VARA License in Dubai: Everything You Need to Know to Launch Your Crypto Business

Dubai is positioning itself as a global leader in blockchain and cryptocurrency innovation. At the center of this strategy is the Virtual Assets Regulatory Authority (VARA), the first regulatory body in the world exclusively focused on virtual assets. If you’re planning to start a crypto exchange, NFT platform, DeFi application, or any virtual asset service provider (VASP) in Dubai, obtaining a VARA license is mandatory.

What Is VARA?

The Virtual Assets Regulatory Authority (VARA) was established in March 2022 under Dubai Law No. (4) of 2022. Its purpose is to regulate, license, and oversee virtual asset-related activities in Dubai (excluding DIFC, which has its own framework under DFSA).

VARA’s goal is to ensure a secure, transparent, and legally compliant environment for virtual asset businesses. The authority sets the rules for operating cryptocurrency exchanges, wallet services, NFT platforms, and more.

What Are VARA’s Objectives?

VARA is tasked with building a resilient and inclusive framework for virtual assets. Its key objectives are:

Protecting investors and market participants
Enabling innovation in the virtual asset sector
Promoting the integrity and transparency of digital finance
Establishing Dubai as a global hub for regulated virtual asset activity

Who Needs a VARA License?

Any business offering virtual asset services in Dubai must be licensed by VARA. This includes:

Crypto exchanges (centralized or decentralized)
Custodians and wallet providers
Virtual asset brokers and dealers
NFT marketplaces
Advisory services for virtual asset projects
Payment and remittance services involving virtual assets

Operating without a VARA license can lead to penalties, fines, or a business shutdown.

Types of VARA Licenses

VARA offers several license categories depending on your business model:

Advisory Services – For consulting firms advising on virtual asset investment or projects.
Broker-Dealer Services – For buying, selling, or facilitating trades in virtual assets.
Custody Services – For companies safeguarding crypto assets on behalf of clients.
Exchange Services – For platforms facilitating the trading of virtual assets.
Lending & Borrowing Services – For DeFi platforms offering crypto-based lending.
Transfer & Settlement Services – For services that help users send and receive digital assets.

VARA Licensing Process

The process for obtaining a VARA license involves several stages:

Initial Application – Submit a business plan, compliance structure, and KYC/AML framework.
Pre-Approval Review – VARA assesses your readiness and internal controls.
Final Approval – If satisfied, VARA issues an operating license and outlines ongoing reporting obligations.
Go-Live Authorization – Businesses are monitored during a soft launch before full-scale operations.

Key Requirements

To qualify for a VARA license, your business must:

Be incorporated in Dubai (Mainland or certain free zones like DWTC)
Have a detailed compliance framework (AML/KYC policies)
Maintain qualified personnel including a Compliance Officer
Submit audited financials and IT systems documentation
Comply with cybersecurity and data protection standards

Capital Requirements for VARA Licensed Firms

Capital requirements vary by license category and business model. In general:

Proprietary Trading Firms using only their own capital may face lighter requirements but must still maintain adequate operational reserves.
Client-Facing Entities like custodians, exchanges, or brokers are subject to minimum capital thresholds based on their exposure and activity volume.

Specific figures depend on the activity type, and applicants must submit audited financials to demonstrate compliance.

Scope of Activities: Proprietary Trading and Retail Clients

If you own a virtual assets proprietary trading license and operate solely with your own funds—without serving clients—you are still required to register with VARA. Proprietary trading is regulated under VARA’s framework, even in the absence of client-facing services. Registration ensures that your trading operations are compliant with broader market integrity and reporting standards.

Regarding client engagement, VARA currently restricts most licensed entities to serve Qualified Clients only. Retail client engagement is under consideration but requires explicit approval and adherence to more stringent consumer protection standards. As of now, VARA licenses do not automatically allow access to the retail market, reinforcing the authority’s focus on risk management and investor safety.

VARA License Costs

The cost of a VARA license varies based on activity type and scale. Expected fees include:

Application Fee: AED 100,000 (non-refundable)
Annual Supervision Fee: Varies depending on the license type (ranges from AED 40,000 to AED 200,000+)
Additional costs for legal, compliance, and infrastructure readiness should also be factored in.

Why Dubai Is a Crypto Hub

Pro-innovation government
Clear regulatory framework under VARA
No personal income tax
Strategic location for accessing Middle East, Asia, and Africa markets
Access to a growing ecosystem of blockchain startups and investors

How Beyond View Can Help

Navigating the VARA licensing process can be complex, especially for startups unfamiliar with the region’s legal landscape. Beyond View provides end-to-end support to help you:

Choose the right license category
Structure your entity for compliance
Draft KYC, AML, and data protection policies
Coordinate document submissions and regulatory filings
Manage ongoing compliance and reporting obligations

Our goal is to simplify your entry into Dubai’s fast-growing crypto ecosystem. We take care of the technicalities so you can focus on building and scaling your business.

Final Thoughts

A VARA license is your gateway to operating a legal, scalable, and reputable crypto business in Dubai. With the right partner like Beyond View, you can secure your license efficiently and position your company for long-term success in one of the world’s most forward-thinking digital economies.