Are you thinking about starting a virtual asset business in Dubai? If yes, then you will need something called a VARA license. This license is very important if you want to run your crypto or blockchain company legally in Dubai.
We are going to guide you on what a VARA License in Dubai is, why it is important, and how to get it step by step.
What is a VARA License in Dubai?
VARA stands for Virtual Assets Regulatory Authority. The government of Dubai established it to govern and control the business operated by those who deal with virtual assets such as cryptocurrencies, NFTs, and any other services based on blockchain.
Dubai VARA license ensures that businesses that handle digital money act according to guidelines and secure the money of other people.
If you want to:
- Launch a crypto exchange,
- Provide digital wallet services,
- Offer crypto payment systems, or
- Trade NFTs or tokens,
Then you must apply for a VARA license.
Why You Need a Dubai VARA License
Getting a VARA license in Dubai has many benefits. Here is why you should consider getting one:
- Legal Protection – It shows that your company is registered and follows Dubai’s crypto laws.
- Trust – Customers and investors will feel more confident doing business with you.
- Access to the UAE Market – The license allows you to work freely in one of the fastest-growing crypto hubs.
- Easy Banking – With a licensed business, it is easier to open corporate bank accounts.
- Global Reputation – Dubai is becoming a global center for crypto. Being licensed here boosts your brand value.
Types of Dubai VARA Licenses
There are different types of VARA licenses in Dubai based on what your company does:
- Advisory Services – If you offer consulting on virtual assets, this license is for you.
- Broker-Dealer License – If you help others buy and sell digital assets.
- Custody Services – If your company stores virtual assets safely for clients.
- Exchange Services – If you run a platform that allows users to buy or sell crypto.
- Lending and Borrowing – If your business involves lending or borrowing using virtual assets.
- Transfer and Settlement – If you offer payment or settlement services using crypto.
Each license type has different rules and requirements.
Who Can Apply for a VARA License?
The good news is that any business owner, startup, or entrepreneur who wants to offer virtual asset services in Dubai can apply. However, you must:
- Be at least 21 years old.
- Have a clean financial and legal background.
- Show a clear business plan for your virtual asset activities.
- Be ready to follow Dubai’s anti-money laundering (AML) rules.
Step-by-Step Process to Get Your VARA License in Dubai
Let’s walk through the process step by step.
Step 1: Choose Your Business Activity
First, determine the nature of service you want to offer: exchange, wallet service, advisory, etc. This will help you identify the right kind of VARA license.
Step 2: Obtain Professional Support
The process of obtaining a VARA license is beset with documentation and legal proceedings. It is best to take the help of professionals like a consulting firm in Dubai dealing with VARA licensing and compliance.
Step 3: Apply for Initial Approvals
Send your preliminary business information and proposal to the Dubai Virtual Assets Regulatory Authority (VARA). When this is approved, you will be authorized to proceed.
Step 4: Prepare the Documents
You will need to prepare and submit the following:
- Business plan
- KYC (Know Your Customer) policies
- AML policies
- Information about the owners/directors
- Financial statements or funding details
Step 5: Setup Your Company
Register your company in Dubai, usually in the Dubai World Trade Centre (DWTC) free zone, where crypto companies are allowed to operate.
Step 6: Office Space
You will need to rent office space in the designated crypto zone. This shows that you are serious about setting up in Dubai.
Step 7: Submit the Final Application
Now that you have all the documents and your company is set up, submit your final VARA license application.
Step 8: Wait for Approval
Once everything is checked and verified, you will get your Dubai VARA license. This usually takes a few weeks if all documents are correct.
How Much Does a VARA License Cost?
The cost of a VARA license in Dubai depends on:
- The type of license
- The size of your company
- Office rent
- Consulting or legal help
In general, you should expect to spend AED 50,000 to AED 200,000 or more depending on your business activity.
Documents You Will Need
Here is a quick checklist of documents:
- Passport copies of shareholders
- Emirates ID (if available)
- Business plan
- CVs of key team members
- Financial reports (if available)
- Compliance documents (AML/KYC policies)
- Office lease agreement
Conclusion
Securing a Dubai VARA license is a sound move if you are intent on starting a genuine and credible crypto enterprise in the UAE. Even if the process is tiresome and tedious, it opens the door to great prospects in one of the world’s most crypto-hostile cities.
In order to spare your time and money from errors, hire professionals. They will guide you through everything, ranging from issuing the correct license to swift approval.
Thus if you are set to begin your crypto adventure in Dubai, do not delay. Plan your VARA license today!
So start planning your VARA license today!
