Our Clients
Crypto License in Dubai
VARA (Virtual Assets Regulatory Authority), reachable at www.vara.ae, acts as the regulatory agency in charge of managing and controlling the release, use, and trade of digital assets that are either rooted in or distributed throughout the Emirate of Dubai.
License available:
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Advisory Services
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Broker-Dealer Services
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Custody Services
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Exchange Services
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Lending and Borrowing Services
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VA Management and Investment Services
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VA Transfer and Settlement Services
Dubai's Cryptocurrency Licensing: A Brief Overview
When it comes to acquiring a cryptocurrency license in Dubai (outside of DIFC), you're presented with two primary paths: either making an application through mainland companies or capitalizing on the provisions of the Dubai Free Zone Authority (FZA).
The journey to obtaining a cryptocurrency license in Dubai kicks off with the Initial Approval Application. This crucial first step entails the submission of all required documents and details in accordance with regulatory guidelines. After submission, the application is examined to check regulatory compliance and evaluate eligibility based on the established rules. Receiving Initial Approval is a major advancement that sets the stage for further steps in the licensing process. Our dedicated team of experts will be with you every step of the way, ensuring a seamless and successful application process.
Stage 1 - Initial Approval Application
Step 1: Initiate Company Registration Process
Start this stage by submitting necessary documents and information to register your company, thereby setting up the legal framework and preparing for the subsequent steps.
Step 2: Accomplish the Initial Disclosure Questionnaire
Once the registration process has started, the next task is to fill out and submit the Initial Disclosure Questionnaire. This instrument gathers essential business data, thereby ensuring compliance with regulatory standards.
Step 3: Draft a Comprehensive Business Plan
Craft an in-depth business plan that outlines your company's goals, financial estimates, and your plan for incorporating cryptocurrency into your business operations. A well-rounded business plan adds credibility to your application.
Step 4: Reveal Information about Ownership and Management
Provide accurate and detailed information about the beneficial owners and the senior management of your company. This information is necessary for regulatory assessment and promotes transparency during the registration process.
Step 5: Submit the Initial 50% of Fees
To continue with the registration process, it's required to pay the initial fees. These fees cover the administrative costs associated with registration and indicate your commitment to the process.
After these stages are successfully completed, your company can move towards gaining necessary approvals, setting up operations, and meeting legal obligations. Remember, offering services during this phase is not permitted.
Stage 2 - Full Market Product (FMP) License Application
Step 1: Post Initial Approval, ready and submit the required documents conforming to VARA's guidelines for the Full Market Product (FMP) license. VARA may further scrutinize the submission, possibly requiring extra documents or meetings.
Step 2: Respond appropriately to all VARA feedback and meet any extra conditions laid down by VARA, then proceed to pay the outstanding license application and first-year supervision fees.
Step 3: Upon satisfying all financial requirements and prescribed operational conditions, the company receives the FMP license, permitting them to kick-start Virtual Asset operations.
Remember: VARA may tie certain operational conditions to the FMP license.
Dubai 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 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. |
For those deterred by the cost of obtaining a crypto license in Dubai, Lithuania could be a cost-effective alternative. It provides an uncomplicated path to crypto licensing, with a simple bank account opening process. Within a 30-60 day timeframe, Lithuania emerges as an efficient option. Learn more about this and other global crypto regulations here.
Comparing Cryptocurrency Licensing Across Dubai, Lithuania, and 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
"Take advantage of our expertly curated services specifically designed for businesses stepping into the realm of digital currencies. We demystify the complex procedure of obtaining a cryptocurrency license in Dubai, providing deep regulatory insights for a streamlined licensing process. Rely on our expertise to navigate the complexities of Dubai's regulatory environment, propelling the growth of your cryptocurrency endeavors."
Mardo Soo
Founder
"As the founder of Consulting24, my primary aim is to aid entrepreneurs in effortlessly maneuvering through Dubai's crypto licensing landscape. We make this intricate procedure manageable, while judiciously handling costs. Our pledge is to facilitate your seamless integration into Dubai's vibrant crypto market while ensuring licensing expenses are budget-friendly. Depend on our proficiency for an economical journey towards securing your Dubai crypto license."