UAE Crypto License: Expert Guidance by Consulting24
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Establishing a Company;
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Help with Securing a Cryptocurrency License;
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Support for AML/CTF Compliance Documentation;
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Step-by-step Guidance for Crypto License Application;
Service Costs: 20,000€
Please be aware, these costs are separate from government fees, which usually range from 30,000-80,000€.
UAE Crypto Licenses
The Virtual Assets Regulatory Authority (VARA), located online at www.vara.ae, acts as the regulatory power overseeing the creation, employment, and trade of digital assets that are either born within or distributed throughout the Emirate of Dubai.
Available License
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.
Official Fees of Obtaining UAE Crypto License
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 serves as an appealing, economical option. It provides an uncomplicated path to crypto license acquisition, and the procedure of establishing a bank account is particularly direct. With a total setup period of merely 1-2 months, Lithuania epitomizes both speed and cost-effectiveness.
If you are interested in launching stablecoin. Discover the dynamics of stablecoin regulation in Estonia, Lithuania, and Dubai with the expert team at Consulting24. We guide you every step of the way.
A Quick Guide to UAE Crypto Licenses
For those aiming to secure a cryptocurrency license in Dubai (beyond DIFC), two main paths are open: lodging applications through mainland corporations or availing the benefits of the Dubai Free Zone Authority (FZA).
The quest for a cryptocurrency license in Dubai starts with the submission of the Initial Approval Application. This pivotal step entails the provision of all necessary documents and particulars as per regulatory directives. Once lodged, the application undergoes a review to ensure it aligns with regulatory standards and to assess applicant qualifications against the established criteria. Securing Initial Approval is a notable achievement that paves the way for future phases in the licensing journey. Our crew of well-versed specialists is ready to assist you throughout this stage, guaranteeing a smooth and successful application process.
Initiating the Process - Submitting the Initial Approval Application
Step 1: Kickstart the Registration Process for Your Company
Begin the journey by submitting all requisite documents and details for company registration. This forms the legal framework and prepares the ground for the steps to follow.
Step 2: Fill out the Initial Disclosure Questionnaire
Once registration is underway, your next task is to accurately complete and submit the Initial Disclosure Questionnaire, collating vital business information needed for regulatory compliance.
Step 3: Formulate a Detailed Business Plan
Create a comprehensive business plan that sets out your company's goals, financial forecasts, and cryptocurrency incorporation strategies. This enhances the trustworthiness of your application.
Step 4: Disclose Ownership and Management Information
Supply thorough, transparent information about the beneficial owners and senior management of your company. This degree of transparency is vital for the regulatory review.
Step 5: Make the Initial Payment (50% of Total Fees)
To advance with the registration, payment of the initial fees is mandatory. These fees cover administrative costs and demonstrate your commitment to the process.
Once these steps are completed successfully, your company is prepared to secure the necessary approvals, establish operations, and fulfill legal obligations. Bear in mind that offering services during this stage is not permitted.
Step Two - Submission of the Full Market Product (FMP) License Application
Step 1: Once Initial Approval has been obtained, compile and submit the required documentation as per VARA's guidelines for the Full Market Product (FMP) license. Stay ready for possible further document requisitions or meetings from VARA.
Step 2: Responsibly deal with all feedback from VARA, fulfill any additional conditions, and proceed with the payment of the remaining license application fees as well as the first-year supervision costs.
Step 3: Upon meeting all financial commitments and operational prerequisites, your company will receive the FMP license, enabling the commencement of Virtual Asset operations.
Please be aware: VARA may stipulate certain operational conditions in tandem with the issuance of the FMP license.
Our Clients
Compare Dubai, Lithuania & Estonia Crypto License
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
"Take advantage of our custom solutions, tailored specifically for companies delving into the realm of digital currencies. We simplify and streamline the process of securing a Dubai cryptocurrency license, navigating you through the regulatory intricacies to help expand your crypto enterprise."
Mardo Soo
Founder
"As the founder of Consulting24, my goal is to demystify the intricate procedure of acquiring a Dubai crypto license for business innovators. We prioritize straightforwardness, cost-efficiency, and a seamless introduction into the market. Rely on us for a cost-conscious strategy towards your Dubai crypto license procurement."