VARA License in Dubai: Costs, Requirements, and How to Apply in 2025

 We’ve all been hearing a lot of news about Dubai and crypto over the years. Exchanges, asset managers, and many other crypto businesses are moving their operations to the UAE. But to run a legal crypto company and be compliant with Dubai’s crypto regulations, you need the right license. That’s what the VARA license is for.

In this article by Finestel, we’ll break down what the VARA crypto license is, who needs it, how much it costs, and how you can apply for it. We’ll also show real examples of companies already licensed in Dubai and what kind of documents you need to prepare.

What Is the VARA License?

The VARA license is an official approval that you need for your crypto business to operate legally in Dubai. It’s issued by the Virtual Assets Regulatory Authority in Dubai.

It was created in 2022 to keep an eye on everything related to crypto in the city. The idea is to make sure that crypto companies like exchanges, brokers, and asset managers follow proper rules and run safely.

The main purpose is to protect investors, stop fraud, and build trust in the industry. This is something it has certainly achieved so far. In fact, thanks to the VARA compliance license, Dubai is now seen as one of the top places in the world for crypto, Web3, and blockchain businesses.

Types of VARA Licenses

VARA offers several types of licenses depending on the service you provide. Here are the main categories:

Remember, each license has its own rules and requirements. If your company covers more than one service, you may need multiple licenses.

Who Needs a VARA License in Dubai?

If you’re running a crypto business in Dubai, chances are you’ll need a VARA license. VARA covers most types of crypto companies. This includes exchanges, wallet providers, fund managers, lending platforms, and even crypto advisors.

So if you’re offering crypto services to clients, you need to be registered with VARA. That goes for asset managers, pro traders managing other people’s money, and even those working with high-net-worth clients. VARA is also required for Finestel’s asset managers who use our white-label copy trading software to manage investor capital.

How Much Does a VARA License Cost?

The VARA license cost in Dubai depends on what kind of crypto services your business provides. There are three main fees to keep in mind: the application fee, the yearly supervision fee, and an extra fee if you want to apply for more than one type of license.

VARA Licensing Fees

Here’s a breakdown of VARA licensing fees, categorized by different types of activities:

License Extension Fee

Now, imagine you start out as a financial advisor, but you also want to expand to asset management services. Overall, if you want to apply for more than one activity, there’s an extension fee. This is 50% of the lower application fee.

In the case we just mentioned, you first apply for an advisory license (AED 40,000). After you get your initial VARA license, you then add an asset management services license(AED 100,000). The extension fee would be 50% of 40,000, which is AED 20,000.

Other Costs to Expect

It’s a bit naive to think that the costs end here, as much as you’ve heard that Dubai is a tax and regulatory haven for crypto. Other than the VARA license costs already mentioned, there are other expenses like company setup and registration fees, office rent, and more. Make sure you consider all these additional expenditures when doing your feasibility study.

Discretionary and Case-Based Fees

Another important factor that might influence all the numbers we’ve presented is discretion. VARA can add or adjust fees depending on your case. So, if your business model is complex or complaints are raised, you might have to pay extra supervisory fees. These are not listed publicly and are handled case-by-case.

How to Get a VARA License: Step by Step

Now that you know what a VARA license is, and you’re aware of the costs, it’s time to see how you can get one. The step-by-step guide below shows how you can get through the VARA application process in most regular cases:

Step 1: Choose Your Business Activity

First, you should define what your company will do. Will you manage assets? Run an exchange? Or, perhaps, offer custody services? You’ll need a specific license for each one.

And yes, you can also apply for more than one, but that means more paperwork and, well, higher costs. So, thoroughly think about how you present your business.

Step 2: Register a Company in Dubai

Before applying for VARA, you must create a legal entity in Dubai. Most crypto companies choose a mainland setup under the Dubai Department of Economy and Tourism (DET). Some others go through free zones that support virtual asset businesses.

Keep in mind that VARA licenses apply to the entire Emirate, not just specific zones.

For this step, you’ll need a trade name, office address, list of shareholders and directors, and an MOA (Memorandum of Association). 

Step 3: Submit a VARA Initial Disclosure Questionnaire

Now, you can begin the process. The Vara Initial Disclosure Questionnaire is the first document VARA uses to evaluate your business. You must declare a full description of your services and business model. You should also introduce your team members, and especially, your compliance officer.

Financial projections should also be provided, and you must go through AML and KYC processes. This is the step that determines if you’re ready to proceed with your VARA license.

Step 4: Pay the Application Fee

Once VARA gives you the green light, you’ll have to pay the application fee. The VARA application process officially starts after this payment.

Step 5: Submit Detailed Documentation

VARA will then request full documentation. This includes:

• Company structure and legal documents
• Full compliance framework (AML/CFT policies)
• Risk management procedures
• Cybersecurity and data protection systems
• Business plan and financial forecasts
• Details of key personnel and their experience

So, almost every tiny detail about the compliance and security aspects of your business.

Step 6: VARA Review and Interviews

After you submit everything, VARA reviews your case. They may request interviews with founders or the compliance officer. They might also ask you to change some documents if something is missing or unclear.

Step 7: License Issuance and Supervision Fee Payment

If everything checks out, your VARA crypto license. You’ll then need to pay the annual supervision fee before starting operations. Once you pay it, you’re officially licensed to operate your crypto business in Dubai.

Documents & Requirements for VARA Licensing

Now, let’s check out a brief checklist of documents that is sufficient for most general cases of a VARA licensing application. You’ll definitely need to provide these documents to get licensed:

• Company incorporation papers, UBO list, governance structure
• Fit & proper confirmations and source-of-funds evidence
• Business plan and financial projections
• Proof of paid-up and reserved capital
• Insurance certificates
• Succession and wind-down plans
• Cybersecurity, tech setups, and compliance framework
• Detailed policies: AML/CFT, KYC, risk management
• CVs and passports of key personnel

Moreover, your business must follow VARA’s rulebooks. It includes different sections about the company, compliance and risk management, technology and Information security, and market conduct.

There are also special rulebooks related to your specific activities, like custody, advisory, or exchange. So, based on what you’re going to do, you should also follow these rules.

Examples of Businesses That Got a VARA License

Dubai’s publicly available registry shows many high-profile crypto firms that have either received a full VARA license in Dubai or in-principle approval (IPA). Let’s take a look at these familiar names:

• Binance: Got a full license, as it provides different services that include exchange and broker-dealer operations, and even custodial services.
• BitOasis: It’s a MENA-focused exchange and brokerage that is fully licensed by VARA.
• Bybit: Another giant crypto exchange that is listed as a licensed VARA in exchange and custody roles.

• Bitpanda: It received an IPA for broker-dealer services in December 2024.
• HashKey Group: It was approved conditionally in January 2025, preparing to launch in the MENA region.

• Gate Technology FZE (Gate.io): Gate obtained a full operational license in April 2025 under VARA for OTC and exchange services.

This shows that no matter how big or small you are, you’ll definitely need a VARA license to operate in Dubai.

Conclusion

Dubai is setting the standard. If you want to be part of the future of crypto, this is where you need to be. Just make sure you do it the right way. Speaking of which, getting your business a VARA license is a must. 

We covered everything you need to know. What VARA is, why it exists, and how it’s helping Dubai become a global leader in crypto. You saw the different types of licenses and who needs them.

You also got a full breakdown of the costs, steps, and documents involved in getting licensed. And we showed you real companies that are already licensed under VARA. Some big names to prove that this isn’t just theory, it’s something you must plan and prepare for.