Available Activities 2024 for Dubai Crypto License
Advisory Services
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Cryptocurrency investment advice.
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Portfolio management guidance.
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Regulatory compliance consulting.
Broker-Dealer Services
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Buying and selling cryptocurrencies.
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Trade order execution.
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Investment advice and brokerage.
Custody Services
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Secure storage of digital assets.
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Account management for crypto holdings.
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Transaction support services.
Exchange Services
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Cryptocurrency trading platform operations.
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Market liquidity provision.
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Exchange security and user protection.
Lending and Borrowing Services
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Crypto-backed loans and borrowing.
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Interest-bearing crypto accounts.
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Collateralized lending and margin trading.
VA Management and Investment Services
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Managing crypto investment funds.
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Virtual asset portfolio management.
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Crypto investment strategies.
VA Transfer and Settlement Services
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Virtual asset transfer and settlement.
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Crypto payment and remittance solutions.
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Secure transaction processing.
Our Clients
Crypto License in Dubai - How does it Work?
In Dubai, the crypto industry operates within a regulatory framework overseen by the Virtual Assets Regulatory Authority (VARA) www.vara.ae. Established to supervise and regulate the distribution, utilization, and trade of virtual assets, VARA plays a crucial role in shaping the crypto landscape in the Emirate of Dubai.
The Virtual Assets Regulatory Authority (VARA) plays a crucial role in regulating Dubai's cryptocurrency market. Key responsibilities include:
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Regulatory Oversight: VARA ensures businesses with a Dubai crypto license comply with legal and financial regulations, maintaining market integrity.
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Licensing: To operate in Dubai's crypto sector, companies must obtain a Dubai crypto license from VARA, covering activities like exchanges and advisory services.
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Consumer Protection: VARA focuses on safeguarding investors in the crypto market by enforcing transparency and security standards.
VARA's involvement is essential in maintaining a regulated and secure environment for Dubai's growing cryptocurrency industry.
Obtaining a Crypto License in Dubai
To operate legally in Dubai, businesses must navigate the process of obtaining a crypto license through VARA. This involves:
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Application Submission: Businesses must submit a comprehensive application, detailing their operational plans, security measures, and compliance strategies.
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Compliance with Regulations: Applicants must demonstrate adherence to anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations, among others.
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Financial and Operational Audits: VARA may require audits to assess the financial health and operational readiness of the applying business.
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Continuous Monitoring: Once a license is granted, VARA continues to monitor the activities of the licensee to ensure ongoing compliance with its regulations and standards.
Dubai Crypto License Cost - A Comprehensive Government Fees Overview
VA Activity | Licence Application Fee [ per Activity] | Licence Extension Fee | Annual Supervision Fee | Share Capital |
|---|---|---|---|---|
VA Transfer and Settlement Services | AED 40,000 10,900$ | AED 20,000 5,450$ | AED 40,000 10,900$ | 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 40,000 10,900$ | AED 100,000. |
Broker-Dealer Services | AED 100,000 27,250$ | AED 50,000 13,125$ | AED 100,000 27,250$ | 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 100,000 27,250$ | 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 100,000 27,250$ | 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 100,000 27,250$ | 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 100,000 27,250$ | 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. |
Registration Process for Crypto Licence Dubai
Application submissions can be made through mainland firms, or any Dubai Free Zone Authority (FZA) in the emirate of Dubai (excluding DIFC).
Step 1 - Initial Approval Application
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Company Registration
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Submit an Initial Disclosure Questionnaire
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Business Plan Preparation: Creation a detailed business plan outlining your intended operations, financial projections, and how you plan to incorporate crypto into your business model.
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Include details of the firm’s beneficial owners and senior management.
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Pay the initial fees [normally 50% of the license application fee] required to commence the application review.
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Receive an Initial Approval to finalize onboarding the firm’s legal incorporation and to complete operational set-up including office space rental, employee on-boarding, and so forth. NOTE: At this point, the firm is not permitted to carry on Virtual Asset activities.
Step 2 - Full Market Product (FMP) Licence Application
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Prepare and submit documentation according to the guidance provided by VARA upon receipt of the Initial Approval.
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Receive feedback directly from VARA on the submission which may include meetings, interviews, and submission of further documentation.
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Pay the remaining portion of the application license fees and the first year’s supervision fees.
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Receive an FMP Licence, which may be subject to operational conditions.
Crypto License in Dubai: Cost!
Here's a summary of the costs associated with obtaining a crypto license in Dubai, presented in a tabular format:
Cost Item | Amount (USD) | Frequency |
|---|---|---|
Registration Fee | 5,000 | One-Time |
Articles of Association (AOA) | 750 | One-Time |
License Fee | 10,000 | Annual |
Establishment Card | 750 | Annual |
Application Fee | 5,000 | One-Time |
When obtaining a crypto license in Dubai, office space is a key consideration. Here's a summary of the options and their costs:
Office Space Type | Cost (AED/USD) | Visas Offered | Additional Info |
|---|---|---|---|
Flexi Desk | AED 16,800 (USD 4,575) | Up to 3 | Plus AED 1,000 deposit and AED 656 fee |
Crypto Centre Co-working Desk | AED 19,000 (USD 5,173) | Up to 3 | |
Serviced Office | From AED 35,000 (USD 9,615) | 4 to 5 | |
Physical Office for Lease | AED 50 - 150 per sq ft | 1 per 9 sq m | (USD 15-40 per sq ft) |
Physical Office for Sale | AED 500 - 1,500 per sq ft | 1 per 9 sq m | (USD 130-400 per sq ft) |
Note: These are estimated office space prices and may vary. Consulting24 offers assistance in setting up the office with a service fee of USD 1000. This fee is separate from the office space costs listed above.
Compare Dubai, Lithuania & Estonia's Crypto License
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 |
Our Team
Lena Elvbakken
Co-founder
"For businesses exploring the digital currency space, we specialize in procuring a Dubai cryptocurrency license. Our guidance helps clients maneuver the complex regulatory framework, facilitating successful acquisition of necessary crypto licenses. Count on our expertise to guide you through Dubai's regulatory landscape for your cryptocurrency ventures."
Mardo Soo
Founder
"As the CEO of Consulting24, my aim is to assist entrepreneurs in establishing their businesses in Dubai and securing cryptocurrency licenses in a cost-effective manner. We simplify the complex procedure of obtaining a Dubai crypto license and help manage your expenses. Our goal is to open up the dynamic Dubai crypto market for you while keeping licensing costs manageable. Trust us to guide you affordably through your crypto licensing journey in Dubai."
