fee	80,000
VA Management/Investment	100,000	50% of lowest fee	200,000
Category 1 VA Issuance	100,000	50% of lowest fee	200,000

Benefits of VARA License in Dubai  

• Regulatory Credibility: A VARA license Dubai proves you follow the VARA regulatory framework. Investors trust licensed virtual asset service provider (VASP) firms over unlicensed ones.

• Banking Access: UAE banks open accounts for VARA-approved businesses. Fiat on-ramps and off-ramps work smoothly for crypto business setup in UAE.

• Investor Confidence: Clients pick licensed platforms. Your Dubai crypto exchange license or custody license Dubai builds instant trust.

• 100% Foreign Ownership: Full ownership rights in free zones. No local sponsor required for an open crypto company in Dubai.

• Competitive Edge: Stand out from unregulated competitors. Attract top talent and global partners.  

• Market Stability: Dubai’s virtual asset regulation reduces fraud risk. A stable environment helps long-term growth.  

• Government Support: Access Dubai Web3 events, sandboxes, and policy updates first.  

• Global Recognition: VARA standards align with FATF standards. EU/Asia markets respect the VARA crypto license UAE.

• Legacy Discounts: Existing firms get 50% off application fees during transition.  

• Clear Rules: UAE crypto compliance rules prevent surprises. Plan business growth confidently.  

Documents Needed for VARA License  

• Owner’s passport copies  

• Address proof for all owners  

• Business plan full  

• Money forecasts five years  

• AML CFT full plan  

• Cyber risk policy  

• Capital bank proof  

• Company papers new  

• Office lease MoU  

• Staff CVs checks  

• Compliance MLRO letters  

• Audit reports for old firms  

Our top professionals from PRO Services in Dubai can help you in the process. They are licensed Business setup consultants in Dubai with over 12+ years of experience in providing UAE PRO Services.

If you want a better compliant process, contact PRO Services Dubai.  

FAQs  

Q1: What is the minimum capital required for a VARA license?  

AED 100,000 for advisory/transfer services. AED 250,000 for broker-dealer/custody. AED 500,000 for a Dubai crypto exchange license. Match VARA capital requirements to your activity.  

Q2: How much does a VARA license cost in Dubai?  

Application fees: AED 40k (advisory) to AED 100k (exchange). Annual supervision: AED 80k-200k. Total Year 1 setup: AED 500k-1.5M with office, compliance, and Dubai crypto company formation.

Q3: Is crypto legal in Dubai with a VARA license?  

Yes. VARA license Dubai makes all virtual asset service provider (VASP) activities legal under the Dubai Virtual Asset Regulation. Unlicensed operations face fines or shutdown.  

Q4: How long is the VARA approval process?  

3-6 months total. Stage 1 (VARA provisional approval) takes 1-2 months. Stage 2 full license needs 2-4 months. Prep cuts delays from AML compliance for crypto UAE issues.

Q5: Can foreigners get a VARA license in Dubai?  

Yes. 100% foreign ownership allowed in free zones. No local sponsor required for an open crypto company in Dubai. VARA crypto license UAE welcomes global founders.  

Final Thoughts  

VARA license in Dubai sets you up big in 2026. The VARA regulatory framework is safe and strong. Banking investor trust beats hard work. 100% own government push time right. Launch a crypto business setup in UAE now. The VARA approval process is a clear path to win.  

Contact PRO Services in Dubai for a better process!