Crypto License

Dubai is rapidly emerging as a global hub for digital asset innovation. Supported by a robust regulatory framework and a strategic geographic location connecting the Middle East, Europe, Africa, Asia, and beyond, Dubai presents an ideal environment for launching a Virtual Asset Service Provider (VASP).
This proposal outlines a comprehensive plan for Investors to establish itself as a trusted and efficient digital asset service provider targeting both retail and institutional clients.

Market Opportunity

Growing Demand for Digital Asset Services

The global digital asset market is projected to reach $10 trillion by 2030, driven by the adoption of stablecoins, tokenized assets, and decentralized finance (DeFi). Dubai, with its progressive regulatory environment, is well-positioned to attract international investors seeking compliant and secure digital asset services.

Stablecoins and Tokenized Assets

Stablecoins like USDT, USDC, and DAI have become critical for cross-border payments, remittances, and hedging against volatility. Additionally, top market-cap tokens (e.g., BTC, ETH, SOL) are increasingly used as investment vehicles. By offering brokerage services for these assets, Investors can tap into a lucrative and growing market.

Types of Cryptocurrency Licenses Available in the UAE

License Type	Authority / Jurisdiction	Description
Crypto License (IFZA)	International Free Zone Authority	Ideal for blockchain consulting and digital wallet services.
DMCC Crypto License	Dubai Multi Commodities Centre	Supports proprietary crypto trading and blockchain-based businesses.
ADGM Crypto License	Abu Dhabi Global Market (FSRA)	Focused on exchanges, custody, and asset management with strong AML oversight.
Crypto Exchange License	VARA / FSRA	Required for operating crypto exchanges.
DLT License	DIFC / DMCC / DAFZA	For non-financial blockchain applications.
DWTC Crypto License	Dubai World Trade Centre	Crypto platforms with VARA compliance.
Crypto Asset License	VARA	Covers custody, asset management, tokenization, and wallet services.

Key Differentiators

Guaranteed T+2 Settlement Time
Fast and reliable transaction settlement.
Most Competitive Global Brokerage Fees
Leveraging strategic partnerships for cost efficiency.
Large-Volume Settlements
Tailored to institutional clients and HNWIs.
No Threshold Limitations
Open access for all client segments.
Cross-Border Stablecoin Settlements
Reduced cost and time for global transactions.
Advanced Compliance & Security
- AML/KYC with blockchain analytics
- Cybersecurity protocols (MFA, encryption)
- Insurance & audit frameworks

Technology Infrastructure

Trading Platform – Secure, scalable OTC platform
Custody Solutions – Institutional-grade multi-sig wallets & cold storage
Compliance Tools – Automated AML/KYC systems
Liquidity Partnerships – Deep liquidity for competitive execution

Revenue Streams

Transaction Fees – Brokerage on crypto transactions
Custody Fees – Secure asset storage fees
Advisory Fees – Investment consulting & portfolio management
Spread Income – Profit from price spreads on trades

Strategic Advantages

First-Mover Advantage
Establishing early leadership in a fast-growing space.
Regulatory Compliance
Enhances institutional trust and reduces risk.
Global Reach
Settlement across G20 currencies and stablecoins.
Scalability
Expandable to more digital assets and financial products.

Required Documents for Crypto Licensing in UAE

Responsive Table

Document Type	VARA	DFSA	FSRA	SCA
Business Plan	✅	✅	✅	✅
Corporate Structure Info	✅	✅	✅	✅
AML/KYC Policy	✅	✅	✅	✅
Compliance Framework	✅	✅	✅	✅
Cybersecurity Policy	✅	✅	✅	✅
Financial Statements	✅	✅	✅	✅
Key Staff Background	✅	✅	✅	✅
Risk Management	✅	✅	✅	✅
Application Form	✅	✅	✅	✅

Document Type	VARA	DFSA	FSRA	SCA
Business Plan	✅	✅	✅	✅
Corporate Structure & Shareholder Info	✅	✅	✅	✅
AML/KYC Policy	✅	✅	✅	✅
Compliance Framework	✅	✅	✅	✅
Cybersecurity Policy	✅	✅	✅	✅
Financial Statements	✅	✅	✅	✅
Key Staff Background Checks	✅	✅	✅	✅
Risk Management Strategy	✅	✅	✅	✅
Application Form	✅	✅	✅	✅

Key Regulatory Authorities in UAE

VARA – Dubai Virtual Assets Regulatory Authority
FSRA – Abu Dhabi Global Market
DFSA – Dubai International Financial Centre
SCA – Securities and Commodities Authority (Federal)

Steps to Obtain a Crypto License in Dubai

Consultation & Planning (1 week)
Pre-Approval Application (2 weeks)
Due Diligence (4–6 weeks)
Final Application (2 weeks)
License Issuance (1–2 weeks)

DWTC Fee Structure

Item	Cost (AED)
Registration Fee (One-Time)	2,000
License Fee – Year 1	25,000
License Fee – Year 2+	27,000
Establishment Card (Annual)	2,300
Security Deposit (Refundable)	3,500
Executive Office (3 Visa Quota)	49,000 / year
Executive Office (6 Visa Quota)	70,000 / year
Additional VA Activity (Annual)	8,000 / activity

VARA VASP Licensing Process

Stage 1: Initial Setup

Company setup through DET or DWTC
Secure office space and initial approval

Stage 2: Full VASP License Application

Submit documentation to VARA
Review, feedback, and final fees
License issued upon approval

Important Notes:

Custody Services must operate as a separate legal entity
VASPs are prohibited from proprietary trading under the VASP license

VARA Licensing Fees

Activity	Application Fee	Annual Supervision Fee
Advisory Services	AED 40,000	AED 80,000
Broker Dealer Services	AED 100,000	AED 200,000
Custody Services	AED 100,000	AED 200,000
Exchange Services	AED 100,000	AED 200,000
Lending and Borrowing Services	AED 100,000	AED 200,000
VA Management and Investment Services	AED 100,000	AED 200,000
VA Transfer and Settlement Services	AED 40,000	AED 80,000