How to Get a VARA License in Dubai | A Practical Guide for Crypto and Web3 Businesses

The crypto and Web3 businesses have rapidly made Dubai a major global destination. It is because of its clear, comprehensive and very well-structured virtual regulations of the assets. A VARA license must be obtained by any company in order to operate legally and earn the trust of investors. Especially companies offering crypto exchanges, wallet services, brokerage, custody, or token launches. The following guide will help you understand and walk you through the most essential parts of the various kinds of license types and their key requirements to successfully get full approval and compliance with the authorities. You’ll also have an understanding of how Arnifi’s experts will support you in handling the documents, filing, and the regulatory steps, helping you with setting up a fully compliant crypto business in Dubai, making it smoother, faster, and far more manageable.

Introduction

Cryptocurrencies have rapidly become one of the leading global hubs in Dubai. It has virtual asset regulations that are clear and well-structured. VARA is at the centre of this framework that supervises and approves any businesses related to crypto in Dubai (excluding the DIFC).In order to operate legally and win the trust of investors, getting a VARA license is essential in order to run a crypto exchange business, wallet service, or launch of any token. In this guide, we’ll walk you through the entire process of licensing and understand what it takes to build a successful, compliant, and secure crypto business in Dubai. 

What VARA Actually Regulates?

VARA oversees virtual assets in Dubai mainland and free zones, enforcing rules on exchanges, custody, brokering, ICO/ITO issuance, and compliance monitoring. It mandates investor safeguards against fraud and illicit finance as per the 2022 Virtual Assets Law. Core focus includes transparent operations and alignment with global FATF standards.​ 

An Initial Coin Offering (ICO) or Initial Token Offering (ITO) is a fundraising method used by companies to raise capital for new projects or ventures.

Who Needs a VARA License?

Any firm running a crypto exchange, operating custodial wallets, offering brokerage, managing assets, issuing tokens, or providing transfer/settlement services requires VARA approval. Web3 businesses handling customer funds or digital assets in Dubai must comply, excluding DIFC-regulated entities, because it is an independent financial free zone with its own regulatory body and legal framework. Unlicensed operations risk fines, suspensions, or blacklisting.​

Types of VARA Licenses

• Advisory Services: Guidance on virtual assets without handling funds.​
• Broker-Dealer: Facilitating trades between parties.​
• Custody: Secure storage of digital assets.​
• Exchange Services: Platforms for buying/selling virtual assets.​
• Lending/Borrowing: Crypto loan and borrow operations.​
• Virtual Asset Management: Portfolio and fund management.​
• Transfer and Settlement: Payment and clearing services.​
• Issuance Services: Token launches and distributions.​

Requirements Before You Apply

Establish a Dubai legal entity via the Dubai Economy and Tourism DET or free zone approval. Conduct fit-and-proper checks on directors/shareholders, plus robust tech infrastructure and cybersecurity. Implement AML/KYC frameworks, transparent tokenomics, and meet category-specific capital thresholds.​

Step-by-Step Process to Get a VARA License

Choose your activity category and set up the business structure with the Initial Disclosure Questionnaire to DET. Prepare compliance docs like risk plans, AML manuals, and cybersecurity policies. Submit VASP application to VARA for review, including tech audits.​

Receive Approval in Principle, pay fees, then secure final license issuance. Maintain ongoing reporting for supervision.​

VARA Licensing Timeline

The process typically spans 3-6 months, varying by category complexity and application quality. Simpler advisory licenses are faster; exchanges are longer due to tech reviews. Delays occur from incomplete docs or cybersecurity gaps.​

Cost Estimates for VARA Licensing

• Application and Licensing Fees:
  
  • Smaller scopes like Advisory or Transfer & Settlement services start around AED 40,000 to AED 80,000.
    
  • Larger licenses like Broker-Dealer, Custody, or Exchange typically require AED 100,000 to AED 200,000 or more in application and annual supervision fees.
    
  • For example, an exchange and broker combined could pay AED 400,000 annually in supervision fees.
    
• Capital Requirements:
  
  • Advisory licenses may require approximately AED 100,000 capital locked in trust accounts.
    
  • Broker-Dealer or Custody services could require AED 400,000 to AED 600,000 minimum capital.
    
  • Exchange licenses demand significant capital, often AED 800,000 to over AED 1.5 million locked, which cannot be used operationally, representing opportunity cost.
    
• Compliance and Legal Consultancy:
  
  • Firms typically allocate between AED 75,000 to AED 250,000 for developing AML/KYC policies, compliance manuals, and securing expert legal advice.
    
• Technology and Cybersecurity Infrastructure:
  
  • Setting up compliant tech infrastructure and conducting third-party audits range from AED 75,000 to AED 300,000, depending on complexity and license type.
    
• Office and Staffing Requirements:
  
  • Physical office space (virtual offices are not allowed) can cost AED 50,000 to AED 150,000 annually.
    
  • Employing at least two responsible individuals (UAE residents or passport holders) adds costs of AED 120,000+ per year.
    
• Other Costs:
  
  • Business setup fees are around AED 45,000 to AED 75,000 for company formation in mainland/free zones.
    
  • Banking and operational setup may add AED 25,000 to AED 50,000.
    

Post-License Compliance

Licensed firms submit regular reports, undergo annual audits, update the Anti-Money Laundering (AML)/KYC, conduct security assessments, and ensure operational transparency. VARA enforces via inspections.​

Common Mistakes and How to Avoid Them?

Avoid unclear business models by detailing activities upfront; build strong compliance frameworks early with expert input. Prepare cybersecurity rigorously to pass reviews, conduct pre-audits. Incomplete apps delay approvals.​

FAQs

Do freelancers need VARA approval?
No, unless handling customer funds or virtual assets commercially.​

Is VARA mandatory for all Dubai crypto activities?
Yes, for mainland/free zones outside DIFC.​

Are NFTs included?
Yes, as virtual assets if traded or custodied.​

Can you operate outside Dubai without VARA?
VARA covers Dubai-scope activities; other emirates have separate rules.​

Conclusion

Getting a VARA license is one of the most important steps for any crypto or Web3 business that wants to operate legally and confidently in Dubai’s regulated digital asset landscape. While the process can feel technical, from compliance documentation to cybersecurity checks, meeting these requirements opens the door to a secure, trusted, and fast-growing ecosystem. This is exactly where Arnifi adds value. With deep expertise in regulatory approvals, business setup, and VARA compliance, Arnifi guides you through every stage of the licensing process, ensuring accuracy, speed, and complete peace of mind. By partnering with Arnifi, your crypto venture can focus on innovation while we handle the regulatory complexities, helping you build a compliant and future-ready presence in Dubai’s Web3 economy.