Your Guide to Crypto Trading License in UAE
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Setting Up Your Company;
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Assistance in Acquiring a Cryptocurrency License;
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Support in Crafting AML/CTF Compliance Documents;
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Guided Help for Crypto License Application Process;
Our Charges: 20,000€
Please note, these charges are exclusive of governmental fees, which are typically between 30,000-80,000€.
Our Clients
Crypto Trading License UAE
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.
The Virtual Assets Regulatory Authority (VARA), accessible at www.vara.ae, is the regulatory body that supervises the inception, utilization, and exchange of digital assets, whether they are created within or circulated across the Emirate of Dubai.
Official Fees of Obtaining Crypto Trading 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. |
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A Simple Guide to Crypto Trading Licenses in UAE
For those aspiring to obtain a cryptocurrency license in Dubai (outside DIFC), there are primarily two options: filing applications through mainland corporations or harnessing the perks offered by the Dubai Free Zone Authority (FZA).
The journey towards securing a cryptocurrency license in Dubai commences with the submission of the Initial Approval Application. This key step involves providing all necessary documentation and information, following the regulatory directives. Post-submission, the application is examined to ensure it meets the regulatory standards and the applicant's qualifications are assessed against the established criteria. Achieving Initial Approval is a significant stride that paves the way for future stages in the licensing process. Our team of experienced specialists is ready to guide you during this phase, ensuring a seamless and fruitful application journey.
Initial Phase - Submitting the Initial Approval Application
Step 1: Kick-start the Company Establishment Process
Begin your journey by supplying all the necessary documents and details for your company's establishment. This is the first step in laying the legal groundwork and setting the stage for subsequent steps.
Step 2: Complete the Initial Disclosure Questionnaire
As the establishment process is in progress, your next assignment is to accurately fill out and submit the Initial Disclosure Questionnaire, accumulating key business information required for regulatory compliance.
Step 3: Craft a Detailed Business Plan
Construct an in-depth business plan which outlines your company's aims, financial outlooks, and strategies for incorporating cryptocurrency. This effort amplifies the credibility of your application.
Step 4: Disclose Ownership and Management Details
Provide detailed and clear information concerning the beneficial owners and executive management of your company. This level of transparency is critical for the regulatory review process.
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Step 5: Make the Initial Payment (50% of Total Fees)
To continue with the establishment process, it's essential to pay the initial fees. These charges are meant to cover administrative expenses and exhibit your dedication to the process.
Once these steps are effectively completed, your company is prepared to secure the necessary approvals, initiate operations, and comply with legal responsibilities. However, it's important to remember that offering services during this phase is not permitted.
Second Step - Full Market Product (FMP) License Application Submission
Step 1: Following Initial Approval, collect and submit the requisite documents according to VARA's instructions for the Full Market Product (FMP) license. Be ready for potential additional documentation requests or meetings from VARA.
Step 2: Address all feedback from VARA in a responsible manner, meet any extra requirements, and carry on with the payment of the remaining license application fees along with the first-year supervision expenses.
Step 3: Once all monetary obligations and operational conditions are met, your company will be awarded the FMP license, paving the way for Virtual Asset operations to begin.
Take note: Alongside the issuance of the FMP license, VARA may impose specific operational conditions.
Comparing Crypto License Acquisition: 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
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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
"We make the acquisition of a Dubai crypto license straightforward, leading you through regulatory challenges to boost your crypto enterprise."
Mardo Soo
Founder
"As the founder at Consulting24, my ambition is to streamline the complicated procedure of earning a Dubai crypto license for business pioneers. We put emphasis on simplicity, cost-saving strategies, and a frictionless entry into the market. Rely on us for a budget-friendly route towards your Dubai crypto license acquisition."