Licence Applications

VARA welcomes Virtual Asset firms to be regulated in Dubai

VARA's regulatory regime is founded on establishing clear guard rails to foster proactive and responsible market participation. VARA welcomes firms from the UAE or overseas that share VARA’s principles, and applications for its Virtual Asset Service Provider (VASP) Licence are now being accepted. Any firm seeking to carry on Virtual Asset Activities in or from Dubai (excluding DIFC) must apply for a VARA License prior to commencing operations.

Application submissions can be made through Dubai Economy and Tourism (DET) for mainland firms, or any Dubai Free Zone Authority (FZA) in the emirate of Dubai (excluding DIFC).

For more information about DET and Free Zones, please visit: Why Dubai section

Apply for a VARA Licence [ New Firms ]

Applying for a VARA Licence is completed in two stages; First, application for initial approval to establish a legal entity and to commence operational setup, then an application for the VASP license.

For firms carrying on VA Activities in or from Dubai (excluding DIFC) prior to 7 February 2023, section: Apply for a VARA Licence [ Existing Firms ]

Stage 1 - Initial Approval Application

  1. 1. Submit an Initial Disclosure Questionnaire [IDQ] to Dubai Economy & Tourism [DET] or a relevant Free Zone Authority [FZA]
  2. 2. Provide additional documentation as required. Such documentation will include a business plan, and details of the firm’s beneficial owners and senior management
  3. 3. Pay initial fees [normally 50% of licence application fee] required to commence the application review
  4. 4. Receive an Initial Approval to finalise the firm’s legal incorporation and to complete operational set-up including office space rental, employee on-boarding, and so forth. NOTE: At this point, the firm is not permitted to carry on Virtual Asset activities

VARA reserves the right not to issue an Initial Approval should the firm’s activities fall outside the regulatory perimeter or where a firm may not meet appropriate standards to be regulated.

 

Stage 2 - Virtual Asset Service Provider (VASP) Licence Application

Following receipt of an Initial Approval a firm can apply for a VASP Licence: 

  1. 1. Prepare and submit documentation according to the guidance provided by VARA upon receipt of the Initial Approval 
  2. 2. Receive feedback directly from VARA on the submission which may include meetings, interviews, and submission of further documentation 
  3. 3. Pay remaining portion of application licence fees and first year’s supervision fees 
  4. 4. Receive a VASP Licence, which may be subject to operational conditions 

Details of VARA’s Licensing and Supervision fees can be found in Schedule 2 of the Virtual Assets and Related Activities Regulations 2023.

Details of VARA’s Capital Requirements can be found in Part IV of the Company Rulebook.

VARA reserves the right not to issue a VASP Licence should the firm’s activities fall outside the regulatory perimeter or where a firm may not meet appropriate standards to be regulated.

Apply for a VARA Licence [ Existing Firms ]

Firms carrying on VA Activities in or from Dubai [excluding DIFC] prior to 7 February 2023, were required to contact their commercial licensor (DET or the relevant FZA) by 30 April 2023 to submit an Initial Disclosure Questionnaire (IDQ).

Firms that did not complete the IDQ by 30 April 2023 should contact their commercial licensor urgently and arrange to do so.

For firms that have completed an IDQ, VARA has commenced issuance of Application Acknowledgement Notices (AAN). Upon receipt of an AAN, a firm must complete a VASP Licence application by 31 August 2023. Completion of the VASP Licence application is described above.

 

VASP Application Documentation

The following information is a non-exhaustive list of documents required for a VASP Licence application. Through the process of licencing VARA may require further documentation to be supplied.

1 Certificate of entity incorporation

2 List of Ultimate Beneficial Owner(s) (UBOs)

3 Fit and Proper confirmation

4 Source of funds evidence

5 Organisational structure

6 Governance framework

7 Local entity website

8Key personnel

  • Job descriptions
  • CVs
  • Passport copies

9Regulatory Business Plan

10Financial projections

11 Group-level financial statements

12 Proof of paid-up capital

13Available capital locked-up

14Reserve account report

15Insurance certificate(s)

16Succession plan

17Wind-down plan

18Close links / associated entities analysis

Looking for information on types of licensed activities?

There are seven virtual asset activites that VARA regulates. Learn more about the VARA Licensed Activities here.

Still have questions about the licensing process?

If you are unable to find the answers you are looking for, please review our General FAQs for further information.