You can get a VARA license in Dubai by clearly defining what your virtual asset business actually does, selecting the right jurisdiction and setup structure, preparing the required compliance and risk frameworks, submitting an application to VARA, meeting provisional approval conditions, and completing final licensing before launching operations.
Dubai’s approach to virtual assets has never been casual. Instead of leaving crypto and Web3 activity to evolve unchecked, the emirate chose to build a formal regulatory framework from the ground up. The creation of the Virtual Assets Regulatory Authority (VARA) reflects that intent – to bring structure, accountability, and long-term credibility to a sector that has often struggled with consistency elsewhere.
The result is a system that rewards clarity. Businesses that understand their model, prepare properly, and align with VARA’s expectations can operate legally and scale with confidence. Those that rush, over-generalise their activities, or underestimate compliance usually discover friction later – often at the licensing or banking stage.
Any company offering virtual asset services in Dubai must obtain VARA approval. That includes exchanges, brokers, custody providers, advisory firms, and certain Web3 or blockchain-based platforms where regulated activity is involved. The requirement applies regardless of whether the business focuses on retail users, institutional clients, or operates behind the scenes as a technology-driven service provider.
This guide explains how to get a VARA license in Dubai step by step, using plain language and real-world context. It covers what VARA regulates, who falls within its scope, how the approval process works in practice, and where businesses tend to slow themselves down. The goal is not just to describe the rules, but to help founders understand how licensing decisions made today affect operations, timelines, and scalability later on. With the right preparation and support from Creative Zone, VARA licensing is a structured path forward – not an obstacle.
What is a VARA license in Dubai?
A VARA license is the official approval you need to run a virtual asset business in Dubai under the rules set by the Virtual Assets Regulatory Authority (VARA). Put simply: if your company touches regulated crypto activity in Dubai, VARA licensing is how you’re allowed to operate – legally and credibly.
That matters because Dubai didn’t treat virtual assets as a side project. It built a dedicated regulator, then anchored the market to a framework that’s meant to be clear, enforceable, and taken seriously by banks, partners, and investors. A VARA license is the proof point that your business isn’t just operating in crypto, but structured to operate inside a defined regulatory lane.
VARA’s role is not to police buzzwords. It focuses on activities – what you actually do, how value moves, where client risk sits, and who is responsible when things go wrong. That is why two companies can both call themselves “Web3 platforms,” yet only one of them needs licensing (or needs a very specific type of licensing) once you look at the real mechanics behind the product.
In most cases, VARA oversight comes into play when you are operating as a Virtual Asset Service Provider (VASP). That umbrella includes exchanges (whether your model is centralized or more protocol-led), brokers and dealers who facilitate transactions, custody providers holding or safeguarding client assets, and businesses offering advisory or management services connected to virtual assets. If your platform is helping people buy, sell, trade, store, move, or manage digital assets – VARA will want to understand the model and regulate the risk.
The key point is this: VARA licensing isn’t a label you pick. It’s a framework you fit into. The moment your business model crosses into regulated activity, licensing becomes part of your operating foundation – shaping what you can offer, what controls you must have, and how quickly you can scale without running into compliance or banking friction later.
Who needs a VARA license in Dubai?
Any business that provides, facilitates, or controls regulated virtual asset activity in Dubai must obtain a VARA license. This includes crypto exchanges and trading platforms, brokers and dealers, custody and wallet providers, virtual asset advisory and management services, and certain NFT, Web3, and blockchain-based platforms.
Crypto exchanges and trading platforms
If users can trade through your platform, VARA will treat it as regulated activity. This is true whether trades are matched automatically, facilitated manually, or routed through hybrid or decentralized structures where the operator still controls key functions. Execution, settlement, pricing logic, and user access all factor into how VARA assesses risk. If your platform does more than display information, licensing is required.
Crypto brokers and dealers
Brokers and dealers sit between counterparties, and that position carries regulatory weight. Even where transactions happen privately – as they often do in OTC trading – VARA expects oversight when a business arranges trades, sources liquidity, or executes on a client’s behalf. The closer a firm is to influencing price or outcome, the more clearly it falls within licensing scope.
Custody and wallet service providers
Custody triggers some of VARA’s highest expectations. Any business that holds assets, controls keys, or manages access to client wallets is responsible for security, segregation, and recovery. It doesn’t matter whether custody is the headline service or a supporting feature. Where client assets are exposed, VARA expects clear safeguards and accountability, and licensing is mandatory.
Virtual asset advisory and management services
Advice becomes regulated when it shapes financial decisions. VARA licensing applies to firms offering managed portfolios, discretionary strategies, or tailored recommendations linked to virtual assets. General education and commentary sit outside this scope, but once advice influences allocation or execution, regulatory standards apply – including governance, disclosures, and ongoing oversight.
NFT, Web3, and blockchain-based platforms
Not every NFT or Web3 project needs approval, but many cross that line sooner than expected. Marketplaces, tokenized platforms, and applications that enable transfer, monetization, or financial interaction with digital assets are assessed on function, not narrative. A platform framed as “community-driven” can still fall within scope if users are effectively trading or storing value. This is one area where early regulatory clarity can prevent expensive course corrections later.
Types of VARA licenses available
VARA licenses are issued based on what a business actually does in the market, not the label it puts on the website. In broad terms, most regulated activity in Dubai tends to sit within four core buckets: the exchange license, broker-dealer license, custody license, and advisory license – with each one mapped to a different role in how virtual assets are traded, handled, or recommended.
Exchange license
An exchange license is for businesses running a venue where virtual assets are traded – meaning the platform is more than a storefront or a price screen; it’s part of the transaction itself. That usually includes centralized exchanges, but it can also include decentralized or hybrid setups if the operator still controls key pieces of the trade journey, such as who can access the platform, how orders are matched, or how settlement happens. VARA’s focus here is practical: where does control sit, how are trades executed end to end, and what safeguards exist for users when market risk and operational risk show up in real time?
Broker-dealer license
A broker-dealer license applies when a business sits between buyer and seller and makes the transaction happen – without necessarily operating a full exchange. This is the common lane for brokers and OTC desks that bring counterparties together, arrange or negotiate trades, and execute transactions on behalf of clients. Even if deals happen privately or off-platform, licensing can still apply because VARA is regulating influence and responsibility, not just technology. If you’re shaping outcomes – pricing, execution, access to liquidity – you’re no longer “just facilitating.” You’re part of the regulated chain.
Custody license
A custody license is required when your business is responsible for safeguarding virtual assets – whether you hold them directly, control the keys, manage wallets, or provide custody as an embedded feature inside a wider product. This category carries heavier scrutiny for an obvious reason: if custody fails, clients lose assets, and trust collapses fast. VARA therefore pays close attention to security design, access controls, asset segregation, operational resilience, and recovery planning. In short, if clients are relying on you to keep assets safe, the expectation is that your controls are built for real-world incidents, not best-case assumptions.
Custody activities are subject to additional regulatory requirements, including structural segregation, meaning custody services must be operated through a distinct legal entity holding a standalone VARA license.
Advisory license
An advisory license applies when a firm provides guidance on virtual assets that materially influences financial decisions – whether that’s investment advice, portfolio management, strategy, or structured recommendations. VARA draws a clear line between general education and advice that a client could reasonably act on. Once guidance becomes tailored, outcome-driven, or discretionary, regulatory obligations come into scope – including governance standards, disclosures, and suitability considerations. The simple test is influence: if what you say can move money, VARA will treat it as regulated advice, not commentary.
How to get a VARA license in Dubai
A VARA license is obtained by clearly understanding how your virtual asset business operates in practice, setting it up in the right structure, preparing compliant internal frameworks, and moving through VARA’s staged approval process until all operational conditions are met and the business is cleared to launch.
Step 1: Define your virtual asset activity and business model
This is where most VARA applications are won or lost. Licensing is driven by substance, not positioning, which means VARA will look past how a business is described and focus instead on what actually happens once users, assets, and transactions are involved. Small differences in activity can change licensing scope materially, so precision matters. Getting this definition right from the outset avoids rewrites, delays, and mismatched approvals later on. This is also the point where hands-on guidance pays off most, and where Creative Zone supports founders in shaping regulator-ready activity definitions that reflect how the business truly operates.
Step 2: Choose the correct jurisdiction and setup structure
With the activity defined, the business must be structured correctly. VARA regulates virtual asset activity conducted in or from Dubai, but the underlying company setup — whether you set up in Dubai mainland or an approved free zone (as in DIFC setup options or set up in DMCC) — still affects how the business operates day to day. Each option comes with its own commercial rules, operating constraints, and growth implications. The right choice is rarely about speed alone; it’s about aligning structure with how the business expects to trade, onboard clients, and scale over time.
Step 3: Prepare compliance and risk management frameworks
Compliance under VARA is not something that can be bolted on later. Before applying, businesses must have working AML and CFT policies, governance arrangements, and internal controls that match the realities of their model. VARA looks closely at how risk is identified, monitored, and escalated, and at who holds responsibility when decisions are made. Generic frameworks or borrowed templates are easy to spot and often slow the process down. The stronger the alignment between policy and practice, the smoother the review tends to be.
Step 4: Submit the initial application to VARA
The initial submission formally introduces the business to VARA and opens the review process. This stage is rarely a one-way handover. VARA typically asks questions, requests clarifications, and tests assumptions around activity scope, controls, and readiness. That interaction is expected. A well-prepared application does not eliminate follow-ups, but it does keep them focused and manageable rather than corrective.
Step 5: Obtain provisional approval and meet operational conditions
Provisional approval means VARA is comfortable with the business in principle, but it is not permission to operate. At this stage, attention shifts from concept to execution. VARA may require confirmation of systems, staffing, security controls, and operational infrastructure before granting final clearance. This step is designed to ensure the business can function safely under real-world conditions, not just regulatory theory.
Step 6: Receive full VARA license and commence operations
Final approval is issued once VARA is satisfied that all conditions have been met and the business is ready to operate within its approved scope. Next, businesses can apply for a corporate bank account – with banking support from Creative Zone. Only then can regulated activity begin. From day one, operations must remain aligned with the licensed activity, as VARA oversight continues beyond launch. Businesses that reach this stage with clarity and proper preparation tend to find that operating under the framework is far easier than correcting course after the fact.
Documents required for VARA license application
VARA’s documentation requirements are designed to establish credibility, accountability, and operational readiness.
- Passport copies of shareholders and directors – Used to verify the identity of individuals who own and control the business.
- Detailed business plan and operating model – Used to explain how the business operates in practice, including its licensed activities.
- AML/CFT and compliance manuals – Used to demonstrate how the business manages onboarding, transaction monitoring, reporting, and regulatory compliance.
- Risk management and cybersecurity policies – Used to show how operational, financial, and technical risks are identified, controlled, and addressed.
- Company incorporation documents – Used to confirm the company’s legal structure, ownership, management authority, and activity alignment.
- Office lease or flexi-desk agreement – Used to evidence an approved business address in Dubai and establish operational substance.
- Financial projections and capital adequacy details – Used to assess financial readiness, sustainability, and regulatory resilience once licensed.
VARA compliance and regulatory requirements
VARA compliance is built around three ongoing obligations: AML and CFT controls, clear governance and internal oversight, and continuous reporting and regulatory supervision.
AML and CFT compliance
VARA expects licensed businesses to actively manage financial crime risk, not simply document it. This means knowing who your clients are, understanding how transactions move through your platform, and being able to spot activity that does not make sense in context. KYC is only the starting point. Ongoing transaction monitoring, timely reporting of suspicious activity, and risk-based controls are where scrutiny tends to land. What matters most is whether systems work in practice – not whether policies look complete on paper.
Governance and internal controls
Governance under VARA is about clear responsibility. Someone must be accountable when decisions are made, risks are accepted, or controls fail. Licensed entities are expected to have defined oversight at board or senior management level, with compliance roles that carry real authority rather than symbolic titles. Internal controls should reflect how the business actually operates, not how it ideally would. As the company evolves, those controls are expected to evolve with it – often supported by internal reviews or external audits to confirm they still hold up.
Ongoing reporting and supervision
VARA supervision does not sit in the background. Licensed businesses are required to submit regular filings, inform the regulator of material changes, and engage when questions arise. This may involve scheduled reporting, ad hoc requests, or inspections that test whether day-to-day operations still match the approved model. Businesses that treat supervision as a working relationship tend to experience far less friction than those that treat it as a once-a-year obligation.
Cost of getting a VARA license in Dubai
The cost of getting a VARA license in Dubai typically ranges between AED 40,000 and AED 150,000+, depending on the licensed activity and the overall complexity of the business.
Costs are made up of several components rather than a single fee, and increase where regulatory oversight, compliance requirements, or operational setup are more demanding.
- Application and licensing fees – Approximately AED 40,000 to AED 100,000+
- Compliance and audit costs – Approximately AED 10,000 to AED 30,000+
- Legal and consultancy fees – Approximately AED 15,000 to AED 40,000+
- Office and infrastructure costs – Approximately AED 5,000 to AED 25,000+
- Visa and establishment card fees – Approximately AED 5,000 to AED 15,000 per visa
Advisory and brokerage models generally fall at the lower end of the range, while exchange and custody-focused businesses tend to sit higher due to additional compliance and infrastructure requirements.
Timeline for VARA license approval
VARA license approvals usually take between six weeks and several months, with timing shaped by the activity being licensed, how complete the application is, and how much regulatory detail is involved.
- Initial review – Around 2 to 4 weeks: VARA examines the proposed activity, ownership, and baseline compliance setup. Follow-up questions are common, especially where details are unclear or assumptions need testing.
- Provisional approval – Roughly 2 to 6 weeks: Issued once the application makes it through initial review, subject to operational conditions being met. Progress at this stage depends largely on system readiness and how quickly requirements are addressed.
- Final licensing – Typically 2 to 4 weeks: Granted after VARA is satisfied that all conditions have been completed and the business is ready to operate within its approved scope.
In practice, timelines move faster when applications are clear from the outset and slow down when scope, controls, or documentation need to be revisited during review.
Benefits of obtaining a VARA license in Dubai
A VARA license changes how a virtual asset business operates in the real world. Not because it adds rules, but because it removes uncertainty – for regulators, partners, users, and the business itself.
Legal certainty and regulatory clarity
Without licensing, most virtual asset businesses operate in a gray zone, even when they believe they are compliant. VARA replaces that ambiguity with defined limits and expectations. Licensed businesses know which activities are permitted, which controls are required, and where responsibility sits – which reduces guesswork and prevents regulatory surprises later.
Global credibility and investor confidence
In practice, VARA licensing functions as a filter. Investors, banks, and institutional partners often won’t engage meaningfully until regulatory approval is in place. A VARA license signals that a business has passed formal scrutiny, making discussions about funding, partnerships, and banking materially easier to progress.
Access to Dubai’s crypto and Web3 ecosystem
Dubai’s virtual asset ecosystem is highly interconnected, but access is not automatic. Licensing is often the difference between observing the market and participating in it. VARA-approved businesses are better positioned to collaborate with exchanges, service providers, and regional operators – while using Dubai as a base for wider market access.
Strong consumer protection framework
User confidence rarely comes from marketing. It comes from visible standards around custody, transparency, and accountability. VARA’s framework provides those standards, giving users clearer expectations and businesses a defensible operating position when trust becomes a deciding factor.
Long-term scalability and sustainability
Businesses that launch without regulatory structure often end up rebuilding later. VARA licensing flips that equation. By embedding compliance into the operating model from the start, companies are able to expand services, adjust offerings, and enter new markets without repeatedly revisiting their foundation.
Why choose Creative Zone to obtain a VARA license in Dubai
VARA licensing is not just about submitting an application. It requires the right structure, the right documentation, and regulatory decisions that hold up long after approval. Creative Zone provides end-to-end support across the full VARA licensing process, from jurisdiction selection and activity scoping to compliance preparation, documentation, and ongoing coordination with regulators.
What sets Creative Zone apart is practical execution. Crypto and virtual asset businesses are guided through VARA requirements in a way that aligns licensing, compliance, and operational reality, rather than treating each step in isolation. That reduces delays, avoids rework, and helps businesses enter the market on sound footing.
Whether your company is launching locally or expanding into the UAE, contact Creative Zone today to support compliant entry through structured, efficient business setup in Dubai, helping founders navigate VARA regulations with clarity, consistency, and long-term intent.
Frequently asked questions
Is a VARA license mandatory for crypto businesses in Dubai?
Yes – any business conducting regulated virtual asset activity in or from Dubai must obtain VARA approval.
How long does it take to get a VARA license?
Most applications take between six weeks and several months, depending on the activity scope and readiness of compliance frameworks.
Can foreign-owned companies apply for a VARA license?
Yes – VARA permits 100% foreign-owned companies, provided regulatory and operational requirements are met.
Does VARA regulate NFT platforms?
VARA regulates NFT platforms where functionality involves trading, custody, or financial interaction with virtual assets.
Can a VARA-licensed company open a UAE bank account?
Yes – while banking is separate from licensing, VARA approval significantly improves bank onboarding prospects.
