Dubai Crypto Trading License
The Virtual Assets Regulatory Authority (VARA), found at www.vara.ae, is the overseeing institution responsible for the regulation of the creation, application, and transaction of digital assets either sourced from or distributed within 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
Dubai Crypto Trading Licenses: A Swift Overview
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For those interested in obtaining a cryptocurrency license in Dubai (outside DIFC), there are mainly two viable routes: submission through mainland companies or making use of the advantages offered by the Dubai Free Zone Authority (FZA).
The pursuit of a cryptocurrency license in Dubai begins with the lodgement of the Initial Approval Application. This crucial action involves providing all the mandatory documents and details as dictated by the supervisory authorities. Post submission, the application undergoes scrutiny to verify regulatory alignment and assess qualifications based on existing rules. Securing Initial Approval is a meaningful progress point, leading the way to the subsequent phases of the license registration journey. Our cadre of experienced specialists will stand with you throughout this stage, assuring a seamless and effective application procedure.
Step 1 - Submitting the Initial Approval Application
Step 1: Initiate the Company Registration Process
Begin the process by providing the necessary documents and details for company registration. This step forms the legal basis and paves the way for subsequent steps.
Step 2: Fill Out the Initial Disclosure Questionnaire
Once you've started the registration, your next task is to fill out the Initial Disclosure Questionnaire, providing essential business data that ensures regulatory compliance.
Step 3: Develop a Detailed Business Plan
Craft a comprehensive business plan that outlines your company's goals, financial forecast, and strategies for incorporating cryptocurrency into your operations. This bolsters the credibility of your application.
Step 4: Disclose Ownership and Management Details
Provide thorough and accurate information about the beneficial owners and senior management of your business. This level of transparency is important for the regulatory review.
Step 5: Pay the Initial Fees (50% of the Total)
In order to continue with the registration, you need to pay the initial fees. These fees cover the administrative costs and demonstrate your commitment to the process.
Upon successfully completing these steps, your company can proceed towards gaining the necessary approvals, establishing operations, and meeting legal obligations. Note that it's prohibited to offer services during this stage.
Step 2 - Submitting the Full Market Product (FMP) License Application
Step 1: Upon Initial Approval, compile and submit the necessary documents for the Full Market Product (FMP) license in accordance with VARA's guidelines. Anticipate possible additional document requests or meetings initiated by VARA.
Step 2: Responsively address all feedback from VARA, meet any supplemental requirements, and then proceed with the payment of the remaining license application fees and the first year's supervision fees.
Step 3: After all the financial commitments and operational prerequisites are met, your company will be awarded the FMP license, paving the way for the initiation of Virtual Asset operations.
Please Note: VARA may attach certain operational conditions to the issuance of the FMP license.
Government Fees for the Licenses
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. |
Lithuania presents a cost-effective and efficient alternative in navigating the government regulation of cryptocurrency. It ensures an uncomplicated pathway to securing a crypto license, and the process for opening a bank account is remarkably straightforward. With the total setup timeframe ranging from just 1 to 2 months, Lithuania emerges as a practical choice. For more comprehensive information, feel free to explore the resources provided by Consulting24.
If you're keen to study the intricate regulations and opportunities within the European crypto sphere, explore our comprehensive guide to stay ahead of the curve. Diving into the "Crypto EU" landscape can be a game-changer for crypto enthusiasts and businesses alike.
Dubai, Lithuania, Estonia: A Comparative Exploration of 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
"Benefit from our custom-built services, designed especially for businesses entering the digital currency arena. We uncomplicate the procedure of attaining a cryptocurrency license in Dubai, leveraging our extensive regulatory understanding for a hassle-free licensing experience. Rely on our wisdom to steer you through Dubai's complex regulatory maze, fostering the growth of your cryptocurrency initiatives."
Mardo Soo
Founder
"As the founder of Consulting24, my chief goal is to help entrepreneurs traverse the intricate maze of Dubai's crypto licensing process effortlessly. We clarify this complex undertaking, while judiciously maintaining cost efficiency. Our pledge is to facilitate your seamless integration into the bustling crypto market of Dubai, while keeping licensing costs within a manageable range. Count on our experience for an economically viable journey towards obtaining your Dubai crypto license."