Clients
The Role of VARA in Granting Crypto Exchange License in the UAE
The Virtual Assets Regulatory Authority (VARA) plays a pivotal role in the UAE, particularly in Dubai, in overseeing and regulating the crypto exchange market. As the dedicated regulatory body, VARA is responsible for granting crypto exchange licenses in the UAE, ensuring that all operations align with the country’s legal and financial standards. This process involves a thorough evaluation of applications, focusing on the applicant's ability to comply with stringent anti-money laundering (AML) policies, cybersecurity measures, and operational integrity. Check the comprehensive rulebook for crypto exchange license in Dubai provided by VARA here.
Dubai Crypto Exchange License in 2024: Permitted Activities
Advisory Services
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Crypto Market Analysis Service
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Investment Strategy Consulting
Broker-Dealer Services
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Digital Asset Trading Platform
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Cryptocurrency Brokerage Service
Custody Services
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Digital Asset Cold Storage
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Crypto Asset Auditing Service
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Asset Insurance Coverage
Exchange Services
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Crypto Exchange Platform Operation
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Liquidity Management Service
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Transaction Security Solutions
Lending and Borrowing Services
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Crypto-Backed Loan Service
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Margin Trading Facility
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Loan-to-Value Monitoring System
VA Management and Investment Services
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Virtual Asset Fund Management
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Portfolio Performance Monitoring
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Investment Compliance Service
VA Transfer and Settlement Services
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Virtual Asset Transfer Processing
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Global Crypto Remittance Service
Dubai Crypto Exchange License Government Fees
VA Activity | Licence Application Fee | Licence Extension Fee | Annual Supervision Fee | Share Capital |
|---|---|---|---|---|
VA Transfer and Settlement Services | AED 40,000 10,900$ | AED 20,000 5,450$ | AED 80,000 21,800$ | The higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads. |
Advisory Services | AED 40,000 10,900$ | AED 20,000 5,450$ | AED 80,000 21,800$ | AED 100,000. |
Broker-Dealer Services | AED 100,000 27,250$ | AED 50,000 13,125$ | AED 200,000 54,500$ | Broker-Dealer Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 400,000; or [ii] 15% of fixed annual overheads. In all other instances, the higher of [i] AED 600,000; or [ii] 25% of fixed annual overheads. |
Custody Services | AED 100,000 27,250$ | AED 50,000 13,125$ | AED 200,000 54,500$ | The higher of [i] AED 600,000; or [ii] 25% of fixed annual overheads. |
Exchange Services | AED 100,000 27,250$ | AED 50,000 13,125$ | AED 200,000 54,500$ | Exchange Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 800,000; or [ii] 15% of fixed annual overheads. In all other instances, the higher of [i] AED 1,500,000; or [ii] 25% of fixed annual overheads. |
Lending and Borrowing Services | AED 100,000 27,250$ | AED 50,000 13,125$ | AED 200,000 54,500$ | The higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads. |
VA Management and Investment Services | AED 100,000 27,250$ | AED 50,000 13,125$ | AED 200,000 54,500$ | VA Management and Investment Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 280,000; or [ii] 15% of fixed annual overheads. In all other instances, the higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads. |
Crypto Exchange License Dubai: Requirement
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Business Registration: Official registration of the business entity in Dubai.
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AML/CFT Policies: Implementation of Anti-Money Laundering and Counter-Financing of Terrorism policies.
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Operational Framework: Detailed operational plan including technology, security, and risk management systems.
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Capital Requirements: Meeting the minimum capital requirements set by VARA.
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Management Credentials: Proof of the management team's expertise and experience in crypto and financial services.
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Compliance Officer: Appointment of a dedicated compliance officer with relevant qualifications.
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Security Protocols: Robust cybersecurity measures to protect against fraud and hacking.
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Audit and Reporting: Regular financial auditing and reporting procedures.
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KYC Procedures: Rigorous Know Your Customer procedures to verify client identities.
Crypto Exchange License Dubai: Registration Process
1 - Initial Approval Application
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Step 1: Company Registration Initiation Begin by submitting the required documents and information for your company's registration, establishing the legal foundation for your business.
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Step 2: Complete Initial Disclosure Questionnaire After starting registration, fill out and submit the Initial Disclosure Questionnaire to provide vital details about your business for regulatory compliance.
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Step 3: Develop a Comprehensive Business Plan Prepare an in-depth business plan outlining your company's goals, financial forecasts, and cryptocurrency integration strategy, enhancing your application's credibility.
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Step 4: Provide Ownership and Management Information Submit detailed information about your company's beneficial owners and senior management, crucial for regulatory review and ensuring transparency.
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Step 5: Remit Initial Fees Pay the initial 50% of the registration fees, covering administrative costs and demonstrating your commitment to the process.
After these steps, your company will advance towards securing approvals, finalizing its operational framework, and meeting legal requirements. Remember, providing services is not allowed during this phase.
2 - Full Market Product (FMP) License Application
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Step 1: Documentation Submission Post-Initial Approval After initial approval, prepare and submit necessary documents according to VARA's guidelines as part of the FMP license application. This may include additional reviews by VARA, such as meetings or further document requests.
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Step 2: Addressing Feedback and Completing Payments Respond to any feedback from VARA and fulfill any additional requirements. Then, pay the remaining license application fees and the first year's supervision fees.
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Step 3: Finalizing License Acquisition Once financial commitments are fulfilled and operational conditions are met, the company receives the FMP license, enabling them to start Virtual Asset operations.
Remember, the FMP license may come with specific operational conditions set by VARA.
Dubai Crypto Exchange License Cost and Comparison with Lithuania & Estonia
Feature | Dubai | Lithuania | Estonia |
|---|---|---|---|
Cost | 20 000€ | 20 000€ | 25 000€ |
License Type & Government fee | 1. 9,700€ - Advisory Services & VA Transfer and Settlement Services | 1. Cryptocurrency exchange license
2. Crypto wallet and custodian services license
| 1. Cryptocurrency exchange license
2. Crypto wallet and custodian services license
|
2. 24,250€ - Broker-Dealer, Custody, Exchange, Lending and Borrowing & VA Management and Investment Services | No additional fee | 10 000€ | |
Audit | May be required by VARA | Not required | Monthly and yearly are needed |
Office | Required | Can be virtual | Required |
AML (Anti-Money Laundry Officer) | Can be any nationality | Local needed | Local needed |
AML monthly salary | 5000€ | Starting from 1200€ | Starting from 2000€ |
Local director | Can be any nationality | Can be any nationality | Can be of any nationality, but have to live in Estonia |
Share capital terms | Immidiately | 25% now, 75% within a year.
| Immediately |
Required share capital | 24,250€ (Advisory Services) - 194,000€ (Exchange Services)
| 125 000€ | 100 000€ - Crypto wallet and custodian services license.
250000€ - Cryptocurrency exchange license |
Our Team
Lena Elvbakken
Co-Founder
We offer specialized services to support businesses venturing into digital currencies, providing comprehensive assistance in acquiring a crypto exchange license UAE. Our expertise in the regulatory landscape ensures a smooth licensing process, helping your cryptocurrency venture thrive in Dubai's dynamic market.
Mardo Soo
Founder
At Consulting24, we guide entrepreneurs in obtaining budget-friendly Dubai crypto exchange licenses, simplifying the complex process and minimizing costs for smooth market entry.
