Regulated Cryptocurrency License in the UAE
Interested in a cryptocurrency license in Dubai? Our service streamlines the process, handling the legal aspects to ensure your venture meets all regulatory requirements for a successful launch in the crypto market.
Regulated Cryptocurrency License in the UAE
Interested in a cryptocurrency license in Dubai? Our service streamlines the process, handling the legal aspects to ensure your venture meets all regulatory requirements for a successful launch in the crypto market. Crypto & VARA Registration in the UAE Cryptocurrency, or crypto, is a digital currency secured by cryptography, making it highly resistant to counterfeiting or manipulation. Unlike traditional money issued by central banks, cryptocurrencies are decentralized and typically run on blockchain technology. This technology features a distributed ledger that records all transactions across a network, ensuring transparency and security. Cryptocurrencies like Bitcoin and Ethereum facilitate direct peer-to-peer transactions without intermediaries, improving privacy and reducing banking fees. The Dubai Virtual Assets Regulatory Authority (VARA), established to regulate and oversee digital assets in the UAE, addresses the unique risks and growth of the crypto market. It offers a secure framework to protect investors while encouraging innovation. Launched in 2022, VARA governs cryptocurrency exchanges, initial coin offerings (ICOs), wallet providers, and custodial services. Businesses must register with VARA and obtain appropriate licenses by disclosing financials, operations, and compliance measures. VARA aligns with the UAE’s vision of creating a secure, regulated environment for digital assets, establishing Dubai as a global hub for crypto innovation.
Crypto & VARA Registration Advantages
Regulatory Clarity and Compliance
VARA offers a well-defined regulatory framework, minimizing legal uncertainties.
Enhanced Trust and Credibility
A VARA license enhances business credibility, meeting AML and KYC standards.
Market Access and Global Reach
VARA-registered businesses benefit from Dubai’s strategic global location.
Investor and Consumer Protection
Licensing requirements promote transparency, cybersecurity, and operational integrity.
Tax Incentives
Free zones offer benefits like zero corporate/personal taxes and VAT exemptions.
Innovation-Friendly Environment
VARA supports DeFi, crypto advisory, and tokenized asset innovation.
Cryptocurrency Licenses Available in the UAE.
✅ IFZA Crypto License
Issued by the International Free Zone Authority, suitable for blockchain consulting, wallets, and crypto advisory.
✅ DMCC Crypto License
Allows proprietary crypto asset trading, with robust compliance measures.
✅ ADGM (Abu Dhabi Global Market)
Offers a regulated framework via FSRA for exchanges, custody, and asset management.
✅ Cryptocurrency Exchange License
Required for crypto exchanges, ensuring compliance with VARA or FSRA.
✅ DAFZA (Dubai Airport Free Zone Authority)
Offers standard licenses for blockchain R&D, consultancy, and fintech solutions.
✅ Distributed Ledger Technology Services License
For non-financial blockchain applications like supply chain and data management.
✅ DWTC Crypto License
Supports exchanges and businesses through collaboration with VARA.
✅ Crypto Asset License
VARA-regulated license for crypto exchange, wallet services, and asset management.
Steps to Obtain a VARA No Objection Certificate (NOC) for Proprietary Trading
1. Initial Disclosure Questionnaire (IDQ): Submit business and financial details. Firms like Gloacefintax assist in preparation.
2. VARA Assessment: VARA reviews IDQ and may request more info before issuing an in-principle NOC.
3. Finalization: Pay the NOC fee to receive the final approval, allowing incorporation via a free zone authority.
Crypto & VARA
Registration Process
(Timeline: 10–17 weeks)
Step 1: Initial Consultation and Business Setup
Determine license type, structure, and prepare VARA documents (1–2 weeks).
Step 2: Pre-Approval Application Submission
Submit business plan, AML/KYC policies, and structure (2–3 weeks).
Step 3: In-Depth Due Diligence
VARA reviews key personnel and compliance framework (4–6 weeks).
Step 4: Final License Application
Submit the completed application and address feedback (2–4 weeks).
Step 5: Issuance of License
Pay final fees and obtain VARA crypto license (1–2 weeks).
Other Regulatory Authorities
FSRA (Abu Dhabi Global Market)
Regulates digital asset businesses, ensuring consumer protection and market integrity.
DFSA (Dubai Financial Services Authority)
Oversees DIFC-based firms, maintaining international AML/KYC standards.
SCA (Securities and Commodities Authority)
Federal body regulating digital asset trading and ensuring legal compliance.
Procedure to Get a Cryptocurrency License in the UAE
1. Dubai World Trade Centre (DWTC)
2. Dubai Multi Commodities Centre (DMCC)
3. Abu Dhabi Global Market (ADGM)
Documents Required for Crypto Registration
Required documents vary based on the chosen jurisdiction: VARA, DFSA, FSA, and SCA.
| Document | VARA | DFSA | FSRA | SCA |
|---|---|---|---|---|
| Business Plan | Detailed business objectives, financial projections, and crypto activities | Business objectives, scope, financials, and operational details | Detailed business plan with market analysis, projections | Strategic business plan outlining scope, services, and risk management |
| Corporate Structure | Ownership structure, shareholder details, and board members | Detailed ownership and corporate governance | Full disclosure of ownership structure, key personnel, and board | Detailed shareholder and ownership structure |
| AML/KYC Policies | AML/KYC policies, onboarding, monitoring, and reporting | Comprehensive AML/KYC policies and controls | Robust AML/KYC frameworks with client due diligence procedures | AML and KYC compliance aligned with UAE regulations |
| Compliance Policies | Policies for regulatory adherence, data security, and operational integrity | Compliance policy detailing internal and external controls | Compliance management plan, including a designated compliance officer | Detailed compliance policies, controls, and processes |
| Cybersecurity Framework | Security measures, data protection, and recovery plans | Cybersecurity policy for data protection, backup, and incident response | Cybersecurity protocols for data encryption, access control, and incident response | Defined cybersecurity measures for data security and risk management |
| Financial Statements | Audited financials or capital adequacy proofs | Proof of financial stability through audited statements | Audited financials or financial forecasts for new businesses | Financial statements or proof of sufficient capital |
| Background Checks for Key Personnel | Background checks and qualifications for directors and officers | Background checks, experience, and qualifications for key personnel | Detailed background checks on management and board members | Background checks and qualifications verification for shareholders and key roles |
| Risk Management Framework | Risk management plan, addressing specific crypto-related risks | Risk assessment and mitigation policies | Documented risk management strategies for asset protection | Detailed risk management framework for market stability and security |
| Application Form | Completed VARA application specifying license type and crypto activities | Completed DFSA application, specifying type of services and operations | Completed FSRA application with a detailed scope of operations | SCA application outlining activities, licensing needs, and regulatory compliance |