Our Clients
Dubai Cryptocurrency License in 2024: A Guide to Permitted Activities
1. Advisory Services - Cryptocurrency investment advice and portfolio management guidance.
2. Broker-Dealer Services - Buying and selling cryptocurrencies and trade order execution.
3. Custody Services - Secure storage of digital assets and account management for crypto holdings.
4. Exchange Services - Cryptocurrency trading platform operations and market liquidity provision.
5. Lending and Borrowing Services - Crypto-backed loans/borrowing and collateralized lending and margin trading.
6. VA Management and Investment Services - Managing crypto investment funds or virtual asset portfolio management.
7. VA Transfer and Settlement Services - Virtual asset transfer/settlement/crypto payment and remittance solutions.
Cryptocurrency License in the UAE: VARA's Role in Dubai
The cryptocurrency market in Dubai, under the governance of the Virtual Assets Regulatory Authority (VARA) www.vara.ae, operates according to a detailed rulebook. This rulebook ensures that entities with a cryptocurrency license comply with rigorous legal and financial standards, emphasizing transparency and investor protection. Businesses partaking in crypto exchanges and advisory services must align with these guidelines. To understand the full extent of these regulations and the scope of permitted activities, interested parties can check the comprehensive rulebook provided by VARA here. This resource is essential for navigating the regulatory landscape of Dubai's cryptocurrency industry.
Dubai Cryptocurrency 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 13,125$ | 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 13,125$ | 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 13,125$ | 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 13,125$ | 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 13,125$ | 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. |
If you find the Dubai crypto license a bit too pricey, many are turning towards Lithuania for a more budget-friendly and faster alternative. I suggest taking a look at a comparison chart to see how they stack up against each other.
Step-by-Step Guide to Registering for a Cryptocurrency License in Dubai
Step 1 - Initial Approval Application
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Step 1: Initiate Company Registration Begin by submitting required documents to legally establish your company.
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Step 2: Complete Initial Disclosure Questionnaire Fill out this questionnaire to provide key business details for regulatory compliance.
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Step 3: Draft a Comprehensive Business Plan Create a detailed plan outlining your company's goals, financial projections, and cryptocurrency integration.
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Step 4: Submit Ownership and Management Information Provide detailed information about the company's owners and management for transparency.
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Step 5: Remit Initial 50% of Fees Pay the initial half of the registration fees to move forward in the process.
Completing these steps leads to the final phases of securing approvals and legal compliance. Note that offering services during this phase is not permitted.
Step 2 - Applying for a Full Market Product (FMP) License
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Step 1: Post-Initial Approval Documentation Submit necessary documents as guided by VARA for the Full Market Product (FMP) license.
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Step 2: Review Process Undergo VARA's review, which may include meetings or requests for extra documentation.
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Step 3: Address Feedback Respond to VARA's feedback and fulfill additional requirements, if any.
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Step 4: Fee Payment Pay the remaining application license fees and the first year's supervision fees.
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Step 5: License Issuance After settling fees and meeting conditions, receive the FMP license for Virtual Asset operations.
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Step 6: Adhering to Operational Conditions Comply with specific conditions set by VARA for the FMP license.
Comparing Crypto Licensing Costs: 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 |
Consulting24 Team
Lena Elvbakken
Co-Founder
"We specialize in helping businesses acquire cryptocurrency licenses in Dubai, offering expert guidance through the regulatory landscape to ensure a smooth and successful licensing process for your digital currency ventures."
Mardo Soo
Founder
"At Consulting24, our experience is our leverage in efficiently guiding entrepreneurs to obtain Dubai cryptocurrency licenses. We streamline the complex process, ensuring cost-effective entry into Dubai's dynamic crypto market."
