The Ultimate Guide to Crypto License in UAE by Consulting24
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Business Incorporation;
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Support for Cryptocurrency License Acquisition;
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Assistance with AML/CTF Documentation Compliance;
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Guidance through Crypto Licensing Application;
Service Charge: 20,000€
Take into account, this fee excludes government charges which typically range between 30,000-80,000€.
Crypto License UAE
The Virtual Assets Regulatory Authority (VARA), accessible at www.vara.ae, serves as the supervisory body responsible for controlling the inception, usage, and exchange of digital assets that either originate in or are disseminated throughout the Emirate of Dubai.
Available Licenses:
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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
Our Clients
Crypto Licenses UAE: A Swift Overview
For those aspiring to secure a cryptocurrency license in Dubai (outside of DIFC), two primary options exist: applying through mainland companies or leveraging the benefits of the Dubai Free Zone Authority (FZA).
The path towards acquiring a cryptocurrency license in Dubai commences with the Initial Approval Application's submission. This imperative stage necessitates the provision of all obligatory documents and information as per regulatory stipulations. Once submitted, the application is scrutinized to affirm regulatory conformity and assess the applicant's eligibility as per prevailing norms. Obtaining Initial Approval is a significant milestone that clears the way for the next stages of the licensing journey. Our team of seasoned professionals will accompany you throughout this process, guaranteeing a smooth and successful application process.
Phase 1 - Submitting the Initial Approval Application
Step 1: Begin Company Registration
Embark on the process by furnishing the required documents and details for registering your company. This sets the legal groundwork and preps for the ensuing steps.
Step 2: Complete the Initial Disclosure Questionnaire
Once registration has been initiated, your subsequent task is to accurately complete and submit the Initial Disclosure Questionnaire, collecting vital business information for compliance with regulatory standards.
Step 3: Construct an In-Depth Business Plan
Develop a thorough business plan that details your company's objectives, financial projections, and integration strategies for cryptocurrency. This adds weight to your application's credibility.
Step 4: Declare Details about Ownership and Management
Offer precise, comprehensive information about the beneficial owners and top management of your enterprise. This level of transparency is vital for the regulatory examination.
Step 5: Remit the Initial Fees (50% of Total)
To proceed with the registration, the initial fees must be remitted. These costs cover the administrative overheads and exhibit your commitment to the process.
After these stages have been successfully fulfilled, your company is geared up to secure the required approvals, finalize operations, and comply with legal requirements. Bear in mind that providing services during this time is not allowed.
Step 2 - Submitting the Full Market Product (FMP) License Application
Step 1: Post-Initial Approval, assemble and submit the requisite documentation conforming to VARA's criteria for the Full Market Product (FMP) license. Stay prepared for potential further scrutiny by VARA, which may entail additional document requests or meetings.
Step 2: Address all feedback from VARA diligently, comply with any extra stipulations, and then move forward with the payment of outstanding license application fees and the initial year's supervision charges.
Step 3: Once you've fulfilled all financial and operational preconditions, your company will be granted the FMP license, allowing you to commence Virtual Asset operations.
Do keep in mind: VARA may specify certain operational preconditions tied to the FMP license.
Official Fees Associated with Licensing
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. |
Understanding the laws on cryptocurrency is essential for any venture planning to operate in this sphere. To get comprehensive information and guidance about this crucial aspect, feel free to explore the resources compiled by Consulting24, one of the leading firms in the crypto regulation domain.
Lithuania presents a compelling, cost-effective alternative. It provides a direct pathway to crypto licensing, and opening a bank account is notably hassle-free. With a setup duration spanning only 1-2 months, Lithuania serves as an efficient and budget-friendly option.
Dubai vs. Lithuania vs. Estonia: A Deep Dive into Cryptocurrency Licensing
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
"Make the most of our tailor-made services, crafted particularly for businesses venturing into the sphere of digital currencies. We simplify the process of securing a cryptocurrency license in Dubai, drawing on our in-depth knowledge of regulations for a seamless licensing journey. Trust our acumen to guide you through the intricate regulatory network of Dubai, bolstering the expansion of your cryptocurrency enterprise."
Mardo Soo
Founder
"As the initiator of Consulting24, my principal mission is to facilitate entrepreneurs in smoothly navigating the complex labyrinth of Dubai's crypto licensing framework. We make this multifaceted process straightforward while prudently controlling expenses. Our commitment is to ensure your smooth transition into Dubai's thriving crypto market, while keeping the licensing costs affordable. Trust in our know-how for a budget-friendly pathway to acquiring your Dubai crypto license."