VARA License in Dubai: Your Complete Guide with The Alchamii
As the UAE rapidly becomes a global hub for blockchain and Web3 innovation, Dubai’s Virtual Asset Regulatory Authority (VARA) stands at the center of its regulatory framework. For businesses in the crypto, NFT, or blockchain space, understanding and acquiring a VARA license is now essential.
At The Alchamii, we specialize in helping visionary Web3 businesses navigate the complexities of VARA compliance—from advisory to exchange licenses. This guide breaks down what you need to know and how we can help.
What is VARA?
The Virtual Asset Regulatory Authority (VARA) is the official regulatory body in Dubai overseeing virtual assets and services. It was established in 2022 by the Dubai government to regulate, license, and supervise Virtual Asset Service Providers (VASPs) operating in or from Dubai.
VARA is responsible for creating a secure and future-forward regulatory environment that supports innovation without compromising on investor safety or AML compliance.
Why VARA Matters for Web3 Businesses
For any business looking to engage in activities like crypto trading, NFT marketplaces, custody services, DeFi platforms, or Web3 advisory, a VARA license is a must.
At The Alchamii, we help you:
- Understand the right license type for your business model
- Meet the required capital and operational standards
- Set up your entity and physical presence in Dubai
- Prepare for VARA’s compliance reviews and audits
Types of VARA Licenses (2024)
VARA provides different licenses depending on your business function. Here’s how The Alchamii categorizes and supports them:
License Type | What It Covers | How The Alchamii Supports |
Advisory Services | Investment advice, research | Business structuring, legal compliance |
Broker-Dealer Services | Buying/selling crypto on behalf of clients | Setup, custodial integration, risk checks |
Custody Services | Holding client crypto securely | Infrastructure and compliance frameworks |
Exchange Services | Facilitating crypto trades | Regulatory support, liquidity partnerships |
Lending & Borrowing | DeFi or centralized lending services | AML setup, smart contract audit guidance |
Management & Investment | Managing VA portfolios, staking | Capital structuring, client KYC onboarding |
Transfer & Settlement | Token transaction processing | Secure wallet and escrow setup |
NFT Marketplace | Buying/selling NFTs | Marketplace setup and licensing advisory |
Capital Requirements (2024)
License Type | Capital Requirement |
Advisory Services | AED 100,000 (USD 27,300) |
Broker-Dealer (VARA Custody) | AED 400,000 or 15% of fixed overheads |
Broker-Dealer (Other Custody) | AED 600,000 or 25% of fixed overheads |
Custody Services | AED 600,000 or 25% of fixed overheads |
Exchange (VARA Custody) | AED 800,000 or 15% of fixed overheads |
Exchange (Other) | AED 1.5M or 25% of fixed overheads |
Lending & Borrowing | AED 500,000 or 25% of fixed overheads |
Management & Investment (VARA Custody) | AED 280,000 or 15% of fixed overheads |
Management & Investment (Other) | AED 500,000 or 25% of fixed overheads |
Transfer & Settlement | AED 500,000 or 25% of fixed overheads |
✅ Alchamii Tip: In addition to capital, VASPs must maintain liquidity of at least 1.2x monthly expenses.
Do You Need a VARA License?
If you’re offering any kind of virtual asset services in Dubai, whether directly or through a platform, the answer is yes.
At The Alchamii, we assist:
- Startups registering for the first time
- International crypto firms opening Dubai branches
- NFT marketplaces and DeFi projects seeking compliant launch paths
Common Questions — Answered by The Alchamii
Do I need a license if I only trade crypto with my own funds?
Yes, even proprietary trading firms must either register with VARA or apply for a No-Objection Certificate (NOC). If your 30-day trading volume exceeds USD 250 million, licensing becomes mandatory.
Can I serve retail clients with a VARA license?
Yes, with the appropriate license and compliance controls. Some services may initially be restricted to qualified or institutional clients, but retail access can be unlocked post-approval.
What investor categories does VARA recognize?
- Retail Investors: General public
- Qualified Investors: Net assets > AED 500,000 and financial knowledge
- Institutional Investors: Licensed financial institutions
🔍 The Alchamii helps you design investor onboarding processes to match these categories.
What are Category 1 & 2 Issuances?
- Category 1: Fiat-Referenced Virtual Assets (FRVAs), like stablecoins (licensed by VARA or the UAE Central Bank)
Category 2: All other virtual asset issuances, especially those involving large value or a wide investor base
How The Alchamii Can Help You Get a VARA License
Whether you’re launching an NFT marketplace, starting a crypto advisory firm, or building the next Web3 exchange—The Alchamii provides full-stack VARA compliance support, including:
✅ Business model validation
✅ License selection & application
✅ Entity formation & office setup in Dubai
✅ AML/KYC policies & risk assessments
✅ Tokenomics, legal structuring & audit connections
Ready to Build Your Web3 Business in Dubai?
Don’t let regulation slow down your innovation. Partner with The Alchamii to get compliant, get licensed, and grow in one of the most crypto-forward cities in the world.
📩 Contact us today to begin your VARA licensing journey.