How to Get a VARA Crypto License in Dubai (2025 Guide)

Dubai has positioned itself as a global leader in digital asset regulation through the establishment of the Virtual Assets Regulatory Authority (VARA). For any crypto business in Dubai, obtaining a VARA license is now a legal requirement - and a critical step toward building credibility with investors and clients.

This guide walks you through the process of obtaining your VARA crypto license in Dubai, outlining the stages, requirements, and key considerations for a smooth approval journey.

What is a VARA License?

The VARA licensing regime governs all Virtual Asset Service Providers (VASPs) that operate in or from Dubai. A VASP refers to any business offering professional services related to digital assets, including exchanges, brokers, custodians, and advisors.

Operating without a VARA license is not permitted. Each applicant must demonstrate compliance with the VARA Company Rulebook, which covers governance, capital adequacy, AML/CTF controls, and technology standards.

A VARA license not only ensures legal authorization but also signals that your organization meets Dubai’s standards of transparency, governance, and investor protection - setting you apart in one of the world’s fastest-evolving crypto markets.

The Eight VARA Licensed Activities

When applying for your VASP license in Dubai, you’ll need to select one or more categories that best reflect your business model:

1. Advisory Services:

   Providing advice or guidance on virtual asset investments and projects

2. Broker-Dealer Services:

   Arranging or executing transactions on behalf of clients

3. Custody Services:

   Safekeeping and segregating client digital assets

4. Exchange Services:

   Operating a platform for listing and trading digital assets

5. Lending & Borrowing Services:

   Facilitating loans or yield-based virtual asset products

6. Management & Investment Services:

   Managing client portfolios or virtual asset funds

7. Transfer & Settlement Services:

   Handling payments, settlements, and wallet transfers

8. Virtual Asset Issuance (Category 1):

   Issuing or launching new virtual assets, including stablecoins

Each activity has its own regulatory expectations and capital thresholds under VARA’s framework.

The VARA Licensing Process: Step by Step

The process to obtain a VARA license in Dubai involves two primary stages.

Stage 1 - Approval to Incorporate (ATI)

• Submit an Initial Disclosure Questionnaire (IDQ) to Dubai’s Department of Economy and Tourism (DET) or a relevant free zone

• Provide supporting documentation, including your business plan, beneficial ownership details, and senior management profiles

• Pay the initial application fee (usually 50% of the total)

• Once approved, you’ll receive the Approval to Incorporate (ATI) - allowing you to establish your legal entity, office, and local operations

  
  

At this stage, you are not yet authorized to carry out any virtual asset activities.

Stage 2 – Full VASP License

• Prepare and submit the full documentation package as outlined by VARA

• Engage with VARA through review meetings, clarifications, and interviews as required

• Pay the remaining license and first-year supervision fees

• Upon successful evaluation, you will receive your VASP License, with any operational conditions defined by VARA

Capital requirements and supervision fees are detailed in VARA’s Company Rulebook and Schedule B of the Regulations.

A VARA license not only ensures legal authorization but also signals that your organization meets Dubai’s standards of transparency, governance, and investor protection - setting you apart in one of the world’s fastest-evolving crypto markets.

Key Requirements for VARA Licensing in Dubai

To qualify for a VARA crypto license, applicants must demonstrate strong compliance and operational readiness across five areas:

1. Capital Adequacy: 

   Minimum paid-up capital varies by activity type

2. Governance: 

   A defined management structure with accountable oversight

3. AML/CTF Controls:

   Full alignment with UAE AML laws and FATF standards

4. Policies and Disclosures: 

   Clear frameworks for client protection and risk transparency

5. Local Presence:

   Demonstrable operations in Dubai, including staffing and physical office space

The full process typically takes 4–6 months, depending on business complexity and documentation quality.

Common Pitfalls to Avoid

Even experienced operators can face delays or rejections. The most common issues include:

• Applying under the wrong license category

• Submitting generic compliance manuals instead of VARA-specific frameworks

• Failing to demonstrate UAE substance, such as local staff or office space

• Neglecting IT security and wallet infrastructure until late in the process

Avoiding these mistakes requires early strategic planning and experienced regulatory guidance.

Why Work with Pnyx Hill

Securing a VARA license in Dubai demands both regulatory precision and operational foresight.

At Pnyx Hill, we guide businesses through every step - from the Initial Disclosure Questionnaire to the final license grant - ensuring compliance, readiness, and efficiency throughout the journey.

Our VARA advisory services include:

• Full licensing support for all eight regulated activities

• Regulatory engagement and documentation review

• AML/CTF and governance framework development

• Capital and liquidity assessments

• Ongoing compliance and supervision readiness

Final Thought

Obtaining a VARA crypto license is more than a regulatory milestone - it’s an investment in credibility and longevity. Dubai’s structured approach to virtual asset licensing has created one of the most trusted environments for digital asset innovation.

If you’re planning to launch or scale your crypto business in the UAE, our specialists at Pnyx Hill can help you navigate the process from strategy to submission.

Book a consultation to explore how we can support your VARA licensing journey and position your business for long-term success.