{"id":13478,"date":"2025-07-30T08:14:49","date_gmt":"2025-07-30T12:14:49","guid":{"rendered":"https:\/\/finestel.com\/blog\/?p=13478"},"modified":"2025-07-31T10:48:59","modified_gmt":"2025-07-31T14:48:59","slug":"vara-license","status":"publish","type":"post","link":"https:\/\/finestel.com\/blog\/vara-license\/","title":{"rendered":"VARA License in Dubai: Costs, Requirements, and How to Apply in 2025"},"content":{"rendered":"

\u00a0We\u2019ve 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\u2019s what the <\/span>VARA license<\/b> is for.<\/span><\/p>\n

In this article by Finestel<\/a>, we\u2019ll break down what the VARA crypto license is, who needs it, how much it costs, and how you can apply for it. We\u2019ll also show real examples of companies already licensed in Dubai and what kind of documents you need to prepare.<\/span><\/p>\n

What Is the VARA License?<\/b><\/h2>\n

The VARA license is an official approval that you need for your crypto business to operate legally in Dubai. It\u2019s issued by the Virtual Assets Regulatory Authority<\/a> in Dubai.<\/span><\/p>\n

\"What<\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

Types of VARA Licenses<\/b><\/h3>\n

VARA offers several types of licenses depending on the service you provide. Here are the main categories:<\/span><\/p>\n

\n\n\n\n\n\n\n\n\n\n
\n

License Type<\/b><\/p>\n<\/td>\n

\n

Who It’s For<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Exchange License<\/b><\/p>\n<\/td>\n

\n

Businesses that run crypto trading platforms, including CEXs and DEXs<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Broker-Dealer License<\/b><\/p>\n<\/td>\n

\n

Firms that buy\/sell crypto on behalf of clients, including OTC desks<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Custody Services License<\/b><\/p>\n<\/td>\n

\n

Companies that store digital assets for users, such as wallet and vault providers<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Advisory Services License<\/b><\/p>\n<\/td>\n

\n

Consultants or analysts offering crypto investment advice or portfolio guidance<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Lending and Borrowing License<\/b><\/p>\n<\/td>\n

\n

Platforms that let users lend, borrow, or stake digital assets<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Asset Management License<\/b><\/p>\n<\/td>\n

\n

Crypto hedge funds<\/a> or firms managing crypto investment portfolios for clients<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Remember, each license has its own rules and requirements. If your company covers more than one service, you may need multiple licenses.<\/span><\/p>\n

Who Needs a VARA License in Dubai?<\/b><\/h2>\n

If you’re running a crypto business in Dubai, chances are you\u2019ll need a VARA license. <\/span>VARA covers most types of crypto companies. This includes exchanges, wallet providers, fund managers, lending platforms, and even crypto advisors.<\/span><\/p>\n

So if you\u2019re offering crypto services to clients, you need to be registered with VARA. That goes for asset managers, pro traders managing other people\u2019s money, and even those working with high-net-worth clients. <\/span>VARA is also required for Finestel’s asset managers who use our white-label copy trading software<\/a> to manage investor capital.<\/span>\"Who<\/a><\/p>\n

How Much Does a VARA License Cost?<\/b><\/h2>\n

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.<\/span><\/p>\n

VARA Licensing Fees<\/b><\/h3>\n

Here\u2019s a breakdown of VARA licensing fees, categorized by different types of activities:<\/span><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\n

Service Type<\/b><\/p>\n<\/td>\n

\n

Application Fee<\/b><\/p>\n<\/td>\n

\n

Annual Supervision Fee<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Advisory Services<\/span><\/p>\n<\/td>\n

\n

AED 40,000<\/span><\/p>\n<\/td>\n

\n

AED 80,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Broker-Dealer Services<\/span><\/p>\n<\/td>\n

\n

100,000 AED\u00a0<\/span><\/p>\n<\/td>\n

\n

AED 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Custody Services<\/span><\/p>\n<\/td>\n

\n

AED 100,000<\/span><\/p>\n<\/td>\n

\n

AED 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Exchange Services<\/span><\/p>\n<\/td>\n

\n

AED 100,000<\/span><\/p>\n<\/td>\n

\n

AED 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Lending and Borrowing Services<\/span><\/p>\n<\/td>\n

\n

AED 100,000<\/span><\/p>\n<\/td>\n

\n

AED 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Asset Management Services<\/span><\/p>\n<\/td>\n

\n

AED 100,000<\/span><\/p>\n<\/td>\n

\n

AED 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Transfer and Settlement Services<\/span><\/p>\n<\/td>\n

\n

AED 40,000<\/span><\/p>\n<\/td>\n

\n

AED 80,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

License Extension Fee<\/b><\/h3>\n

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\u2019s an extension fee. This is 50% of the <\/span>lower<\/span> application fee.<\/span><\/p>\n

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.<\/span><\/p>\n

\"crypto<\/p>\n

Other Costs to Expect<\/b><\/h3>\n

It\u2019s a bit naive to think that the costs end here, as much as you\u2019ve 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.<\/span><\/p>\n

Discretionary and Case-Based Fees<\/b><\/h3>\n

Another important factor that might influence all the numbers we\u2019ve 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.<\/span><\/p>\n

How to Get a VARA License: Step by Step<\/b><\/h2>\n

Now that you know what a VARA license is, and you\u2019re aware of the costs, it\u2019s 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:<\/span><\/p>\n

\"How<\/p>\n

Step 1: Choose Your Business Activity<\/b><\/h3>\n

First, you should define what your company will do. Will you manage assets? Run an exchange? Or, perhaps, offer custody services? You\u2019ll need a specific license for each one.<\/span><\/p>\n

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.<\/span><\/p>\n

Step 2: Register a Company in Dubai<\/b><\/h3>\n

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.<\/span><\/p>\n

Keep in mind that VARA licenses apply to the entire Emirate, not just specific zones.<\/span><\/p>\n

For this step, you\u2019ll need a trade name, office address, list of shareholders and directors, and an MOA (Memorandum of Association).\u00a0<\/span><\/p>\n

Step 3: Submit a VARA Initial Disclosure Questionnaire<\/b><\/h3>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

Step 4: Pay the Application Fee<\/b><\/h3>\n

Once VARA gives you the green light, you\u2019ll have to pay the application fee. The VARA application process officially starts after this payment.<\/span><\/p>\n

Step 5: Submit Detailed Documentation<\/b><\/h3>\n

VARA will then request full documentation. This includes:<\/span><\/p>\n