Crypto
Mar 22, 2025
Dubai is a global hub for innovation, technology, and business, and the Emirates is leading the world in developing regulations for Web3. Recently, Dubai's Virtual Assets Regulatory Authority (VARA) launched its licensing framework for companies operating in the virtual asset space.
The cost of obtaining a VARA license has received much attention for a good reason.
As a company looking to establish itself in Dubai, one of your first objectives will be to acquire a VARA license. Understanding the costs involved will help you plan and budget for your Web3 project in Dubai. In this blog, we will provide insights into VARA license costs and the factors affecting them to help you get expert legal solutions on Web3.
As you navigate the process of obtaining a VARA license, it pays to consult with a legal expert familiar with the ins and outs of establishing a business in Dubai and the local regulations affecting your operations. At Ape Law, we help clients enter the Web3 Dubai space with our team of Web3 legal experts. We can help you achieve your goals in the region and address the challenges you encounter.
Table of Contents
What Kind of Entities Does the VARA License
Virtual Asset Advisory Services
This category covers businesses that provide recommendations to clients regarding actions or transactions involving virtual assets. These advisory services help clients make informed decisions about virtual assets and may result in the client transacting with the advisor, a related entity, or another party.
Virtual Asset Broker-Dealer Services
Broker-dealer licensing applies to firms that engage in activities such as arranging orders to purchase or sell virtual assets between parties and facilitating transactions between buyers and sellers. A licensed broker-dealer may also act as a dealer for virtual holdings on behalf of its account, solicit orders for virtual assets in exchange for currency or other virtual assets, and make a market using client assets or provide issuance-related services to clients.
Virtual Asset Custody Services
This category covers businesses that provide safekeeping services for virtual assets on behalf of clients. Custodians may also offer virtual asset storage, security, and management services.
Virtual Asset Exchange Services
This category covers businesses that operate platforms or mechanisms that facilitate the exchange of virtual assets for currencies (national or foreign) or other virtual assets.
Virtual Asset Lending and Borrowing Services
Services that enable the lending or borrowing of virtual assets between parties fall under this category.
Virtual Asset Management and Investment Services
This category covers firms that manage portfolios or provide investment services related to virtual assets on behalf of clients.
Virtual Asset Transfer and Settlement Services
This category covers businesses that facilitate the transfer and settlement of virtual assets between parties.
Virtual Asset Issuance License
VARA also offers a Virtual Asset Issuance License (Category 1), which pertains to services related to the offering and trading virtual tokens.
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VARA License Cost
The Cost of Getting a VARA License in Dubai
The cost of obtaining a Virtual Asset Regulatory Authority (VARA) license in Dubai varies depending on the virtual asset service an entity intends to provide. The fees are divided into three main categories:
1. License Application Fee
This fee is required when applying for a license to conduct a specific Virtual Asset (VA) activity. An additional License Extension Fee applies if an entity wants to engage in multiple VA activities. The application process only begins after these fees are paid.
Virtual Asset Advisory Services: AED 40,000
Virtual Asset Broker-Dealer Services: AED 100,000
Virtual Asset Custody Services: AED 100,000
Virtual Asset Exchange Services: AED 100,000
Virtual Asset Lending and Borrowing Services: AED 100,000
Virtual Asset Management and Investment Services: AED 100,000
Virtual Asset Transfer and Settlement Services: AED 40,000
2. License Extension Fee
For entities applying to conduct more than one VA activity, an extension fee of 50% of the lower License Application Fee(s) applies for each additional activity.
For example, if a company initially applies for a Broker-Dealer Services license for AED 100,000 and later adds Advisory Services, the extension fee for Advisory Services would be 50% of AED 40,000, which is AED 20,000.
3. Annual Supervision Fee
Once a company receives its VARA license, it must pay an annual fee for each VA activity it is authorized to conduct before it begins operating the respective activity.
Virtual Asset Advisory Services: AED 80,000 per year
Virtual Asset Broker-Dealer Services: AED 200,000 per year
Virtual Asset Custody Services: AED 200,000 per year
Virtual Asset Exchange Services: AED 200,000 per year
Virtual Asset Lending and Borrowing Services: AED 200,000 per year
Virtual Asset Management and Investment Services: AED 200,000 per year
Virtual Asset Transfer and Settlement Services: AED 80,000 per year
Additional Costs and Considerations
Discretionary Fees
VARA may impose additional or modify existing fees if enhanced regulatory oversight is required or in response to complaints against a Virtual Asset Service Provider (VASP).
External Fees
VARA fees are separate from those charged by other competent authorities within or outside the UAE.
Issuance Approval Fees
Entities seeking approval to issue a virtual asset may be subject to additional fees at VARA’s discretion.
The total cost of obtaining and maintaining a VARA license depends on the number and type of virtual asset activities an entity undertakes and any additional regulatory fees imposed by VARA.
Setting up a crypto business in the UAE can be complex, but Ape Law makes it smooth. As Web3-native legal experts, we handle crypto licensing, business structuring, and compliance so you can focus on growth. Whether you’re launching a new coin, token, and/or NFT, expanding operations, or optimizing for tax efficiency, our team ensures a smooth and legally sound setup. Ready to establish your business in the UAE? Book a free consultation today to easily navigate the legalities of creating a Web3 business in the UAE!
How to get a VARA License for Your Crypto Venture in UAE
1. Secure Expert Legal Guidance for Your VARA License Application
Start your journey toward obtaining a VARA license by seeking expert legal guidance. A qualified compliance expert or legal counsel can help you understand the regulations, ensure you meet all requirements, and navigate the application process. The team at Ape Law specializes in crypto licensing in the UAE. They help you with business structuring, compliance, and all aspects of the VARA license application so you can focus on business growth.
2. Conduct Thorough Research and Compliance Assessment
Next, you should conduct detailed research to learn precisely what VARA requires for your crypto venture to receive a license. The requirements vary significantly depending on several factors, including your business model and jurisdiction. A compliance assessment will help you identify your organization's needs to meet the regulatory standards.
3. Organize and Prepare the Necessary Documentation
Gathering the required documentation is essential in the VARA license application process. You’ll need to compile significant information, including your business plan, financial statements, personnel details, and information about your security measures and AML/KYC procedures.
4. Submit Your VARA License Application
Once you have prepared all necessary documentation, you can submit your application to VARA for review. Be ready to respond promptly to any requests for additional information or clarification.
5. Application Review and Approval
VARA will conduct a thorough review of your application. This process may take several weeks or even months to complete and could involve multiple rounds of inquiries. Responding quickly to requests for additional information can help facilitate a smooth review process.
6. Maintain Compliance After Receiving Your VARA License
After obtaining your VARA license, your crypto business must maintain compliance with all regulatory requirements. Failing to do so could result in penalties, fines, or even license revocation.
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Benefits of Getting the VARA License
Legitimacy and Compliance: Why You Want a VARA License
Businesses need a VARA license to operate legally in Dubai’s virtual asset space. Without this license, a company cannot open for business. A VARA license provides legal authorization to operate in Dubai, ensuring businesses comply with local laws and regulations governing virtual assets. This compliance also helps protect consumers and mitigate risks associated with virtual asset operations.
Investor Trust: How VARA Licensure Boosts Credibility
In addition to regulatory compliance, being licensed by VARA enhances credibility and trust among investors and clients. Obtaining a VARA license signifies adherence to established regulatory standards. This helps businesses attract the investment needed to grow and succeed.
VARA License Benefits for Businesses Seeking Growth Opportunities
Dubai is a global hub for blockchain and cryptocurrency innovation. As such, licensed firms can access a thriving market with numerous growth opportunities. VARA also fosters a supportive regulatory environment that encourages innovation, providing firms with the necessary framework to develop and expand their services.
VARA License Benefits for Business Operations
VARA offers various licensing categories tailored to virtual asset services, including advisory, exchange, custodial, and payment services. This flexibility allows businesses to choose a license that fits their operational model best. Additionally, VARA provides continuous guidance and support throughout the licensing process and beyond, helping firms navigate compliance requirements effectively.
Enhanced Operational Standards
Achieving compliance is not the end of the road for VARA licensees, as the operational standards for firms licensed by VARA are exceptionally high. License applicants are required to implement a robust compliance and anti-money laundering framework. They also have to implement elaborate cybersecurity policies to address risks associated with virtual asset businesses.
This commitment protects consumers and helps firms mitigate risks associated with virtual asset operations. Additionally, licensed entities must engage in ongoing training for staff to stay updated on regulatory changes, ensuring they maintain high operational standards at all times. Firms certified by VARA must put in place detailed training and development plans for their employees and senior management, thus ensuring commitment to robust operational standards and keeping pace with the fast-developing field of virtual assets.
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