Dubai is quickly becoming a go-to place for anyone looking to start a crypto or blockchain business. With the Virtual Assets Regulatory Authority (VARA) set up in 2022, the rules are clear, which makes it easier and safer for entrepreneurs to run crypto exchanges, wallet services, NFTs, or other digital asset projects.
On top of that, Dubai’s business-friendly environment, low taxes, and smooth setup process make it a natural choice for entrepreneurs and investors looking to tap into the fast-growing crypto market.
A crypto license in Dubai is basically the official approval you need to run a business in the digital assets space. This license allows you to legally operate activities such as crypto trading, exchange services, advisory, token issuance, and blockchain solutions. It also ensures your business is fully compliant with important regulations like anti-money laundering (AML) and customer protection.
What really sets Dubai apart is the mix of regulatory clarity and global opportunity. The rules are straightforward, and the government has made it clear which activities are allowed, and which are not. And, at Shuraa Business Setup, we provide professional support in obtaining a crypto license in the UAE, ensuring a smooth and compliant setup.
So, if you too are ambitious to tap into Dubai’s crypto market, here’s how to get a crypto license in Dubai and everything essential you must know before you begin.
What is a Crypto License in Dubai?
A crypto license in Dubai is an official approval that allows a business to operate legally in the digital asset space. It ensures your company follows government rules, maintains proper standards, and builds trust with clients and investors. Without a license, operating in the crypto market can lead to penalties or even legal action.
Activities Covered Under Crypto License in the UAE:
The license covers a wide range of activities in the crypto and blockchain world. This includes:
- Exchange Services: Operating a platform (a CEX or DEX) that facilitates the trading, conversion, or exchange between Virtual Assets and fiat currency, or between different Virtual Assets (crypto-to-crypto).
- Broker-Dealer Services: Acting as an intermediary in buying, selling, or transmitting orders for Virtual Assets on behalf of clients.
- Custody Services: Providing services for the secure storage and safeguarding of clients’ Virtual Assets, often involving managing private keys.
- Advisory Services: Offering professional advice or personal recommendations regarding Virtual Asset investments.
- Lending and Borrowing Services: Facilitating lending, staking, or yield-generating products involving Virtual Assets.
- Management and Investment Services: Managing investment portfolios or funds that include Virtual Assets.
- Transfer and Settlement Services: Providing services like wallet operation and facilitating the peer-to-peer transfer of Virtual Assets.
- VA Issuance (Category 1): Licensing the issuance of certain Virtual Assets, such as stablecoins.
Basically, if your business deals with cryptocurrencies or other digital assets in any way, you’ll likely need a crypto license in Dubai or the UAE to operate safely and legally.
Regulatory Authorities for Crypto Businesses in Dubai
Dubai’s approach to regulating cryptocurrency and digital assets involves multiple authorities, each overseeing specific aspects of the sector.
- Virtual Assets Regulatory Authority (VARA): VARA is Dubai’s main authority for regulating crypto and digital assets outside the DIFC. It ensures businesses like crypto exchanges, wallet providers, and blockchain advisory firms operate legally and follow clear rules. Getting a VARA license helps companies stay compliant, build investor trust, and avoid penalties. VARA exclusively governs virtual asset activities within the Emirate of Dubai, excluding the Dubai International Financial Centre (DIFC).
- Dubai Financial Services Authority (DFSA): DFSA oversees crypto businesses within the Dubai International Financial Centre (DIFC). If your business is based in DIFC or targets high-end financial clients, you need a DFSA license. It covers activities like trading, custodial services, and crypto advisory, ensuring companies meet strong compliance standards.
- Dubai Multi Commodities Centre (DMCC): DMCC is a free zone in Dubai that supports crypto businesses through its Crypto Centre. It helps companies get licenses for trading, blockchain software, and consulting. DMCC offers infrastructure, tax benefits, and a supportive ecosystem for startups and established businesses alike.
- Dubai Airport Freezone Authority (DAFZA): DAFZA is another Dubai free zone, strategically located near the airport, ideal for companies targeting international markets. It allows crypto trading and digital asset businesses through approvals in partnership with the Securities and Commodities Authority (SCA), offering free zone benefits along the way.
- Abu Dhabi Global Market (ADGM): ADGM is Abu Dhabi’s international financial free zone with its own framework for crypto and blockchain businesses. It licenses activities like exchanges, wallet services, token issuance, and consultancy. ADGM is great for companies looking to operate under Abu Dhabi regulations while serving global clients.
The choice of regulatory authority depends on your business’s location and activities. VARA is the primary authority for crypto businesses operating within Dubai (excluding DIFC), while DMCC offers a supportive environment for crypto ventures. ADGM caters to those looking to establish themselves in Abu Dhabi, and DAFZA provides opportunities for businesses near Dubai International Airport.
Types of Crypto Licenses in Dubai (VARA License)
The VARA Crypto License is issued by the Virtual Assets Regulatory Authority for businesses operating in Dubai (outside DIFC). It allows companies to carry out crypto trading, exchange services, digital wallets, NFTs, and advisory services.
If your company’s service falls into any of these categories, you need the corresponding license:
- Crypto Trading License: A Crypto Trading License in Dubai is ideal for businesses that want to buy, sell, or exchange cryptocurrencies. It allows crypto brokers, traders, and platforms facilitating digital asset transactions to operate legally in Dubai while complying with anti-money laundering (AML) rules and other regulatory requirements.
- Crypto Exchange License: For companies running full-scale exchange platforms, a Crypto Exchange License in Dubai is required. This license covers user-to-user trading, liquidity management, and platform operations. It ensures that exchanges meet Dubai’s compliance standards while building credibility and trust among investors and clients.
- Blockchain & Distributed Ledger Technology (DLT) License: Businesses developing blockchain applications or offering distributed ledger technology (DLT) solutions can apply for a Blockchain & DLT License. This license is suitable for startups or tech companies working on smart contracts, tokenisation platforms, or blockchain-based services across finance, healthcare, logistics, and other sectors.
- NFT & Metaverse License: The NFT & Metaverse License is designed for companies creating, managing, or trading NFTs and virtual assets. This includes NFT marketplaces, digital art platforms, and metaverse projects. With this license, businesses can legally operate in Dubai’s emerging virtual asset space while ensuring investor and client confidence.
- Crypto Consultancy & Advisory License: A Crypto Consultancy & Advisory License allows firms to provide professional guidance in the crypto and blockchain space. Advisory services may include market research, token strategy, blockchain implementation, and investment consulting. Holding this license ensures that advisory businesses operate safely under Dubai’s regulatory framework while building credibility with clients.
- Crypto Proprietary Trading License: Crypto Proprietary Trading is all about trading cryptocurrencies using your own company’s funds instead of handling money for clients. It’s a great option for trading firms, hedge funds, or startups that want to make profits from market movements while keeping full control over their investments. Like other crypto activities in Dubai, you’ll need a proper license and must follow KYC/AML rules, with approvals from authorities such as VARA, DMCC, DIFC, or ADGM.
Crypto License Offered by Top Free Zones & Jurisdictions in the UAE
UAE also offer several crypto licenses depending on the type of digital asset activities and the jurisdiction you choose. Each license is tailored to help businesses operate legally while building investor trust.
- IFZA Crypto License: The IFZA Crypto License provides an option for crypto companies that want a free zone setup with simpler requirements and lower costs. It’s suitable for startups looking to trade cryptocurrencies, provide wallet services, or offer blockchain consultancy. While it has a more streamlined setup process, IFZA license holders must still comply with UAE regulations.
- DMCC Crypto License: The DMCC Crypto License is offered through Dubai Multi Commodities Centre’s Crypto Centre, designed for companies developing blockchain applications, running exchanges, or providing crypto consultancy. DMCC is one of the most popular free zones for crypto businesses due to its infrastructure, investor network, and tax-friendly policies.
- DIFC Crypto License: The DIFC Crypto License, regulated by the Dubai Financial Services Authority (DFSA), is required for businesses operating within the Dubai International Financial Centre. It is ideal for high-end financial services, crypto exchanges, custodial services, and advisory firms targeting global investors. DIFC licensing ensures strong compliance and access to Dubai’s financial ecosystem.
- Abu Dhabi Global Market (ADGM) License: For companies looking to operate in Abu Dhabi, the ADGM Crypto License is issued by the Abu Dhabi Global Market. ADGM’s framework supports exchanges, token issuance, wallet services, and blockchain consultancy. This license allows businesses to comply with Abu Dhabi’s regulations while targeting international markets.
- Dubai World Trade Centre (DWTC) Crypto License: The DWTC Crypto License is part of Dubai’s initiative to become a global hub for virtual assets. Regulated by the Virtual Assets Regulatory Authority (VARA), this license is ideal for large-scale crypto exchanges, DeFi platforms, and blockchain enterprises aiming for global operations. DWTC provides a business-friendly environment, world-class infrastructure, and direct access to Dubai’s international financial and technology ecosystem.
Eligibility Criteria for Getting a Crypto License in Dubai
Getting a crypto license in Dubai isn’t just about filling out forms; it’s about showing that your business is trustworthy, well-planned, and ready to operate safely in the fast-growing digital assets market. Here’s what regulators look for:
Minimum Capital Requirements:
Depending on the type of license and the free zone, there’s a minimum capital you need to start your crypto business. For example:
- VARA (Dubai mainland): Usually between AED 1 million to AED 5 million, depending on your services.
- DIFC: Starts around AED 1.8 million but can go higher if you handle custody or trading operations.
- ADGM (Abu Dhabi): Around AED 917,500 and up, depending on your business scope.
- DMCC & IFZA Free Zones: Often more flexible, starting from AED 50,000, which is great for startups.
KYC and AML Compliance:
Crypto authorities in Dubai take Know Your Customer (KYC) and Anti-Money Laundering (AML) rules very seriously. This means your business needs to:
- Verify the identity of all clients and assess risks.
- Keep detailed records of transactions for several years.
- Report suspicious activity to authorities.
- Follow rules for international fund transfers.
Approved Business Plan
Applicants must submit a comprehensive business plan that outlines:
- Business Activities: Clear description of the services and operations, including crypto proprietary trading if applicable.
- Market Analysis: Understanding of the target market and competition.
- Financial Projections: Forecasts of revenue, expenses, and profitability.
- Risk Management: Strategies to mitigate potential risks.
What are the Documents Required to Get a Crypto License in Dubai?
To legally operate a crypto business in Dubai, you’ll need to submit specific documents to the relevant regulatory authority or free zone.
- Passport copies of all shareholders, directors, and beneficial owners
- Detailed business plan
- Bank reference letter
- Police clearance certificates for all shareholders and directors
- Company incorporation documents (MoA, trade name reservation, initial approvals)
- Lease agreement for office space (or flexi-desk arrangement in some free zones)
- AML/KYC policies and internal compliance procedures
- Proof of minimum share capital (bank statement or letter confirming deposit
How to Get a Crypto License in Dubai?
Getting a crypto license in Dubai is easier than you think if you follow the right steps.
1. Choose Your Strategic Base: Picking the Right Jurisdiction
Your first and most critical decision is selecting the authority that aligns with your business model. Dubai offers several world-class options:
- VARA (Virtual Assets Regulatory Authority): The broad regulator for the Emirate of Dubai (excluding the DIFC and ADGM). Ideal for businesses targeting the broader UAE market.
- DMCC: A highly popular free zone, known for its Crypto Centre and strong support for trading, asset management, and custody services.
- DIFC (Dubai International Financial Centre): A common-law jurisdiction regulated by the DFSA. Perfect for businesses seeking a framework familiar to international finance.
- ADGM (Abu Dhabi Global Market): Located in the capital, it’s a prestigious, well-regulated hub under the FSRA, attractive to high-caliber financial service providers.
2. Meeting Regulatory Requirements
Once you’ve chosen your jurisdiction, prepare for a thorough review. Regulators demand robust operational frameworks. Key requirements include:
- Fit and Proper Tests: Comprehensive background checks on all shareholders, directors, and senior management.
- AML/CFT & KYC Frameworks: Demonstrable policies for Anti-Money Laundering, Combating the Financing of Terrorism, and Know-Your-Client procedures.
- Financial Soundness: Proof of sufficient capital to meet minimum requirements and sustain operations.
- Internal Governance: Detailed manuals covering risk management, data protection, and corporate governance.
Step 3: Sign Lease Agreement & Establish Office
Authorities require proof of a physical office or flexi-desk depending on the jurisdiction:
- Provides a legal business address for correspondence
- Demonstrates operational readiness
- Some free zones allow shared or virtual office arrangements for startups
4. Submit Your Application
Submit your application to the relevant authority (VARA, DMCC, DIFC, or ADGM). Include all documents and pay the applicable application fee. Some jurisdictions may require pre-approval interviews or presentations.
5. Regulatory Review
The authority will review your documents, business model, and compliance measures. They may request additional information or clarification. Approval typically takes 4–6 weeks, depending on jurisdiction and completeness of your application.
6. Obtain Crypto License and Launch
Once all documents, compliance checks, and office arrangements are verified, the authority issues the crypto license. This license allows you to legally conduct your crypto activities in Dubai or the chosen jurisdiction. Make sure to maintain all compliance requirements even after obtaining the license.
7. Banking and Financial Operations
A corporate bank account is essential for handling your crypto operations. Many UAE banks now support crypto-related businesses (subject to regulatory approval). You’ll need your license, company documents, and shareholder information to open the account.
Cost of a Dubai Cryptocurrency License
The cost of getting a crypto license in Dubai really depends on the type of license you choose, the authority you apply under, and the kind of services you want to provide.
If you’re going through VARA (Virtual Assets Regulatory Authority) in Dubai, expect higher costs because it’s the main regulator for exchanges, custody providers, and broker-dealers. Application fees usually start around AED 40,000 and can go well above AED 100,000, with annual supervision fees also in the tens of thousands.
Some other free zones, like IFZA, offer entry-level crypto or blockchain licenses starting at around AED 15,000–40,000, but these are usually limited to consulting, software development, or support services rather than full trading or exchange platforms.
On top of the license fees, don’t forget there are extra costs like office space, compliance staff, legal and advisory services, audits, and visas. These can add up quickly, so it’s always smart to budget a bit higher than the basic license cost.
Why Choose the UAE for Obtaining a Crypto License?
Getting a crypto license in the UAE opens doors to real opportunities for growth. Here’s why it makes sense:
- Global Recognition: Dubai is quickly becoming a world hub for blockchain and digital assets. A license from Dubai adds credibility and makes it easier to attract international investors and partners.
- Regulatory Clarity: Unlike many countries where rules are still unclear, Dubai has a clear framework for crypto businesses. This gives you peace of mind that you’re operating in line with the law.
- Investor and Customer Trust: Being licensed signals to clients, partners, and investors that you’re reliable and safe to work with. In a space where scams are common, this trust can make a big difference.
- Access to Banking and Financial Services: Banks in the UAE are more open to working with licensed crypto companies. Without a license, opening and maintaining a business bank account is often very difficult.
- Legal Protection: Dubai crypto license ensures your business is protected under UAE law, reducing the risk of penalties, shutdowns, or disputes.
- Flexibility of Jurisdictions: Dubai offers different licensing options through VARA, DMCC, DIFC, IFZA, and more – so you can choose the one that best suits your budget and business model.
Is Earning from Cryptocurrency Taxable in the UAE?
One of the biggest reasons crypto investors and businesses look to the UAE is its tax-friendly environment. Now, individuals do not pay personal income tax in Dubai or anywhere else in the UAE. That means if you’re trading or investing in crypto as an individual, your gains are generally not taxed.
For businesses, the situation is slightly different. The UAE has introduced a 9% corporate tax on profits above AED 375,000. So, if your company is registered and licensed to deal with crypto, your profits from those activities may fall under corporate tax rules. However, free zones often provide incentives like tax holidays or exemptions, depending on your license and the nature of your business.
It’s also worth noting that the UAE is committed to global compliance standards. This means crypto businesses must follow strict AML (Anti-Money Laundering) and KYC (Know Your Customer) rules, even if the tax treatment is favourable.
Let’s Simplify Your Crypto License Process
Dubai has positioned itself as one of the most welcoming places in the world for crypto and blockchain businesses. By getting a proper crypto license in Dubai, you’re ticking a regulatory box, you’re building trust, securing compliance, and setting your business up for long-term success.
If you’re ready to start, the process doesn’t have to be complicated. At Shuraa Business Setup, we help you every step of the way – from helping you pick the right jurisdiction to managing paperwork, compliance, and final license issuance, we provide end-to-end support to make your crypto journey in Dubai smooth and stress-free.
Frequently Asked Questions (FAQs)
1. Is cryptocurrency legal in the UAE?
Yes, cryptocurrency is legal in the UAE. However, all crypto-related activities must be regulated and licensed by approved authorities like VARA, DMCC, DIFC, or ADGM.
2. How do I obtain a crypto license in Dubai?
You’ll need to choose the right jurisdiction (such as VARA or DMCC), prepare your business plan, meet compliance requirements (AML/KYC), submit documents, and get approvals from the regulator.
3. Do I need a license to trade crypto in Dubai?
If you’re trading crypto as an individual investor, you don’t need a license. But if you want to run a crypto business such as an exchange, wallet service, or advisory firm, you must get licensed.
4. How much does it cost to get a crypto license in Dubai?
The cost to get a crypto license in Dubai varies significantly based on the chosen jurisdiction and business activity. In free zones like DMCC, a basic license can start from AED 15,000 to AED 40,000, while a mainland license through VARA can exceed AED 150,000 and more.
Overall, initial setup costs typically range from AED 20,000 to AED 50,000, but the total first-year cost—including office space, regulatory fees, and compliance—can reach AED 100,000 or higher. It’s crucial to note that annual fees for ongoing supervision, compliance, and office space are separate and can add substantially to the total operational cost.
5. How can I open a cryptocurrency account in the UAE?
Licensed exchanges and crypto platforms in the UAE allow you to open a crypto trading account by completing KYC verification and linking your UAE bank account.
6. Which cryptocurrencies are legal in Dubai?
Dubai allows trading in approved cryptocurrencies such as Bitcoin, Ethereum, and other virtual assets authorised by licensed exchanges under VARA or free zones.
7. What are the authorised crypto companies in the UAE?
Authorised companies are those licensed by regulators like VARA, DMCC, DIFC, or ADGM. These include licensed exchanges, trading platforms, custody providers, and advisory firms.
8. Is crypto tax-free in Dubai?
Yes, individuals do not pay personal income tax on crypto earnings. However, registered companies may be subject to the UAE’s 9% corporate tax, depending on their profits and jurisdiction.
9. Can foreigners start a crypto business in Dubai?
Yes, both UAE nationals and foreigners can apply for a crypto license. Many free zones and VARA allow 100% foreign ownership.
10. How long does it take to get a crypto license in Dubai?
Getting a crypto license in Dubai can take approximately 4 to 8 months, depending on the regulator, business activity, and how quickly documents and compliance requirements are met.
Disclaimer: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
