Last updated: 25 July 2026. A practical guide to obtaining a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA): the licence categories, capital and fee requirements, the application process, and how long it takes. For the live list of who already holds one, see our tracker of all 51 VARA-licensed VASPs.
What is a VARA VASP licence?
VARA is the sole regulator of virtual assets across Dubai’s mainland and free zones, except within the Dubai International Financial Centre (DIFC). Any business conducting a virtual-asset activity from Dubai — running an exchange, brokering, custody, advisory, lending, or asset management — must hold the corresponding VASP licence. Licences are activity-based: a provider is authorised only for the specific services it applies and qualifies for, and must add categories to expand.
The VASP licence categories
- Exchange Services — operating a virtual-asset trading venue (a subset covers derivatives trading)
- Broker-Dealer Services — matching buyers and sellers
- Custody Services — safeguarding client assets, sometimes including custodial staking
- Management & Investment Services — managing client virtual assets
- Lending & Borrowing Services
- Advisory Services
- VA Issuance (Category 1) — issuing virtual assets
- VA Transfer & Settlement Services
Cost: fees and capital requirements
Figures below are reported ranges for 2026 and vary by activity. VARA’s official fee schedule is the authority — confirm current numbers with VARA before budgeting.
| Item | Reported range (AED) |
|---|---|
| Application fee (one-off) | ~40,000 – 100,000 (activity-dependent) |
| Annual supervision fee | ~80,000 – 200,000 |
| Min. paid-up capital — Advisory | ~100,000 |
| Min. paid-up capital — Broker-Dealer | ~400,000 – 600,000 |
| Min. paid-up capital — Management & Investment | ~280,000 – 500,000 |
| Min. paid-up capital — Lending & Borrowing | higher of ~500,000 or 25% of annual overheads |
| Min. paid-up capital — Custody | higher of ~800,000 or 15% of annual overheads |
Beyond VARA’s own fees, most applicants budget substantially more for legal counsel, compliance and AML setup, technology audits, and office lease — total set-up costs are commonly reported in the AED 500,000–2,000,000 range depending on activity and scale.
The application process, step by step
Licensing typically runs four to seven months across two stages:
- Initial Disclosure Questionnaire (IDQ) — submitted via the relevant Free Zone Authority or Dubai Economy & Tourism (DET), with a Regulatory Business Plan covering activities, governance, risk management and revenue model.
- Initial Approval — VARA reviews and, if satisfied, issues an approval to proceed.
- In-Principle Approval (IPA) — a conditional step; the applicant completes final requirements but cannot operate or service clients yet.
- Full VASP Licence — granted once all operational, capital, compliance and technology conditions are met. Only now can the provider go live.
What you need to prepare
- Regulatory Business Plan and financial projections
- AML/CFT policies and compliance manuals
- Governance and risk-management framework
- Proof of paid-up capital for the chosen activity
- Technology architecture and security documentation
- Physical presence in Dubai — a leased or owned office is mandatory
Frequently asked questions
How long does a VARA licence take?
Typically four to seven months from Initial Disclosure Questionnaire to full licence, depending on activity complexity and how complete the application is.
How much does a VARA licence cost?
VARA application fees are reported at roughly AED 40,000–100,000 with annual supervision fees of around AED 80,000–200,000, both activity-dependent. Total set-up including legal, compliance and office is commonly AED 500,000–2,000,000. Confirm current fees with VARA.
Do I need an office in Dubai?
Yes. VARA requires physical presence — a leased or owned office in Dubai — as a condition of licensing.
Can I operate on an In-Principle Approval?
No. An IPA is a conditional pre-licence step. You cannot conduct any virtual-asset activity or service clients until the full VASP licence is granted.
Related coverage
- Tracker: all 51 VARA-licensed VASPs
- VARA’s Token Issuance Rules: How Dubai Classifies Every Token
- Dubai VARA Tokenisation: Emirate Passes 50 Licensed VASPs
Cryptonite is independent of the projects it covers. This guide is informational and not financial, legal, or tax advice. Licence requirements and fees change — always confirm against VARA’s official guidance. See our Editorial Policy.
