COREDO > Cryptocurrency Licence in Dubai

Cryptocurrency Licence in Dubai

Dubai is one of the world’s leading hubs for cryptocurrency businesses and companies working with virtual assets. The jurisdiction offers transparent regulation, modern infrastructure, and specialised supervision by the VARA regulator, making the UAE an attractive destination for launching and scaling VASP projects.

Since 2016, COREDO has been assisting clients with obtaining cryptocurrency licences in Dubai, providing full support — from company registration to obtaining a VARA licence.

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Cost of the service
from 30 000 EUR

Regulatory Framework for Virtual Assets in Dubai

Regulation of cryptocurrency activities in Dubai is based on several key legal acts. The primary document is Dubai Law No. 4 of 2022 on the Regulation of Virtual Assets, which granted VARA the authority to license and supervise all VASPs operating within the emirate (excluding the DIFC zone). VARA acts as a specialised regulator responsible for issuing licences, monitoring licensee activities, and imposing sanctions for violations.

VARA’s regulatory framework includes a comprehensive Rulebook covering all aspects of VASP operations: governance and corporate management requirements, anti-money laundering and counter-terrorist financing (AML/CFT) rules, cybersecurity and technology governance standards, and client fund protection rules. At the federal level, VASP activities are also subject to the UAE Anti-Money Laundering Law (Federal Decree-Law No. 20 of 2018), FATF recommendations, and the requirements of the Central Bank of the UAE.

In August 2025, a cooperation agreement was signed between VARA and the federal regulator CMA (Capital Markets Authority), which established mutual recognition of VASP licences, joint application review procedures, and coordinated monitoring. This means that a VARA licence can effectively provide nationwide authorisation for operations without the need to obtain a separate CMA licence.

Types of VARA Licences

VARA identifies eight categories of regulated virtual asset activities, each requiring a corresponding licence:

Advisory Services

advising clients on matters related to virtual assets, investment strategies, and portfolio management.

Broker-Dealer Services

intermediary activities for buying and selling virtual assets on behalf of clients, including conversion of fiat currencies to crypto-assets and vice versa.

Custody Services

secure storage and management of clients’ virtual assets. This is the only category that must be established as a separate legal entity with an independent licence.

Exchange Services

operation of trading platforms for the exchange of virtual assets.

Lending and Borrowing Services

provision of lending and borrowing services for virtual assets.

VA Management and Investment Services

management of virtual asset portfolios and investment funds.

VA Transfer and Settlement Services

execution of virtual asset transfers between wallets and platforms.

VA Issuance (Category 1)

issuance of virtual assets, including tokens and stablecoins.

A VASP may combine several types of activities within a single licence, with the exception of custody services. VARA rules also provide for a Sponsored VASP category — a model under which start-up companies can operate under the patronage of a licensed VASP until they obtain their own full licence.

Advantages of Obtaining a Crypto Licence in Dubai

Dubai provides a range of significant advantages for companies in the virtual assets sector.

Favorable Tax Regime

The UAE offers no personal income tax and no capital gains tax on crypto asset transactions. Companies operating in free economic zones may benefit from a 0% corporate tax rate, while mainland companies are subject to a 9% rate, with income up to AED 375,000 exempt from taxation. Transfers and conversions of virtual assets are also exempt from VAT.

Conditions for International Business

The UAE has double taxation agreements with more than 140 countries. Foreign investors can own 100% of a company without the need for a local partner. VARA license holders are not subject to residency requirements or restrictions on hiring foreign employees.

Advanced Crypto and Fintech Infrastructure

Dubai actively supports the development of the blockchain and fintech sectors. DMCC is one of the world’s leading hubs for crypto companies, with more than 650 blockchain companies registered there. DMCC residents benefit from full foreign ownership, long-term tax incentives, and an English-speaking business environment.

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Cost of COREDO Services for Obtaining a VASP Licence in Dubai

The cost of COREDO services for obtaining a VASP licence depends on the type of activity and the scale of the project. The company offers comprehensive support broken down by category:

Proprietary Trading

from EUR 30,000

Support for the application process.
Obtaining a licence for proprietary trading of virtual assets.

Broker-Dealer

from EUR 135,000

Full cycle of obtaining a licence for broker-dealer activities.
Payment of VARA fees.

Exchange

from EUR 183,000

Comprehensive support for obtaining an exchange licence.
Company registration.
Document preparation
Interaction with VARA.
Payment of regulatory fees.

In addition to the cost of COREDO services, the annual VARA supervisory fee must be taken into account, which is AED 200,000 (approximately EUR 50,000) per year for most categories (Broker-Dealer, Custody, Exchange, Lending, Management) and AED 80,000 (approximately EUR 20,000) for Advisory and Transfer Services.

All prices include basic expenses. Additional costs may include office lease, HR services, bank account opening, and other administrative procedures.

Payment Terms

Payment for COREDO services for obtaining a cryptocurrency licence in Dubai is made in stages. At the first stage, an advance payment is made for document preparation and initial consultation. Interim payments are tied to key milestones in the process — filing the application for Initial Approval and company registration. The final payment is made after receiving the licence from VARA. The specific payment schedule is formed individually and depends on the selected service package and the type of licensed activity.

Requirements for Obtaining a VASP Licence in Dubai

To obtain a VARA licence, a company must fulfil a set of requirements. The legal entity must be registered in one of Dubai’s free economic zones or on the mainland of the emirate (excluding the DIFC).

Minimum share capital

depends on the type of activity and ranges from AED 100,000 (approximately USD 27,000) for Advisory Services to AED 1,500,000 for Exchange Services. For Broker-Dealer, a range of AED 400,000 to AED 600,000 is required; for Custody — no less than AED 800,000 or 15% of fixed annual expenses (whichever is greater). All VASPs are required to maintain liquid capital of no less than 1.2 times monthly operating expenses.

Management and governance

Key executives must pass VARA’s “Fit and Proper” assessment, confirming their qualifications, professional experience, and reputation. The following officers must be appointed: Compliance Officer (CO), Money Laundering Reporting Officer (MLRO), Chief Risk Officer (CRO), Chief Information Security Officer (CISO), and Chief Technology Officer (CTO).

AML/CFT compliance

The VASP is required to implement a comprehensive anti-money laundering and counter-terrorist financing programme, including Know Your Customer (KYC) procedures, Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) for high-risk clients and politically exposed persons (PEPs), transaction monitoring, and filing of Suspicious Transaction Reports (STRs) with the Financial Intelligence Unit (FIU) of the Central Bank of the UAE. From 2025, full compliance with the FATF Travel Rule is mandatory.

Cybersecurity

Implementation of a Technology Governance and Risk Assessment Framework (TGRAF), Threat-Led Penetration Testing (TLPT), and controls over development environments, wallets, and cryptographic storage media is required.

List of Documents for the Application

To submit an application for a VARA VASP licence, the following set of documents must be prepared:

A completed Initial Disclosure Questionnaire (IDQ).

A detailed regulatory business plan describing the types of virtual asset activities, management structure, revenue model, and development strategy.

Documents on the corporate structure of the company, including information about founders, shareholders, and ultimate beneficial owners (UBOs).

Passports and identification documents of directors, shareholders, and UBOs.

Proof of residential address for all key persons (no older than 3 months).

Proof of source of funds (bank statements for 3 months or tax declarations).

CVs and qualification confirmations for all appointed officers (CO, MLRO, CRO, CISO, CTO).

AML/CFT policies and procedures, including an anti-money laundering programme.

Risk assessment (ML/FT risk assessment).

Cybersecurity policy and Business Continuity Plan (BCP).

Office lease agreement in Dubai.

Confirmation of payment of VARA regulatory fees.

Procedure for Obtaining a Cryptocurrency Licence in Dubai

The process of obtaining a VASP licence in Dubai consists of several sequential stages.

Preliminary preparation and consultation (2–4 weeks).

At this stage, COREDO analyses the client’s business model, determines the optimal licence category and free economic zone for registration, and forms the list of required documents.

01

Filing the application for Initial Approval (Approval to Incorporate, ATI) (4–8 weeks).

The client submits the Initial Disclosure Questionnaire and regulatory business plan through the relevant free economic zone authority or Dubai Economy & Tourism (DET). VARA reviews the application and makes a decision on granting initial approval.

02

Company registration and operational preparation (4–8 weeks).

After receiving the ATI, the legal entity is registered, an office is leased, a bank account is opened, key officers are appointed (CO, MLRO, CRO, CISO, CTO), and AML/CFT policies and technological infrastructure are implemented.

03

Filing the application for a full VASP licence (4–12 weeks).

After completing operational preparation, the application for a full VARA licence is submitted. The regulator reviews all documentation, verifies compliance with requirements, and may request additional information. Based on the review results, VARA makes a decision on licence issuance.

04

The overall timeline for obtaining a licence is typically 4 to 7 months, provided documents are fully prepared. In some cases, the process may take up to 12 months depending on the complexity of the project and the number of activity types requested. The licence is issued for a period of one year and is subject to annual renewal.

Our Experts

The process of obtaining a cryptocurrency licence in Dubai requires a deep understanding of VARA’s regulatory framework and the specifics of the jurisdiction. At COREDO, this area is managed by experienced specialists.

Pavel Kos

Head of Legal at COREDO. Has been with the company since 2017, specialising in licensing of financial and cryptocurrency companies, strategic planning, and interaction with regulators.

Basang Ungunov

Lawyer at COREDO. A specialist with a legal education (Master of Laws), has been with the company since 2022. Handles preparation of licensing documentation, legal analysis, and legal support for projects in the virtual assets sector.

Frequently Asked Questions

What is a VARA licence and why is it needed?

VARA (Virtual Assets Regulatory Authority) is an independent Dubai regulator established in 2022 to oversee virtual asset activities. A VARA licence is mandatory for any company planning to provide services related to crypto-assets in Dubai (excluding the DIFC zone). Operating without a licence is illegal.

What categories of VARA licences exist?

VARA identifies eight categories of licensed activity: Advisory, Broker-Dealer, Custody, Exchange, Lending and Borrowing, VA Management and Investment, VA Transfer and Settlement, and VA Issuance. A company may combine several categories within a single licence, with the exception of Custody Services, which must be established as a separate legal entity.

How much does it cost to obtain a crypto licence in Dubai with COREDO?

The cost of COREDO services depends on the type of activity: from EUR 30,000 for Proprietary Trading, from EUR 135,000 for Broker-Dealer, and from EUR 183,000 for Exchange. Additionally, the annual VARA supervisory fee must be taken into account (from AED 80,000 to AED 200,000 depending on the category), as well as costs for company registration, office lease, and other administrative expenses.

What is the minimum capital for obtaining a VARA licence?

The minimum share capital depends on the activity category. For Advisory Services, it is AED 100,000 (approximately USD 27,000); for Broker-Dealer — from AED 400,000 to AED 600,000; for Exchange — up to AED 1,500,000. All VASPs are also required to continuously maintain liquid capital of no less than 1.2 times monthly operating expenses.

How long does it take to obtain a VARA licence?

The standard timeline for obtaining a licence is 4 to 7 months with fully prepared documents. Depending on the complexity of the project and the number of activity types requested, the process may take up to 12 months. Key factors affecting timelines are the maturity of the compliance programme, readiness of the technological infrastructure, and completeness of the documentation provided.

What tax advantages does Dubai offer for crypto companies?

Dubai offers one of the most favourable tax environments for crypto businesses. There is no income tax for individuals, and no capital gains tax on crypto-asset transactions. In free economic zones, qualifying companies can benefit from a zero corporate tax rate. Conversion and transfer of virtual assets are exempt from VAT. The UAE has concluded double tax avoidance agreements with more than 140 countries.

Can a foreigner own 100% of a company with a VARA licence?

Yes. Dubai allows foreign investors to own 100% of a company without the need to engage a local partner. There are no residency requirements for obtaining a VARA licence, making the jurisdiction accessible to international entrepreneurs.

Does a VARA licence apply beyond Dubai?

Following the signing of the cooperation agreement between VARA and the federal regulator CMA in August 2025, a VARA licence can effectively provide nationwide authorisation for operations across the UAE without the need to obtain a separate federal licence. This significantly expands the geographic scope of licensed companies’ activities.

Get Started with COREDO

Obtaining a VARA licence in Dubai provides access to one of the most dynamic and regulated virtual asset markets in the world. COREDO provides a full cycle of support — from initial consultation and business model analysis to obtaining a VARA licence and subsequent ongoing support. The company has been operating in the legal consulting and licensing sector since 2016 and has practical experience interacting with regulators across various jurisdictions.

To receive an individual consultation and cost estimate, submit an application — our specialists will contact you as soon as possible.