Why Dubai?
Dubai is no longer just the business capital of the Middle East.
It is rapidly emerging as a global center for next-generation digital finance, covering:
- Cryptocurrency
- Blockchain
- Web3
- NFT
- DeFi
- GameFi
Key Highlights:
- VARA, the world’s first independent Virtual Assets Regulatory Authority, was established in Dubai
- Major global exchanges such as Binance, Crypto.com, and Bybit are already operating under VARA
- 0% personal income tax and a unified 9% corporate tax regime
- ️Transparent and clear legal framework minimizing regulatory risk
What is VARA?
VARA (Dubai Virtual Assets Regulatory Authority) is an independent regulatory body established by the Dubai Government in 2022.
It supervises and regulates all virtual asset-related activities within the Emirate of Dubai.
Jurisdiction:
- Dubai Mainland, particularly including the DWTC Free Zone
- Exceptions: DIFC and ADGM have separate regulatory authorities
Who Needs a VARA License?
If your business falls under any of the categories below and operates in Dubai, a VARA license is mandatory:
Business Type | Examples |
Exchange Platforms | CEX, DEX |
Asset Management | Crypto funds, digital portfolios |
Custody Services | Hot/cold wallets |
Remittance/Payments | Crypto payment gateways, transfer platforms |
DeFi/DAO Platforms | Decentralized finance services |
NFT Marketplaces | Art or gaming asset platforms |
Types of VARA Licenses (7 Categories)
License Type | Description |
1. Advisory Services | Financial, legal, or technical advice on virtual assets |
2. Broker-Dealer Services | Buying/selling brokerage or market-making |
3. Custody Services | Secure storage and management of client assets |
4. Exchange Services | Operating a digital asset exchange platform |
5. Lending & Borrowing | Crypto lending and collateral-based services |
6. VA Management & Investment | Investment advisory and portfolio management |
7. Transfer & Settlement | Infrastructure for wallet-to-wallet transfers |
You may apply for multiple license types based on your business model.
Key Application Requirements
1. Business Entity Setup
- A UAE-based company is mandatory (recommended: DWTC Free Zone)
- Can be either Free Zone or Mainland
2. Minimum Paid-Up Capital (Indicative)
License Type | Capital Requirement (AED) |
Advisory | AED 50,000 – 100,000 |
Exchange | AED 1,000,000+ |
Custody | AED 250,000+ |
Capital may vary based on actual business model.
3. Internal Compliance & Staffing
- AML/CFT and KYC system implementation
- Risk and cybersecurity documentation
- Appointed compliance officer with relevant experience
4. Technical Requirements
- Platform security architecture
- API and server locations
- Data backup and disaster recovery systems
Application Process: Step-by-Step
- Pre-consultation & business structure planning
- Company formation + DWTC registration
- Submit VARA Initial Disclosure
- Submit detailed business plan based on license type
- Evaluation of tech stack, risk model, and HR structure
- Conditional approval + system readiness and on-site audit
- Final VARA license issuance
Estimated timeline: 4–6 months (including preparation)
Advantages of the VARA License in Dubai
Advantage | Description |
Global Credibility | Trusted by leading exchanges and projects |
Crypto-Friendly | Progressive digital asset regulations |
Tax Efficiency | 0% personal tax, 9% corporate tax |
Regulatory Clarity | Operate within a secure legal framework |
MENA Market Access | Strategic position for regional expansion |
Final Thoughts: Now is the Time
As the virtual asset space becomes more regulated worldwide, there are few places where businesses can grow with legal clarity and global legitimacy.
Dubai’s VARA framework offers one of the best opportunities for ambitious Web3 and digital asset firms.
Partner with Premia TNC for a smooth, secure, and strategic entry into Dubai’s virtual asset economy.
