Dubai VARA Licence: Costs, Steps and Timeline (2026 Guide)
How to get a VARA licence in Dubai: the 8 licensed crypto activities, official fees, the two-stage approval process, timelines, and what to prepare.
Quick answer: To offer crypto or virtual asset services in or from Dubai (outside the DIFC), you need a licence from VARA, the Virtual Assets Regulatory Authority. You apply in two stages:
- an Approval to Incorporate, which lets you set up the company but not start operating
- the full VASP licence
Application fees range from AED 40,000 to AED 100,000 per activity, plus an annual supervision fee. The licence must be renewed every year.
What is VARA?
VARA is Dubai's regulator for virtual assets. It licenses and supervises crypto and virtual asset businesses across Dubai's mainland and free zones. The one exception is the DIFC (Dubai International Financial Centre), which has its own regulator, the DFSA.
Abu Dhabi is also separate. Firms there go through ADGM and its regulator, the FSRA. See our ADGM licensing services if you're comparing the two.
You must be licensed by VARA before you start operating. Running virtual asset activities in Dubai without a licence is a breach of the law.
Which activities need a VARA licence?
VARA licenses 8 virtual asset activities. You need a licence for each one you offer:
- Advisory services
- Broker-dealer services
- Custody services
- Exchange services
- Lending and borrowing services
- Management and investment services
- Transfer and settlement services
- VA issuance (Category 1)
Every licensed firm must follow VARA's four compulsory rulebooks:
- Company
- Compliance and Risk Management
- Technology and Information
- Market Conduct
It must also follow the rulebook for each activity it's licensed for.
How much does a VARA licence cost?
VARA's official fee schedule (Rulebook Schedule 2) sets these application fees per activity:
| Activity | Application fee (AED) |
|---|---|
| Advisory services | 40,000 |
| Transfer and settlement services | 40,000 |
| Broker-dealer services | 100,000 |
| Custody services | 100,000 |
| Exchange services | 100,000 |
| Lending and borrowing services | 100,000 |
| Management and investment services | 100,000 |
| VA issuance (Category 1) | 100,000 |
On top of that:
- An annual supervision fee for each licensed activity, paid before you start that activity. For example, advisory services carry AED 80,000 a year.
- A licence extension fee if you add more activities later.
- Company setup and office costs with Dubai Economy and Tourism (DET) or your free zone. These are separate from VARA's fees.
- Capital requirements, set in Part IV of VARA's Company Rulebook. They depend on your activities.
VARA can also raise fees based on your risk profile, such as your market share, client base, business complexity or compliance history. Always check the latest schedule on VARA's rulebook site before budgeting.
How to get a VARA licence: the two stages
Stage 1: Approval to Incorporate (ATI)
- Submit the Initial Disclosure Questionnaire (IDQ). Mainland companies submit it through DET. Free zone companies submit it through their free zone authority.
- Add supporting documents: a business plan, and details of your beneficial owners and senior management.
- Pay the initial fee, usually about 50% of the licence application fee.
- Receive the ATI. This lets you incorporate and set up operations. You still can't offer virtual asset services at this point.
Stage 2: The full VASP licence
- Prepare and submit the full application using the guidance VARA sends with your ATI. It covers policies, governance, compliance, risk management and technology.
- Answer VARA's questions. Expect meetings, interviews and requests for more documents.
- Pay the rest of the application fee and the first year's supervision fee.
- Receive your VASP licence. It may come with operational conditions you must meet.
How long does it take?
VARA doesn't publish a fixed timeline. It depends on how complex your business is and how complete your documents are. In practice, firms usually plan for several months from the first questionnaire to the full licence. Incomplete documents and slow answers to VARA's questions are the most common causes of delay.
What you need to prepare
- A clear business plan showing which of the 8 activities you'll offer, to whom, and from where
- Ownership and management details, including beneficial owners. Expect fit-and-proper checks.
- An AML/CFT compliance program with a qualified compliance officer. Many firms use an outsourced compliance officer.
- Risk management, technology and cybersecurity policies that meet VARA's rulebooks
- Market conduct policies, including how you'll market to clients
- A Dubai office and company setup through DET or a free zone
- Capital that meets the Company Rulebook requirements for your activities
VARA vs other licences
Many of our clients run in several markets. Dubai's VARA licence often sits alongside:
- FINTRAC MSB registration in Canada
- FinCEN MSB registration in the US
Each has its own rules, but a strong core AML program can be adapted for all of them. See MSB vs VASP vs PSP for how the categories compare.
Frequently asked questions
Do I need a VARA licence to run a crypto business in Dubai?
Yes, if you carry out any of VARA's 8 licensed activities in or from Dubai's mainland or free zones. The DIFC is regulated separately by the DFSA.
How much does a VARA licence cost?
Application fees are AED 40,000 or AED 100,000 per activity, depending on the activity. On top of that come annual supervision fees, company setup costs and capital requirements.
Can I start operating after the first approval?
No. The Approval to Incorporate only lets you set up the company. You can only offer virtual asset services after you receive the full VASP licence.
How long is a VARA licence valid?
VARA licences are annual. You must renew each year and pay the annual supervision fee.
Is VARA the same as ADGM?
No. VARA covers Dubai (except the DIFC). ADGM is Abu Dhabi's financial free zone, with its own regulator, the FSRA.
AML Incubator helps crypto and virtual asset firms prepare VARA applications, build compliance programs and provide outsourced compliance officers.
