Mastering the Dubai VARA License: Your First Step into the Global Virtual Asset Hub 

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

  • 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

  1. Pre-consultation & business structure planning 
  2. Company formation + DWTC registration 
  3. Submit VARA Initial Disclosure 
  4. Submit detailed business plan based on license type 
  5. Evaluation of tech stack, risk model, and HR structure 
  6. Conditional approval + system readiness and on-site audit 
  7. 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. 

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