How to obtain a VARA license in Dubai in 2025

In 2025 the virtual assets market in the UAE is showing exponential growth: the volume of cryptocurrency transactions in the region exceeded $35 billion, and Dubai has become one of the three global hubs for crypto business and fintech startups. But behind this success lies strict regulation: only 11% of companies that applied for a VARA Dubai license successfully complete all licensing stages. Why are so many applications rejected? How can you avoid common mistakes and turn a VARA license into a strategic advantage for your business?

In this article I will examine in detail how the COREDO team implements projects to obtain a Dubai virtual assets license, what key requirements the Virtual Assets Regulatory Authority Dubai imposes, and what business benefits a VARA license opens up for international companies.

Advantages of a VARA license for crypto businesses

In practice COREDO has shown that a VARA license significantly increases investor and corporate client confidence, provides legal access to banking services, reduces regulatory barriers for crypto businesses and opens new opportunities for integration with the region’s leading financial institutions.

COREDO clients who have completed Licensing note the following strategic advantages:

• Investment appeal: a VARA license becomes a marker of transparency and reliability, which is critical for venture funds and institutional investors.
• Business scaling: legal VASP status in Dubai allows rapid expansion of operations into the GCC, Saudi Arabia and other countries in the region.
• Integration with UAE banking structures: banks are more willing to open accounts for companies with a VARA license, access to payment solutions and credit products is simplified.
• Strategies for entering the UAE market: a VARA license facilitates interaction with government authorities, reduces the risk of operation blocking and simplifies tax planning.

Comparing VARA with other jurisdictions

COREDO’s practice confirms: a VARA license favorably differs from similar permits in the EU, Asia and Africa by several key parameters:

• Timeframes: in Dubai the process takes 2–6 months, whereas in the EU it ranges from 3 to 12 months, and in Asia up to 8 months.
• compliance requirements: VARA imposes high standards for AML/CFT, KYC, corporate structure transparency and technical security standards, which align with international FATF standards.
• Investment attractiveness: Dubai offers more flexible conditions for foreign companies, low taxes and a high level of investor protection.
• Legal risks for crypto business: in the UAE there is no risk of sudden legislative changes, which is characteristic of some Asian and African countries.

Cryptocurrency regulation in Dubai (VARA)

Since 2022 VARA has been implementing comprehensive standards for AML/CFT, KYC and corporate transparency, which helps create a safe and predictable business environment for crypto and fintech companies.

VARA requirements for VASPs: AML, KYC, transparency

The solution developed at COREDO for clients includes:

• AML/CFT compliance: implementation of procedures for client identification, transaction monitoring, regular compliance audits and staff training.
• KYC: automation of processes for verifying identity, source of funds and beneficiaries.
• Corporate transparency: disclosure of ownership structure, reporting according to international standards, implementation of a disclosure policy.

Successful registration of a VASP in Dubai requires not only compliance with formal requirements but also the real implementation of a compliance culture in business processes. COREDO’s practice shows that companies investing in compliance pass VARA checks faster and without additional requests.

VARA restrictions on privacy tokens and marketing

VARA Administrative Order 2023/2024 introduced a number of restrictions:

• Ban on privacy tokens: the UAE prohibits operations with anonymous tokens (Monero, Zcash), which reduces the risks of money laundering and terrorism financing.
• Marketing activities of VASPs: all advertising campaigns must undergo prior approval by VARA, and information about products and services must meet transparency and investor protection requirements.
• Client data protection and information security: VARA requires the implementation of modern IT solutions for data storage and processing, regular external audits and infrastructure certification.

How to obtain a VARA license in Dubai

At COREDO we support clients at all stages of obtaining a VARA Dubai license, starting with choosing the optimal incorporation zone and ending with the implementation of compliance procedures.

Mainland or free zone: which to choose?

choice of jurisdiction is a strategic step:

• Free zones (DMCC, DWTC, DET): offer simplified registration procedures, tax incentives, fast access to infrastructure and the possibility of 100% foreign ownership.
• Mainland: requires a local partner, but opens access to government tenders and a wider range of banking services.

The COREDO team has carried out projects both in free zones and on the mainland, helping clients optimize taxation and minimize legal risks.

Steps to obtain a VASP license

The procedure for obtaining a VARA license includes:

1. Disclosure Questionnaire: preparation of a questionnaire disclosing information about beneficiaries, sources of funds, the business model and IT infrastructure.
2. Approval to Incorporate (ATI): obtaining preliminary permission to register a company from VARA and Dubai Economy and Tourism (DET).
3. Submission of documents for the VASP License: includes the articles of association, business plan, AML/KYC policy, technical security standards, corporate structure.
4. Compliance audit: external audit of business processes, IT systems, AML/CFT procedures.
5. Interaction with the regulator: responses to additional VARA requests, provision of clarifications on structure and business model.

Application review times in 2025 range from 2 to 6 months, depending on the completeness of the documents and the quality of compliance.

Requirements for the business plan and IT infrastructure

The business plan for a VARA license should include:

• Description of the target market, financial forecasts, scaling strategies.
• Detailed AML/KYC procedures, scenarios for responding to suspicious operations.
• Risk assessment, investor protection mechanisms, plans for implementing compliance audits.
• Technical security standards: data protection, backups, access control, regular external audits of IT infrastructure.

COREDO’s practice shows that a high-quality business plan and a transparent corporate structure speed up obtaining a VARA license and reduce the likelihood of refusal.

VARA compliance checks: audit and liability

VARA conducts a comprehensive compliance check:

• External audit for VASP: assessment of business processes, IT systems, AML/CFT procedures.
• KPI for compliance implementation: VARA requires regular reporting on key performance indicators (KPIs), including KYC processing speed, the number of detected suspicious transactions, the level of transparency of the corporate structure.
• VASP liability in the UAE: violations of VARA requirements are subject to fines, temporary or full license revocation, and criminal liability for illegal operations.

Types of VARA licenses: MVP, FMP, temporary

Depending on the stage of business development, VARA offers several types of licenses:

• Minimum Viable Product (MVP) license: designed for testing the business model, launching pilot projects, limited in the volume of operations and number of clients.
• Full Market Product (FMP) license: allows full-scale activities, expanding the client base, integrating with UAE banking structures.
• VARA temporary permit: a temporary authorization to start business operations before obtaining the main license.

MVP and FMP licenses — requirements and limitations

Transition from an MVP to an FMP license requires:

• Confirmation of successful implementation of compliance procedures.
• Passing an external compliance audit.
• Updating the business plan and IT infrastructure to account for operational growth.

Risks of refusal to issue an FMP license are related to non-compliance with VARA requirements, insufficient transparency of the corporate structure, or detected violations in AML/KYC.

Temporary permits for starting a business

The VARA temporary permit allows starting operations before all licensing stages are completed. In practice COREDO uses this tool for rapid testing of the business model, attracting initial clients and preparing for the transition to an FMP license.

This enables launching the business in compressed timeframes, minimizing the risks of long waits for license approval.

Cost and renewal of the VARA license in Dubai

The cost and renewal of a VARA license in Dubai are important questions for companies wishing to operate in the virtual assets sphere in the UAE. To launch and successfully run a business you need to consider not only the initial expenses for license application, but also the annual fees for its renewal, as well as compliance with all VARA regulator requirements. Below we will consider the main categories of expenses associated with obtaining and maintaining a VARA license in Dubai.

Cost of a VARA license: main expenses

The cost of a VARA license in Dubai ranges from $20,000 to $80,000+, depending on the license type, volume of operations and chosen incorporation zone. Additional expenses include:

• Annual VARA fees.
• Operational expenses for compliance, external audit, IT infrastructure.
• Costs for legal support and updating the business plan.

The solution developed by COREDO allows optimizing costs, increasing the ROI of a crypto company and avoiding unexpected expenses at the license renewal stage.

Renewal of a VARA license: requirements and audit

Renewal of a VARA license requires:

• Annual external compliance audit.
• Updating the business plan, AML/KYC procedures and IT infrastructure.
• Providing reporting on key KPIs and corporate structure transparency.

Renewal timeframes: up to 2 months, provided all documents are submitted on time and the audit is passed.

VARA penalties: how to avoid sanctions

COREDO’s practice shows that regular compliance audits, staff training and implementation of investor protection mechanisms minimize legal risks and help avoid sanctions.

Thus, complying with compliance requirements and implementing preventive measures is the key to business security; below we will consider how an entrepreneur should prepare and file an application.

How to prepare and submit an application as an entrepreneur

The process of preparing and submitting an application as an entrepreneur requires strict adherence to all stages and regulatory requirements, especially when it comes to licensing new business directions. Understanding structural and documentary nuances will save time at the submission stage and increase the likelihood of approval. Below we will look at how to prepare and submit an application using a step-by-step checklist, for example, for obtaining a VARA license.

How to get a VARA license: checklist

The COREDO team recommends the following checklist:

• Prepare the Disclosure Questionnaire.
• Develop a business plan that takes VARA requirements into account.
• Implement AML/KYC procedures, conduct an internal compliance audit.
• Ensure transparency of the corporate structure.
• Prepare IT infrastructure that meets VARA technical security standards.
• Assemble the package of documents for the application: articles of association, information about beneficiaries, financial statements, disclosure policy.

How to choose a consulting partner?

Expert support for licensing is the key to success. COREDO’s experience shows that choosing a reliable partner allows you to:

• Minimize the risk of license refusal.
• Save time and resources on preparing documents and implementing compliance.
• Gain access to best market practices, up-to-date analytical data and strategic solutions.

Recommendations for businesses in 2025

A VARA license is not only legal status but also a strategic tool for scaling business, increasing investment attractiveness and integrating with UAE financial structures. The practical steps described above help minimize legal risks, increase corporate transparency and ensure long-term success in the virtual assets market.

To assess the success of VARA compliance implementation use the following KPIs:

• KYC processing speed.
• Number of detected suspicious transactions.
• Level of transparency of the corporate structure.
• ROI from compliance implementation.

Questions about the VARA license for entrepreneurs

A VARA license opens access to banking services, increases investor trust, facilitates business scaling and reduces regulatory barriers.

Disclosure Questionnaire, business plan, articles of association, information about beneficiaries, AML/KYC policy, technical documentation for IT infrastructure.

External compliance audit, assessment of business processes, IT systems check, corporate structure analysis.

Free zones (DMCC, DWTC, DET): for rapid launch and tax incentives; mainland: for access to government tenders and expanded banking services.

Fines up to $500,000+, license revocation, criminal liability.

Implement procedures for client identification, transaction monitoring, regular compliance audits and staff training.

Undergo an annual external audit, update the business plan and compliance procedures, provide KPI reporting.

Comparison of the VARA license with licenses in the EU, Asia, Africa

In conclusion, a VARA license is not just a formal document but a strategic asset for international crypto businesses. COREDO’s experience confirms: proper preparation, implementing compliance and expert support are the key conditions for success in the UAE virtual assets market.