Virtual Asset Broker-Dealer Services Licence (Dubai (VARA))
The Virtual Asset Broker-Dealer Services Licence lets a firm execute, match, place or make markets in virtual assets in Dubai under VARA's Law No. (4) of 2022. Paid-up capital is AED 600,000 (or 25% of overheads), cut to AED 400,000 with an approved custodian. There is no fixed statutory decision deadline; the application fee is AED 100,000 and annual supervision AED 200,000.
At a glance
| Official name | Virtual Asset Broker-Dealer Services Licence1 |
|---|---|
| Also known as | VARA broker-dealer licence · Dubai crypto broker licence · VA Broker-Dealer Services licence |
| Issued by | Virtual Assets Regulatory Authority |
| Jurisdiction | Dubai (VARA) |
| Licence family | Virtual asset service provider (non-MiCA) |
| Legal basis | Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai2 Cabinet Decision No. 111/2022 on the Regulation of Virtual Assets and Their Service Providers3 Cabinet Decision No. 112/2022 on Delegating Certain Competencies related to the Regulation of Virtual Assets4 |
| Passporting | Domestic only |
| Minimum capital | AED 600,000, or 25% of fixed annual overheads, whichever is higher; reduced to AED 400,000, or 15% of fixed annual overheads, whichever is higher, where custody of client assets is provided by a VARA-licensed custodian or a custody arrangement otherwise approved by VARA during licensing5 |
| Application fee | AED 100,0006 |
| Annual fee | AED 200,0006 |
| Statutory decision time | No fixed statutory determination deadline is prescribed by Law No. (4) of 2022 or Regulations 2023; VARA exercises discretionary review based on submission completeness.7 |
| Public register | official register8 |
| Current holders | 418 |
What it lets you do
| Execution of orders for crypto-assets on behalf of clients | Concluding agreements to buy or sell crypto-assets on behalf of clients, including subscribing to offers. |
|---|---|
| Exchange of crypto-assets for funds | Buying or selling crypto-assets against fiat money using the provider's own capital. |
| Exchange of crypto-assets for other crypto-assets | Concluding contracts with clients to swap one crypto-asset for another using the provider's own capital. |
Where it is valid
Requirements
| Requirement | What is needed | Legal reference |
|---|---|---|
| Capital and people assessed | ||
| Minimum capital | AED 600,000, or 25% of fixed annual overheads, whichever is higher; reduced to AED 400,000, or 15% of fixed annual overheads, whichever is higher, where custody of client assets is provided by a VARA-licensed custodian or a custody arrangement otherwise approved by VARA during licensing5 | |
| Ongoing own funds | Net Liquid Assets must be maintained at all times at no less than 1.2x monthly operating expenses, reconciled daily and reported to VARA monthly; eligible Net Liquid Assets are limited to cash/cash-equivalents or AED/USD-referencing virtual assets approved by VARA.9 | |
| Who is assessed | Every Board member is individually vetted and approved by VARA as Fit and Proper on appointment and re-assessed at least annually. The two Responsible Individuals and Senior Management are vetted the same way at licensing. Controlling Entities and Ultimate Beneficial Owners must be identifiable in the ownership chain and declared free of PEP/sanctions exposure; any party reaching 25% or more of voting rights or equivalent control is treated as a Controlling Entity.10 | |
| Substance and people | ||
| Management and people | The VASP must maintain two Responsible Individuals: full-time employees who are Fit and Proper and are either UAE residents or UAE passport holders: notified to and approved by VARA during the licensing process.11 | |
| Management and people | Every Board member must be individually assessed by the VASP and approved by VARA as a Fit and Proper Person, with the Board re-confirming each member's status at least annually.10 | |
| AML/CFT | A Money Laundering Reporting Officer with at least two years' AML/CFT experience must be appointed and confirmed Fit and Proper; the MLRO reports to the Board quarterly on AML/CFT policy effectiveness, may hold other non-client-facing roles, and AML/CFT tasks may be outsourced only if the MLRO remains fully accountable.12 | |
| Local presence | The licensee must be incorporated in Dubai and hold a VARA Permit before it may obtain the underlying commercial licence or commence virtual asset business.2 | |
| Conditions to keep the licence | ||
| Withdrawal | VARA may vary, suspend (for up to six months) or revoke the Licence/Permit for material regulatory breach, insolvency, an unpaid court judgment, or other good cause, alongside cancellation of the underlying commercial licence.2 | |
| Reporting | Net Liquid Assets must be reconciled daily and reported to VARA monthly, maintained at no less than 1.2x monthly operating expenses at all times.9 | |
| Requirement | Controlling Entities and Ultimate Beneficial Owners must be kept identifiable in the ownership chain and declared free of Politically Exposed Person or sanctions status.13 | |
| AML/CFT | The MLRO must report to the Board at least quarterly on the effectiveness of the VASP's AML/CFT policy.12 | |
Cost
Buying a company that already holds it
The VARA Permit/Licence itself is not transferable or assignable to another party without VARA's prior approval; an unauthorised assignment is null and void (Article 17, Law No. (4) of 2022). A change of ownership is instead effected as a share or asset deal in the licensed entity, which separately requires VARA's prior written approval once 25% or more of voting rights or equivalent control passes to the acquirer (see change_of_control).2
Prior approval required. Under Company Rulebook Part VIII.C, no action may be taken that may result in a change of Control of a VASP without VARA's prior written approval. Prior to any transaction, the VASP and acquirer must submit a joint written application. Control is presumed when an entity directly or indirectly owns or controls 25% or more of voting shares, possesses power to direct management/policies, or can appoint or dismiss the majority of the Board or Senior Management. The statutory assessment period is thirty (30) Working Days from deemed receipt of a complete application, extendable by VARA. Assessments consider public interest, investment vs controlling intent, board influence, and fit-and-proper standards.14
Ready-made companies holding this licence: see verified positions.
VASP in other countries
| Country | Licence | Regulator | Min. capital | Application fee | Statutory time |
|---|---|---|---|---|---|
| Abu Dhabi Global Market (ADGM) | VASP licenceFinancial Services Permission with Virtual Asset Activities Endorsement | FSRA | USD 250,000 | USD 20,000 | n/a |
| Australia | VASP licenceRegistration as a virtual asset service provider (VASP) on the AUSTRAC Virtual Asset Service Provider Register (formerly the Digital Currency Exchange Register) | AUSTRAC | n/a | n/a | n/a |
| Bermuda | Digital Asset Business Class F (Full) Licence | BMA | n/a | n/a | n/a |
| Bermuda | Digital Asset Business Class M (Modified) Licence | BMA | n/a | n/a | n/a |
| Bermuda | Digital Asset Business Class T (Test) Licence | BMA | n/a | n/a | n/a |
| British Virgin Islands | Virtual Assets Service Provider Registration | BVI FSC | n/a | n/a | n/a |
| Cayman Islands | Virtual Asset Service Provider Licence | CIMA | n/a | KYD 5,000 | n/a |
| Cayman Islands | Virtual Asset Service Provider Registration | CIMA | n/a | KYD 1,000 | n/a |
| Dubai (VARA) | Virtual Asset Advisory Services Licence | VARA | AED 100,000 | AED 40,000 | n/a |
| Dubai (VARA) | Virtual Asset Broker-Dealer Services Licence | VARA | AED 600,000 | AED 100,000 | n/a |
| Dubai (VARA) | Virtual Asset Custody Services Licence | VARA | AED 600,000 | AED 100,000 | n/a |
| Dubai (VARA) | Virtual Asset Exchange Services Licence | VARA | AED 1,500,000 | AED 100,000 | n/a |
| Dubai (VARA) | Virtual Asset Lending and Borrowing Services Licence | VARA | AED 500,000 | AED 100,000 | n/a |
| Dubai (VARA) | Virtual Asset Management and Investment Services Licence | VARA | AED 500,000 | AED 100,000 | n/a |
| Dubai (VARA) | Virtual Asset Transfer and Settlement Services Licence | VARA | AED 500,000 | AED 40,000 | n/a |
| Dubai International Financial Centre (DIFC) | Financial Services Permission with Crypto Token Activities Endorsement | DFSA | USD 1,000,000 | USD 15,000 | n/a |
| El Salvador | Proveedor de Servicios de Activos Digitales (PSAD) registration | CNAD | USD 2,000 | USD 5,475 | ~0.9 mo |
| Germany | Qualified crypto custody licence | BaFin | n/a | n/a | n/a |
| Ireland | Virtual Asset Service Provider AML/CFT Registration | CBI | n/a | n/a | n/a |
| Mauritius | Virtual Asset Advisory Services (Class I) | FSC | n/a | n/a | n/a |
| Mauritius | Virtual Asset Broker-Dealer (Class M) | FSC | n/a | MUR 2,000,000 | n/a |
| Mauritius | Virtual Asset Wallet Services (Class O) | FSC | n/a | n/a | n/a |
| Mauritius | Virtual Asset Custodian (Class R) | FSC | n/a | MUR 5,000,000 | n/a |
| Mauritius | Virtual Asset Market Place (Class S) | FSC | n/a | MUR 6,500,000 | n/a |
| Seychelles | Virtual Asset Service Provider Licence / RegistrationVirtual Asset Service Provider Licence / Registration (Wallet Provider, Exchange, Broking, Investment Provider) under the Virtual Asset Service Providers Act 2024 | FSA | n/a | SCR 75,000 | n/a |
| South Africa | Crypto Asset Service Provider licenceCrypto Asset Service Provider licence (an FSP authorisation category under FAIS, not a MiCA-equivalent regime) | FSCA | n/a | n/a | n/a |
| Switzerland | Financial intermediary / VASP SRO affiliation | FINMA | CHF 10,000,000 | CHF 1,600 | n/a |
| United Kingdom | Cryptoasset Business Registration (MLRs 2017) | FCA | n/a | GBP 11,260 | ~3 mo |
Values come from each licence's page, where every figure has its source.
Laws behind it
- Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai: Law No. (4) of 2022
- Virtual Assets and Related Activities Regulations 2023: Virtual Assets and Related Activities Regulations 2023
Getting this licence
Protegra handles this licence end to end: crypto licensing in Dubai (VARA): process, timeline and our fee.
Frequently asked questions
How much capital does a VARA broker-dealer licence need?
The Company Rulebook sets paid-up capital at the higher of AED 600,000 or 25% of fixed annual overheads. That drops to the higher of AED 400,000 or 15% of overheads if client assets are held by a VARA-licensed custodian or a custody arrangement VARA has separately approved during licensing.
How long does VARA take to decide a broker-dealer licence application?
Neither Law No. (4) of 2022 nor the 2023 Regulations set a fixed statutory deadline; VARA reviews applications at its discretion based on completeness. Applicants go through a two-stage process (Initial Disclosure Questionnaire, then full licensing review), and market reports commonly describe the full process taking several months, though VARA itself publishes no target figure.
Can a VARA broker-dealer licence also hold client assets in custody?
Not under the same legal entity. Virtual Asset Custody Services is the only VARA-regulated activity that must be carried out through a structurally segregated, standalone entity with its own licence, so a broker-dealer relying on in-house custody would need a separate custody-licensed affiliate or a VARA-approved third-party custodian.
Who has to pass VARA's fit-and-proper test at a broker-dealer VASP?
Every Board member individually, the firm's Senior Management, and its two designated Responsible Individuals must each be assessed as Fit and Proper before appointment and the Board re-confirmed at least annually. Controlling Entities and Ultimate Beneficial Owners must also be identified and declared free of PEP or sanctions exposure.
Can a VARA broker-dealer licence be sold to a new owner?
The licence itself cannot be assigned or transferred: Article 17 of Law No. (4) of 2022 makes any unauthorised assignment null and void. A sale instead takes the form of a share or asset deal in the licensed company, and any transaction crossing 25% of voting rights or control needs VARA's prior written approval as a change of Control.
Sources
- vara.ae: licensed activities · retrieved 2026-09-24
- VARA Rulebooks: law no 4 2022 regulating virtual assets emirate dubai · retrieved 2026-09-24
- VARA Rulebooks: cabinet decision no 1112022 regulation virtual assets and th · retrieved 2026-09-24
- VARA Rulebooks: cabinet decision no 1122022 delegating certain competencies · retrieved 2026-09-24
- VARA Rulebooks: b paid capital · retrieved 2026-09-24
- VARA Rulebooks: schedule 2 supervision and authorisation fees · retrieved 2026-09-24
- VARA Rulebooks: b varas licensing and authorisation powers · retrieved 2026-09-24
- vara.ae: public register · retrieved 2026-09-24
- VARA Rulebooks: c net liquid assets · retrieved 2026-09-24
- VARA Rulebooks: b board · retrieved 2026-09-24
- VARA Rulebooks: c responsible individuals · retrieved 2026-09-24
- VARA Rulebooks: appointment and duties money laundering reporting officer · retrieved 2026-09-24
- VARA Rulebooks: company ownership structure · retrieved 2026-09-24
- VARA Rulebooks: c change control · retrieved 2026-09-24
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