VARA Regulated Activities in Dubai

Everything You Should Know About Getting Your VARA-Regulated License

What is VARA?

If you’ve been following Dubai’s push into digital assets, you’ve probably seen “VARA” come up a few times. It stands for the Virtual Assets Regulatory Authority. This authority presides over anything crypto or blockchain-related in the city.

VARA looks after:

• Cryptocurrencies
• Digital assets like tokens
• Blockchain projects and infrastructure
• DeFi platforms (borrowing, lending, staking)
• Centralized crypto exchanges
• Token launches and ICOs

If your business touches crypto in Dubai, you’ll end up dealing with VARA at some point.

Types of VARA-Regulated Activities

VARA breaks things down into different activity types. Some of the most common ones include:

Why Start a Real Estate Holding Company in Dubai?

So why form your real estate holding company in Dubai and not somewhere else? A few reasons stand out:

Brokerages
Brokerages connect buyers and sellers of digital assets.

Investment or asset management
These cover running funds or advising investors.

Token launches
ICOs, STOs, or anything where you raise money using tokens.

Mining
These businesses operate the equipment that sustains blockchain networks and VARA crypto trading platforms.

DeFi services
These are platforms that run without an intermediary but still need oversight.

Blockchain services
Wallets, custodians, or companies building on-chain tools.

Stablecoins
Tokens tied to currencies or assets.

How to Get Your VARA Regulated Crypto License in the UAE

While the process might not be identical for everyone, getting your license involves these steps:

1. Pick Your Business Setup
   Choose whether to register your business in one of the many free zones or mainland.

2. Choose Your Activity License
   Pick a business license that fits with your chosen profession.

3. Gather Documents and Submit Application
   You’ll need to submit your licensing application, along with all the necessary documents and a business plan.

4. Establish Compliance
   You’ll need to launch security measures, such as anti-money laundering steps and know-your-customer procedures, to keep yourself and your customers safe.

5. Pay Required Fees
   You’ll need to pay all the required fees. These fees may vary depending on the category and your business activity.

6. Commence Operations
   Once approval is in, you can go live.

VARA Ongoing Maintenance and Compliance

Getting your VARA crypto business license is only half the job. Keeping it means ongoing reporting and updates. VARA expects you to provide:

Regular financial and business reports
You’ll be expected to submit regular accounting reports and financial documents.

Up-to-date AML and KYC systems
You’ll need to maintain current-gen security measures to protect your business.

Cybersecurity protocols
Your business will be required to establish and maintain standard cybersecurity measures to keep your business, your employees, and your customers' information safe.

MSZ Consultancy Can Help You Secure Your VARA Cryptocurrency License in Dubai

With Dubai aiming to be a hub for digital assets, having your VARA-approved license gives you credibility with investors, partners, and your customers. It proves that you’re not only operating legally, but that you’re taking their data security seriously.

With years of hands-on experience, MSZ Consultancy is proud to help investors and entrepreneurs set up their VARA-related business in Dubai. We can help make your start-up experience easy and stage your investments for the success you deserve.

We'll assist with licensing, visa applications, annual renewals, regulatory measures, PRO services, and much more.

Call us at +971 52 544 1248 and let us take your business endeavors into the future. We’ll provide you with a custom quote and show you why Dubai is THE home for business in the UAE.

FAQs About VARA Regulated Activities

If you have questions about VARA and surrounding business activities, you’re not alone. That’s why we’ve compiled some of the most common questions we receive on the topic:

1. Do all crypto businesses in Dubai need to be aware of VARA?

Yes, if you’re dealing with digital assets.

2. How long does the application process take?

Usually a few weeks to a couple of months. This will vary depending on your business license type, the jurisdiction you choose, and any extra approvals that may pertain to your business.

3. Can foreign founders apply?

Yes, Dubai allows overseas investors to set up here.

4. Does VARA cover NFTs?

If they’re treated as investments, then yes.

5. Do I need a separate license for each activity?

Most of the time, yes.

6. What happens if I don’t keep up with VARA compliance?

You could face fines or lose your license.

7. Are VARA-approved licenses expensive?

Not necessarily. The final cost for your license will vary depending on your chosen activity.

8. Can start-ups apply for a VARA license, or is this just for large companies?

Start-ups can apply too.

9. What about purely decentralized projects?

If they’re run from Dubai, they still fall under VARA.

10. Does VARA replace other financial regulators?

No, it specifically covers digital assets.

Summary/Intent

This blog explains VARA-related fields, the licenses under its umbrella, and the process for securing said licenses in Dubai.