Dubai Crypto License: Everything You Need to Know Before You Apply

26 Nov 2025

By Vista Corp

Most people think getting a Crypto License in Dubai is just another step in starting a business. It isn’t.

Behind the shiny headlines, there’s a quiet reality: the companies winning in Dubai’s crypto ecosystem are the ones that understand the system, not just the opportunity. They know which regulators matter, which licenses actually allow client-facing activity, and which free zones look tempting but lead nowhere.

If you’re planning to enter Dubai’s virtual asset space, there’s a world of difference between “setting up a company” and being legally allowed to operate.

This guide isn’t here to tell you what you already know.
It’s also here to tell you what most people find out too late.

Short Forms Used in This Guide

Virtual Assets Regulatory Authority (VARA)
Virtual Asset Service Provider (VASP)
Financial Services Permission (FSP)
Abu Dhabi Global Market (ADGM)
Financial Services Regulatory Authority (FSRA)
Dubai International Financial Centre (DIFC)
Dubai Financial Services Authority (DFSA)
Know Your Customer (KYC)
Anti-Money Laundering (AML)
Counter-Terrorism Financing (CFT)
Suspicious Activity Report (SAR)
Ultimate Beneficial Owner (UBO)
Initial Disclosure Questionnaire (IDQ)
Regulatory Business Plan (RBP)
Full Market Product (FMP)
Approval to Incorporate (ATI)

What is a Dubai Crypto License?

A Dubai Crypto License is a formal permission from the authorities that enables a business to work legally with cryptocurrencies and digital assets. The approval is given by the Virtual Assets Regulatory Authority (VARA), the regulator responsible for all crypto-related activities in Dubai (except DIFC). This license is formally known as a VASP License – Virtual Asset Service Provider.

VARA issues different licenses depending on what the business wants to do, such as:

Crypto exchange
Custody
Broker-dealer
Advisory services

Any company dealing with crypto in Dubai must have this license. It proves the business follows strict rules for investor protection, AML/KYC compliance, and financial transparency. Getting the license requires strong compliance systems, proper capital, and a real physical office in Dubai.

Benefits: Why Getting a Crypto License in Dubai Is a Smart Move

Choosing Dubai as your base for virtual asset activities comes with a wide range of strategic advantages. The city combines a modern regulatory system with a supportive business environment, making it one of the most attractive destinations globally for crypto and blockchain companies. Here’s what makes a Dubai crypto license so valuable:

A Business Environment Built for Global Entrepreneurs

One of the strongest draws of Dubai is the freedom it gives business owners. Companies can be fully foreign-owned, operate without a local partner, and manage their workforce without strict hiring quotas. This flexibility lets founders build their teams the way they want, scale at their own pace, and stay in full control of their business vision.

Full Profit Repatriation With No Restrictions

Dubai allows companies to transfer their profits and capital back to their home country without any limitations. This level of financial freedom reassures investors, simplifies long-term planning, and strengthens investor confidence, especially for international crypto firms.

Strong International Tax Treaties for Cross-Border Business

The UAE has an extensive network of double taxation agreements with countries around the world. These treaties help reduce the tax impact on cross-border transactions, making global operations smoother and more efficient for crypto businesses that operate across multiple jurisdictions.

Tax Advantages That Support Growth

Dubai’s tax system is known for being highly favourable to businesses. The absence of personal income tax, no tax on dividends, and a business-friendly corporate tax framework make it easier for crypto companies to reinvest and scale. For international entrepreneurs, the ability to operate without heavy tax burdens is a major competitive advantage.

Zero Customs Duties Within the GCC

Companies based in Dubai enjoy duty-free movement of goods within the Gulf Cooperation Council (GCC). For blockchain and crypto firms dealing with hardware, mining equipment, or regional logistics, this creates smoother and more cost-efficient operations across neighbouring markets.

A Stable Currency and a Business Language Everyone Speaks

The UAE dirham (AED) is pegged to the US dollar, offering stability and predictability for businesses dealing with international clients and transactions. English is the default language for business, banking, and legal documentation, removing language barriers for global founders.

A Government That Actively Backs Web3 Innovation

Dubai’s leadership has positioned the UAE as a global hub for blockchain and digital asset innovation. From national blockchain programs to virtual asset regulatory frameworks, the government continuously invests in the growth of the fintech ecosystem. This proactive support makes Dubai a fertile ground for Web3 ideas, pilots, and large-scale crypto initiatives.

Accessible Entry for Startups and New Projects

Unlike many countries where entering the crypto industry requires heavy upfront capital, Dubai offers a more flexible and accessible setup environment. Early-stage companies can establish themselves without mandatory high-capital investment rules, making it easier for startups to enter and grow within the ecosystem.

Activities Covered Under a Crypto License in the UAE

A UAE Crypto License allows businesses to operate across multiple virtual-asset activities under the supervision of the Virtual Assets Regulatory Authority (VARA) and other relevant regulators. The scope is wide, covering almost every function connected to digital assets.

Here’s a breakdown of the main activities that fall under this license:

1. Virtual Asset Exchange Operations

This includes running platforms that allow users to trade digital assets, whether it’s crypto-to-crypto, crypto-to-fiat, or fiat-to-crypto. Both centralised exchanges (CEXs) and decentralised exchanges (DEXs) fall under this category. Any business enabling buying, selling, or swapping tokens must have this authorisation.

2. Broker & Trading Intermediary Services

Companies that help clients execute trades, pass on orders, or act as middlemen between buyers and sellers are considered broker-dealers. Even businesses relaying or transmitting client orders require licensing because they facilitate the movement of virtual assets.

3. Custody & Safekeeping Solutions

If a company provides storage for digital assets, especially where private keys, multi-sig wallets, or secure vaults are managed, it must be licensed for custody services. This category covers providers offering long-term or short-term safeguarding of client assets.

4. Virtual Asset Advisory Services

Any business offering professional recommendations or investment-related advice on virtual assets must be licensed. This includes one-on-one advice, portfolio suggestions, market analysis, and structured recommendations to clients.

5. Lending, Borrowing & Yield-Based Products

Firms offering crypto loans, staking programs, interest-bearing accounts, or yield-generation services need approval. These activities involve client funds and, therefore, fall under regulated activities to ensure transparency and safety.

6. VA Portfolio Management & Investment Operations

If a company manages digital-asset portfolios, handles funds on behalf of clients, or makes investment decisions involving virtual assets, it must be licensed under management services. This includes firms running funds, discretionary accounts, or structured investment products with crypto exposure.

7. Transfer, Settlement & Wallet Services

Businesses that offer wallet services, facilitate peer-to-peer transfers, or manage the transfer of digital assets between users also require a license. This covers operational functions that ensure the secure movement and settlement of virtual assets.

8. Virtual Asset Issuance (Certain Categories)

Some types of issuance, such as issuing stablecoins or launching specific categories of tokens, require licensing. VARA identifies these under dedicated issuance permissions, particularly where consumer risk or market impact is high.

If your business performs any activity involving the buying, selling, storing, managing, transferring, issuing, or advising of digital assets, you will likely need a crypto license in Dubai or the UAE to operate legally and avoid regulatory penalties.

Types of Crypto Licenses by Jurisdiction in the UAE

Below is a breakdown of what each economic zone actually allows, who regulates it, and what kind of license you can obtain.

1. ADGM (Abu Dhabi Global Market): FSRA

Regulator: FSRA
License: Financial Services Permission (FSP) for Digital Assets

What It Allows:

Crypto exchanges
Custody and safekeeping
Broker-dealer activities
Investment management

Who It’s Best For: Institutional firms, large exchanges, and asset managers.
Capital requirements are high, but this is the most mature regulatory badge in the region.

2. DWTC (Dubai World Trade Centre): VARA

Regulator: VARA
License: Full VASP License

What It Allows:
All eight regulated VARA activities, including:

Exchanges (CEX/DEX)
Custody
Lending & borrowing
Broker-dealer
Advisory
Management
Transfer & settlement
VA issuance (specific categories)

Important: You need two approvals.
1️. Operational license from DWTC
2️. VASP License from VARA

This is the main hub for large, global crypto players.

3. DMCC (Dubai Multi Commodities Centre)

Regulator: DMCC + VARA (combined ecosystem)
Licenses Available Inside DMCC:

Proprietary Crypto Trading
Distributed Ledger Technology (DLT)
Web3 / Blockchain Development

Please Note: These licenses only allow technology development or proprietary trading.

They do NOT allow:
✘ Running an exchange
✘ Handling client funds
✘ Offering custody services
✘ Brokerage
✘ Public-facing crypto activities

To do any regulated activity, a DMCC company must also obtain a VARA VASP License.

4. DAFZA (Dubai Airport Free Zone): SCA

Regulator: SCA
Scope: Crypto advisory, specialised trading desks, cross-border operations.

Running a full-scale exchange or custody platform usually requires specific approval from the SCA, as DAFZA’s standard trade licenses are limited.

5. IFZA (International Free Zone Authority)

Regulator: VARA
Scope: Highly restricted due to VARA’s rules

IFZA Permits:

Blockchain consultancy
Web3 development
IT services
Smart contract programming

IFZA does NOT permit regulated VASP activities such as:
✘ Exchanges
✘ Brokerage
✘ Custody
✘ Lending or borrowing products
✘ Managing client crypto portfolios

This free zone is mainly suited for tech or development companies & not for financial activities.

Eligibility Criteria for Getting a Crypto License in Dubai

Getting a crypto license in Dubai is mainly about proving that your business is safe, serious, and capable of protecting users and their money. Here are the key requirements explained in the simplest possible way:

1. You Need Enough Capital (Money in the Business)

Every crypto activity has a minimum capital requirement.
The more sensitive the activity, the higher the capital you need.

Advisory or low-risk services: Lower capital requirement.
Exchange, custody, or anything involving client funds: Much higher capital requirement.

VARA, ADGM, and DIFC all have their own capital rules, but the general idea is simple:
The riskier the service, the more capital you must maintain.

Note: Even if a free zone only asks for AED 50,000 to open a company, the regulator (VARA or FSRA) will expect a much higher capital amount for the actual crypto license.

2. You Must Have Strong Compliance Systems

Regulators want to ensure your business can detect and stop illegal or risky activity.
So you must show that you have proper systems to protect users.

This includes:

KYC: Verifying the identity of your customers.
AML policies: Preventing money laundering.
Monitoring tools: Tracking unusual or high-risk transactions.
Reporting ability: Submitting suspicious activity reports to authorities.

In simple terms: You need clear rules, proper software, and trained staff to keep the platform safe.

3. You Need a Solid & Clear Business Plan

To get a license, you must show the regulator that you know exactly how your business will operate.

Your plan should include:

What services will you offer?
How does your technology work (basic explanation)?
How will you keep users’ assets safe?
Your revenue model.
Your risk management approach.
Financial forecasts.

This helps the regulator confirm that you are prepared, organised, and serious about long-term operations.

4. Your Leadership Team Must Be “Fit and Proper”

Regulators check the background of the people running the company.

This includes:

Shareholders
Directors
Compliance Officer
Money Laundering Reporting Officer

They must have:

A clean legal record
Relevant experience
Financial honesty
No history of fraud or regulatory violations

In short: Only trustworthy, qualified people can run a licensed crypto business.

5. Your Company Must Be Registered in the Right Free Zone

You must set up the company in a free zone that actually allows crypto licensing.

Examples:

DWTC or DMCC for VARA licensing
ADGM for FSRA licensing
DIFC for DFSA licensing

Setting up in the correct free zone is part of proving you are eligible.

6. You Must Have a Physical Presence in the UAE

Most crypto regulators require:

A real office
Local operations
On-ground compliance staff

This ensures that your business is genuinely operating from the UAE and not remotely managed from another country.

7. Your Technology Must Meet Basic Security Standards

Regulators expect your platform to be safe and reliable.

This means:

Secure storage (especially for private keys if you do custody)
Proper cybersecurity
Clear disaster recovery plans
Data protection systems

The goal is simple: Protect user assets and avoid hacks or loss.

How to Get a Crypto License in Dubai (VARA VASP Process)

Getting a crypto license in Dubai involves a detailed, step-by-step process designed to ensure your business is safe, compliant, and professionally set up.

Step 1: Choose Your Regulator and Where You Will Set Up

Before applying, you must decide where your business will be based because that determines the regulator and the rules you must follow.

Option 1: VARA (Dubai)

Most crypto businesses in Dubai fall under VARA (Virtual Assets Regulatory Authority).
This regulator covers Dubai’s major free zones like DWTC and DMCC and issues the VASP License.

Option 2: ADGM (FSRA) or DIFC (DFSA)

These are separate financial free zones with their own regulators:

FSRA in ADGM (Abu Dhabi)
DFSA in DIFC (Dubai International Financial Centre)

They are suited for more institutional, finance-heavy firms and usually require higher capital and stricter systems.

Step 2: Understand VARA’s Two-Stage Licensing Process

Getting a VARA license happens in two major stages:

Stage 1: Initial Approval (ATI)

You submit:

Initial Disclosure Questionnaire (IDQ)
A high-level Regulatory Business Plan
Company ownership details
Details of senior management for the “Fit and Proper” checks

If approved, VARA gives you an Approval to Incorporate (ATI).
This lets you:
✔️ Register your company
✔️ Set up your office

But you cannot conduct any crypto activity yet.

Stage 2: Full Market Product (FMP) License

This is the detailed review stage. You must submit:

Full, detailed Regulatory Business Plan
AML & KYC manuals
Cybersecurity and data protection policies
Proof of paid-up capital (varies by activity: ~AED 100,000 to AED 1.5M+)
Appointment of Compliance and AML officers in Dubai

Once everything is reviewed and approved, you receive the Full VASP License, allowing you to legally operate your chosen crypto activities.

Step 3: Set Up Your UAE Company and Office

Once you have ATI (Stage 1 approval):

Company Formation

Physical Office Requirement

You must have a real, physical office in Dubai.
A flexi-desk is generally not enough for a full crypto license, because regulators want proof that your business has real operational substance.

Step 4: Regulatory Review & Due Diligence

During this stage, the regulator validates every part of your business to make sure it is safe and compliant.

They check:

Financial Strength

You must show proof of capital and usually maintain a Net Liquid Assets reserve, often 1.2x your monthly operating expenses.

Key Personnel Check

Regulators run background checks on:

Directors
Shareholders
Compliance officers
Money Laundering Reporting Officers

This is known as the Fit and Proper Test.

Operational Readiness

Your systems must be ready to operate safely.
This includes:

Your technology stack
Wallet infrastructure
Cybersecurity systems
User protection and risk management procedures

Step 5: Final Approval, Launch, and Banking

After you pass all checks, the regulator issues your Official VASP License.

Only then can you:

Launch Your Crypto Operations Legally in Dubai

This includes the specific activities you were approved for (exchange, custody, advisory, etc.).

Open a Corporate Bank Account

Banks now support licensed VASPs, but they will still review:

Your final VASP license
Your business model
Your compliance structure

Once the bank is satisfied, your account is opened, and you are fully operational.

Documents Required For Crypto Licensing in Dubai

Stage 1: Company Setup & Initial Approval (ATI)

These documents are needed to set up the company and obtain VARA’s Approval to incorporate.

Company & Personal Documents

3 company name options (for name reservation).
Passport copies of all shareholders, directors, and managers.
Proof of address for all key personnel (utility bill or visa page)
No Objection Certificate (NOC), if any key person is employed in the UAE
Memorandum of Association (MOA)
Articles of Association (AOA)

Regulatory Documents

Initial Disclosure Questionnaire (IDQ)
Basic ownership & shareholding structure
Initial high-level business description

Stage 2: Full Market Product (FMP) Approval

These documents are required after ATI for final regulatory review and issuance of the VASP License.

Business & Governance Documents

Detailed Regulatory Business Plan (RBP)
Organisational structure chart
Governance & internal control manuals

Compliance & Risk Documentation

Full AML/CFT Manual
KYC & Customer Due Diligence (CDD) procedures
Transaction monitoring & sanctions screening policies
Suspicious Activity Reporting (SAR) procedures
Risk Management Framework

Personnel & Vetting Documents

Fit & Proper declarations for all senior personnel
CVs of directors, senior management, Compliance Officer & MLRO
Source of Funds / Source of Wealth for UBOs
Ownership structure with UBO details

Financial Documents

Proof of paid-up capital (as per activity requirement)
Minimum Net Liquid Assets evidence (if applicable)
Professional Indemnity (PI) Insurance
Directors & Officers (D&O) Insurance
Commercial Crime Insurance

Technology & Security Documents

Cybersecurity policy
Data protection and privacy policy
IT systems & access control documentation
Incident Response Plan
Business Continuity Plan (BCP)
External audit or readiness assessment report

Cost of a Dubai Cryptocurrency License

The overall cost of getting a crypto license in Dubai depends on several factors. Mainly, the type of license you choose, the regulator overseeing it, and the activities your business plans to offer.

If you apply through VARA (Virtual Assets Regulatory Authority), the main regulator for exchanges, custody providers, broker-dealers, and other regulated virtual asset activities, the costs are generally higher. This is because VARA-regulated licenses need more comprehensive compliance reviews, ongoing supervision, and stricter operational requirements.

In contrast, some free zones, such as IFZA or technology-focused zones, offer more affordable crypto-related licenses, but these typically cover non-regulated activities like blockchain development, consultancy, or internal proprietary trading. They do not allow public-facing exchange operations, custody, or handling of client assets.

In addition to the regulator’s licensing fees, businesses should also plan for other expenses such as:

Office space
Compliance and AML staff
Legal and advisory services
Cybersecurity and technology infrastructure
External audits
Visas and administrative setup

These supporting requirements can significantly influence the total investment needed to operate a crypto business in Dubai, so it’s important to consider the full picture rather than just the license fee.

Do You Pay Tax on Crypto Earnings in the UAE?

The UAE offers one of the world’s most favourable tax and regulatory environments for virtual assets (VAs), but the treatment depends entirely on whether you are an individual investor or a licensed business.

1. For Individuals (Personal Investment)

Income & Capital Gains Tax: Generally 0%.
The UAE maintains a 0% personal income tax and capital gains tax policy. If you are trading or investing in crypto (including Bitcoin, tokens, and NFTs) in your personal capacity and are not required to be licensed, your profits are generally not taxed.

2. For Licensed Businesses (Corporate Tax)

Corporate Tax Rate: A 9% Corporate Tax is applied to taxable profits exceeding AED 375,000 for Mainland companies and Non-Qualifying Free Zone companies.

Zero-Tax Exception (QFZP): If your company is registered in a Free Zone and qualifies as a QFZP (Qualifying Free Zone Person), you may benefit from a 0% Corporate Tax rate on your Qualifying Income (which typically includes VA trading or service fees derived from non-Mainland clients).

The Crucial Rule: To retain the 0% status, your non-qualifying revenue (e.g., from Mainland activities or excluded activities) must not exceed the de minimis threshold (the lower of 5% of your total revenue or AED 5 million). Exceeding this threshold results in the loss of QFZP status for the current and subsequent four tax periods, making the entire taxable profit subject to the standard 9% rate.

3. Key VAT and Compliance Updates

VAT Exemption on Crypto Trading (New)

In a major development, the Federal Tax Authority (FTA) has clarified that the transfer, purchase, and exchange of virtual assets (crypto, tokens) are now exempt from VAT, applied retroactively from January 1, 2018.
This significantly reduces costs for exchanges and traders.

Note: Fees charged for services like advisory, platform access, or remunerated custody/management may still be subject to the standard 5% VAT.

Strict Regulation (VARA)

All entities dealing with virtual assets in Dubai must operate under the Virtual Assets Regulatory Authority (VARA).
This mandates strict licensing, high standards for governance, consumer protection, and rigorous compliance with AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations.

Global Reporting (CARF)

The UAE has committed to the Crypto-Asset Reporting Framework (CARF), meaning licensed platforms will be required to exchange data on their customers’ crypto transactions with other jurisdictions.
This reinforces the need for accurate documentation and transparency.

Final Words

What’s happening in Dubai today is what the rest of the world will follow tomorrow. A proper crypto license isn’t just a legal requirement; it’s your entry ticket into a regulated future that rewards transparency, trust, and well-governed innovation. If you’re serious about building in this industry, Dubai is giving you the blueprint. The question now is how well you choose to use it.

Why Choose Vista Business Setup

If you’re ready to begin, you don’t have to figure it out alone.

At Vista Business Setup, we simplify the entire journey, helping you choose the right jurisdiction, organising your paperwork, handling compliance, and getting your license approved without the usual back-and-forth.

You focus on the business. We’ll take care of the setup.

You still have questions?

Book a Free Consultation

Disclaimer: This guide is for informational purposes only and should not be interpreted as legal, financial, or regulatory advice. Crypto licensing requirements in the UAE are subject to change, and each business case is assessed individually by the relevant regulators. Always consult qualified professionals before proceeding. TheVistaCorp assumes no liability for actions taken solely based on this article.