Secure Your Crypto Exchange License in UAE with Consulting24
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Establishing Your Business;
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Help with Securing a Cryptocurrency License;
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Support for AML/CTF Compliance Documentation;
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Step-by-Step Assistance for Crypto License Application;
Our Fees: 20,000€
Keep in mind, these fees are separate from government charges, which usually range from 30,000-80,000€.
Crypto Exchange Licenses UAE
The Virtual Assets Regulatory Authority (VARA), available at www.vara.ae, serves as the regulatory entity managing the birth, use, and trade of digital assets either originating in or distributed throughout the Emirate of Dubai.
License Options
Advisory Services
Means offering, providing or agreeing to provide a personal recommendation* to a client, either upon its request, or on the initiative of the Entity providing the recommendation, in respect of one or more actions or transactions relating to any Virtual Assets.
*When providing a personal recommendation, the Entity providing the recommendation shall consider the following factors at a minimum in respect of each client—
[a]knowledge and experience in investing in Virtual Assets;
[b]investment objectives including, but not limited to, risk tolerance, time horizon and venues through which they can acquire Virtual Assets; and
[c]financial circumstances including, but not limited to, their ability to bear sudden and significant losses or proportion of their net worth invested in Virtual Assets.
Broker-Dealer Services
Means any of the following—
[a]arranging orders for the purchase and sale of Virtual Assets between two Entities;
[b]soliciting or accepting orders for Virtual Assets and accepting fiat currency, or other Virtual Assets, for such orders;
[c]facilitating the matching of transactions in Virtual Assets between buyers and sellers;
[d]entering into Virtual Asset transactions as a dealer on behalf of the Entity for its own account;
[e]making a market in Virtual Assets using client assets; or
[f]providing placement, distribution or other issuance* related services to clients issuing Virtual Assets.
*As per Regulation II, any Entity in the Emirate that issues a Virtual Asset in the course of a business, must comply with the VA Issuance Rulebook, as may be amended from time to time.
Custody Services
Means safekeeping Virtual Assets for or on behalf of another Entity and acting only on verified instructions from or on behalf of such Entity*.
*All VASPs shall be subject to Rules regarding the storage and custody of clients’ Virtual Assets. Only VASPs which segregate each client’s assets in separate VA Wallets will qualify for a Custody Services Licence.
Exchange Services
Means any of the following—
[a]conducting an exchange, trade or conversion between Virtual Assets and fiat currency;
[b]conducting an exchange, trade or conversion between one or more Virtual Assets;
[c]matching orders between buyers and sellers and conducting an exchange, trade or conversion between [i] Virtual Assets and fiat currency or [ii] one or more Virtual Assets; or
[d]maintaining an order book in furtherance of [a], [b] or [c] above.
Lending and Borrowing Services
Means carrying out a contract under which a Virtual Asset shall be transferred or lent from one or more parties [the Lender[s]] to one or more other parties [the Borrower[s]] where the Borrower[s] shall commit to return the same, at the request of the Lender[s], at any time either during or at the end of the period agreed upon.
VA Management and Investment Services
Means acting on behalf of an Entity as an agent, or fiduciary, or otherwise taking responsibility for the management, administration or disposition of that Entity’s Virtual Assets.
Examples may include, but shall not be limited to—
[a]investment management services or otherwise managing Virtual Assets; and
[b]taking responsibility for the staking of Virtual Assets for the purposes of earning fees or other amounts paid to validators and/or node operators of a proof-of-stake Distributed Ledger Technology.
VA Transfer and Settlement Services
Means the transmission or transfer, and/or settlement of Virtual Assets from one Entity to another Entity or from one Entity to another VA Wallet, address or location.
Official Fees of Obtaining Crypto Exchange License UAE
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 27,250$ | 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 27,250$ | 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 27,250$ | 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 27,250$ | 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 27,250$ | 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. |
A Quick Guide to Crypto Exchange Licenses in UAE
For individuals aiming to secure a cryptocurrency license in Dubai (excluding DIFC), two main routes are available: applying through mainland corporations or leveraging the benefits provided by the Dubai Free Zone Authority (FZA).
The path to a cryptocurrency license in Dubai initiates with the submission of the Initial Approval Application. This crucial step necessitates the provision of all pertinent documents and details, in line with regulatory instructions. Following submission, the application undergoes an assessment to verify regulatory compliance and to evaluate the applicant's qualifications against set benchmarks. Gaining Initial Approval is an essential accomplishment that facilitates subsequent phases of the licensing procedure. Our squad of seasoned professionals is ready to assist you during this stage, guaranteeing a smooth and successful application process.
First Step - Filing the Initial Approval Application
Step 1: Initiate the Company Incorporation Process
Embark on the journey by furnishing all requisite documents and particulars for your company's incorporation. This stage lays the legal foundation and prepares for the next steps.
Step 2: Fill out the Initial Disclosure Questionnaire
With incorporation underway, your next task is to fill out and submit the Initial Disclosure Questionnaire accurately, compiling essential business information for regulatory compliance.
Step 3: Prepare a Comprehensive Business Plan
Craft a comprehensive business plan outlining your company's goals, financial forecasts, and methods of cryptocurrency integration. This strengthens the trustworthiness of your application.
Step 4: Provide Ownership and Management Information
Disclose exhaustive and transparent information about your company's beneficial owners and senior management. This level of clarity is pivotal for the regulatory scrutiny.
Step 5: Make the Initial Payment (50% of Total Fees)
To move forward with the incorporation, the payment of initial fees is required. These fees cover administrative costs and indicate your commitment to the process.
Upon successful completion of these steps, your company is primed to obtain necessary approvals, establish operations, and fulfill legal obligations. However, offering services during this stage is not permissible.
Second Step - Filing the Full Market Product (FMP) License Application
Step 1: Post Initial Approval, compile and submit the required documentation as per VARA's stipulations for the Full Market Product (FMP) license. Remain prepared for possible further document requisitions or meetings from VARA.
Step 2: Responsibly deal with all feedback from VARA, fulfill any additional conditions, and proceed with the payment of the remaining license application fees as well as the first-year supervision costs.
Step 3: Upon meeting all financial commitments and operational prerequisites, your company will receive the FMP license, enabling the commencement of Virtual Asset operations.
Bear in mind: VARA may stipulate certain operational conditions in tandem with the issuance of the FMP license.
Dubai vs. Lithuania vs. Estonia: Crypto License Comparison
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
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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 |
Navigating the complex waters of the EU's crypto regulation can be challenging. At Consulting24, we've mastered this domain and are ready to guide you through the process. From understanding the detailed rules in Estonia and Lithuania to leveraging the zero-tax environment of Dubai, our comprehensive consulting services have got you covered. Learn more about our expertise in EU crypto regulation and how we can assist you in making informed decisions.
Our Team
Lena Elvbakken
Co-Founder
"Capitalise on our tailor-made solutions, designed for businesses exploring the digital currency landscape. We simplify the process of procuring a crypto license in Dubai, steering you through regulatory challenges to expand your crypto business."
Mardo Soo
Founder
"As the brain behind Consulting24, my mission is to make the labyrinthine process of obtaining a Dubai crypto license less daunting for entrepreneurs. We prioritise straightforwardness, affordability, and an effortless entry into the market. Count on us for a budget-friendly strategy towards securing your Dubai crypto license."