Crypto license in UAE

Obtain a UAE Crypto License Under VARA Regulations in 2026

The UAE, and specifically Dubai, has become one of the most attractive global hubs for crypto businesses. With the Virtual Assets Regulatory Authority (VARA) framework, companies can operate legally, access institutional banking, and build trust with international partners. Obtaining a UAE crypto license ensures compliance with strict regulatory standards and enables businesses to establish a strong presence in the MENA region and beyond.

Benefits for clients:

• Legal authorization for crypto exchanges, wallets, custody services, and token issuance
• Access to UAE banks and crypto-friendly payment providers
• AML/KYC and risk management frameworks compliant with international standards
• Investor and partner confidence
• Flexible corporate structuring for startups and institutional projects

Regulatory Authority and Legal Framework

Crypto businesses in the UAE are regulated by VARA (Virtual Assets Regulatory Authority). Licensed companies must comply with:

• VARA regulations and licensing requirements
• AML/CFT rules (anti-money laundering / counter-terrorist financing)
• Cybersecurity, data protection, and operational governance standards

The UAE emphasizes operational substance, transparency, and robust governance for all licensed operators.

Types of Crypto Activities Covered

A UAE VARA license typically covers:

• Crypto-asset exchange services
• Custody and wallet services
• Advisory services for crypto-assets
• Issuance and placement of tokens
• Transfer and execution of crypto-asset transactions

Key Requirements (2026)

1. Share Capital & Financial Requirements
   • Minimum capital depends on activity type; generally AED 1,000,000+
   • Additional reserves may be required based on operational volume
2. Management and Governance
   • Qualified directors and compliance officers
   • Functional operational presence in UAE
   • Risk management and internal audit procedures
3. AML / Compliance
   • Client due diligence (KYC)
   • Transaction monitoring
   • Internal compliance policies aligned with international standards
4. IT & Cybersecurity
   • Secure wallet and custody infrastructure
   • GDPR-equivalent or local data protection compliance
   • Cybersecurity protocols and incident reporting systems

Company Formation Requirements

Before applying for a VARA license, a legal entity must be incorporated in the UAE. Key points:

• Full foreign ownership permitted
• Flexible corporate structures (mainland or free zone)
• Fast incorporation (2–6 weeks depending on setup)
• Transparent ownership and reporting

Licensing Timeline

Typical steps for obtaining a UAE crypto license:

1. Company formation in UAE
2. Preparation of licensing documentation
3. Capital allocation and corporate setup
4. Submission to VARA
5. Regulatory review and approval

Estimated Timeline: 2–4 months (depending on readiness and documentation)

Estimated Costs (First Year)

• Government and registration fees: AED 50,000–150,000
• Legal and compliance structuring: AED 100,000–250,000
• Initial capital: AED 1,000,000+
• Operational expenses (office, audit, reporting): AED 50,000–100,000
• Total first-year budget: AED 1,200,000–1,500,000+

Banking and Payment Integration

A VARA license enhances credibility with:

• UAE banks and crypto-friendly PSPs
• Stablecoin settlement partners
• Regional payment infrastructure

Approval depends on:

• Transparent ownership and UBO disclosure
• Verified source of funds
• Strong compliance and risk management
• Functional operational substance

Ongoing Compliance Obligations

Licensed companies must:

• Maintain active AML/KYC monitoring
• Appoint compliance and AML officers
• Submit regulatory reports on time
• Conduct audits as required
• Pay annual supervisory fees

Why Choose UAE / VARA?

Compared to other jurisdictions, the UAE offers:

• Strategic location for MENA and global partnerships
• Strong institutional trust and regulatory clarity
• Access to banking and crypto-friendly infrastructure
• Flexible corporate structures suitable for startups and institutions

FAQ — UAE Crypto License 2026

How long does it take?

 2–4 months

Minimum capital? 

AED 1,000,000+ depending on activity

Is local presence required? 

Yes, operational and management presence needed

Can the license operate internationally? 

Enhances credibility globally, primarily covers UAE and MENA region