Dubai is quickly becoming one of the top places in the world for crypto businesses. With strong government support and clear rules around digital assets, the city has created a safe and welcoming space for blockchain companies to grow. Authorities like the Virtual Assets Regulatory Authority (VARA) in Dubai and the Abu Dhabi Global Market (ADGM) are leading the way by offering proper licenses and regulations for crypto-related activities.
For UK investors and crypto entrepreneurs, getting a crypto license in Dubai, UAE can be a smart move. It helps build trust with customers, makes banking and legal processes easier, and comes with major tax benefits, like no corporate or personal income tax. If you’re planning to start a crypto business in the Middle East, Dubai is the perfect place to begin.
Why Set Up a Crypto Business in Dubai, UAE?
Dubai has quickly positioned itself as one of the most attractive places in the world to launch a crypto business, and for good reason. Here’s why:
1. Government Support & Clear Regulations
Dubai was one of the first cities globally to create a dedicated crypto regulator, VARA (Virtual Assets Regulatory Authority), which shows how seriously the government is taking this space. This means businesses operate in a safe, transparent, and well-regulated environment.
2. Tax Benefits
Companies in Dubai enjoy 0% corporate and personal income tax, and there are no restrictions on capital repatriation. This is especially appealing to international investors, including those from the UK.
3. Full Foreign Ownership
Unlike many other countries, Dubai allows 100% foreign ownership of crypto and tech companies in many zones, giving business owners complete control.
4. Business-Friendly Ecosystem
Dubai offers modern infrastructure, a wide range of licensing options, easy banking, and support through free zones like DMCC, IFZA, and DIFC.
5. Legitimate International Appeal
Having a VARA or ADGM license boosts your business credibility. If you’re talking to global investors, banks, or partners, being licensed in Dubai signals that your business meets international compliance standards (AML/KYC, cybersecurity, etc.).
6. Access to Banking (Which Is Still a Problem Elsewhere)
Many crypto startups struggle to open bank accounts due to regulatory uncertainty. In Dubai, regulated crypto companies can get access to banking more easily, especially if they’re licensed through VARA, DMCC, or ADGM.
Types of Crypto Licenses in Dubai
Before starting your crypto business in Dubai, it’s important to understand the different types of licenses available based on the activity you plan to carry out.
1. VARA (Dubai Virtual Assets Regulatory Authority)
Dubai’s dedicated crypto regulator offers several Virtual Asset Service Provider (VASP) licenses tailored to the type of service you intend to offer:
- Advisory Services: Crypto investment advice or research.
- Broker‑Dealer Services: Buying/selling crypto on behalf of clients.
- Custody Services: Safeguarding client digital assets and keys.
- Exchange Services: Operating an order-book or P2P trading platform.
- Lending/Borrowing Services: Crypto-backed lending or borrowing.
- Asset Management: Managing crypto funds and investments.
- Transfer and Settlement: Enabling transfers/settlements of virtual assets.
2. DMCC (Dubai Multi Commodities Centre) Free Zone
DMCC is a premier gateway for crypto setups in Dubai, regulated jointly with the UAE Securities & Commodities Authority (SCA). There are two main crypto-related licenses:
- Crypto Trading License (Proprietary Trading): For buying/selling crypto commodities on your own account.
- Distributed Ledger Technology (DLT) License: For blockchain-based services like dApps, metaverse platforms, or database services.
DMCC also supports dual licensing, letting free zone firms expand to UAE mainland under a DED branch while keeping full ownership rights.
3. Other Free Zones
Multiple free zones in Dubai and the UAE offer crypto or blockchain-related trade licenses, like:
- IFZA, DWTC (Dubai World Trade Centre): Offer permits for crypto exchanges, wallets, and software development.
- DIFC (through DFSA): Offers frameworks for financial token regimes, custody, and asset management.
- DAFZA (Dubai Airport Free Zone): In partnership with SCA for trading, issuance, and asset management.
Key Regulatory Authorities for Crypto Licensing in Dubai
Several key authorities regulate crypto licensing in Dubai, each with its own rules and requirements depending on where you set up your business.
1. VARA – Virtual Assets Regulatory Authority (Dubai)
Established in 2022, VARA is Dubai’s main crypto regulator (outside DIFC). It oversees exchanges, custody, trading, advisory, and token issuance. VARA enforces strict AML, cybersecurity, and risk management rules and has licensed major firms like Binance and Crypto.com.
2. ADGM FSRA – Abu Dhabi Global Market Financial Services Regulatory Authority
ADGM, a financial free zone in Abu Dhabi, offers full crypto licensing frameworks including exchanges, custody, asset management, and stablecoin issuance. It enforces strong AML, consumer protection, and tech governance standards.
3. DFSA – Dubai Financial Services Authority (DIFC)
DFSA regulates virtual assets within DIFC. It introduced investment and crypto token regimes for recognized tokens (like BTC, ETH). Licensed firms can offer trading, custody, and advisory services under its framework.
4. SCA – Securities & Commodities Authority (Mainland UAE & Free Zones)
SCA regulates crypto activities on the mainland UAE outside Dubai’s free zones. It issues rules for crypto exchanges, custody, and token offerings, working with free zones like DMCC to ensure AML and investor protections.
What is the Eligibility Criteria for a Crypto License in Dubai?
To get a crypto license in UAE, you must meet certain conditions set by authorities like VARA, ADGM, or DMCC. Here’s a quick look at the main requirements:
- Registered Company: Depending on your chosen license, you need to set up a UAE-registered company – mainland or free zone.
- Relevant Business Activity: Your company’s operations must match the license type (e.g., exchange, advisory, custody). A solid business plan is often required.
- Capital Requirements: Minimum capital starts from around AED 100,000 and varies by activity and zone.
- Clean Records: All shareholders and directors must provide ID, proof of address, a CV, and a police clearance certificate.
- Compliance Ready: You must have AML/KYC policies in place. Some licenses may also require a compliance officer.
- Office Space: A local office in the licensing zone is needed—flexi-desks are accepted in some free zones.
What are the Documents Required to Get a Crypto License in Dubai?
When applying for a crypto license in Dubai, you’ll need to submit a set of legal, personal, and business-related documents, such as:
- Passport copies of all shareholders and directors
- Recent passport-sized photographs
- Emirates ID and visa copy (if already a UAE resident)
- Trade name reservation certificate
- Initial approval from the licensing authority
- Memorandum of Association (MoA)
- Lease agreement for office space or flexi-desk
- Proof of minimum share capital (bank letter or account statement)
- AML/KYC policies and internal compliance procedures
How to Get a Crypto License in Dubai, UAE?
To get a crypto license in UAE, you’ll need to follow a structured process that includes company setup, regulatory approvals, and compliance checks. Here’s a step-by-step process:
1. Define Your Business Model & Jurisdiction
Decide what you’ll do – exchange, wallet service, asset management, token issuance, etc., and select the right licence authority (e.g., VARA in Dubai, DMCC/IFZA free zones, ADGM, or DIFC).
2. Company Formation & Name Approval
Register your company in the chosen jurisdiction (mainland or free zone), ensure 100% foreign ownership is possible, and reserve your trade name.
3. Initial Approval Application
Submit the initial approval (Initial Disclosure Questionnaire, where applicable) and pay initial fees (~50% of the total). Authorities review your business model and key personnel.
4. Office Space and Infrastructure Setup
Secure a physical or flexi-desk office space as required by the jurisdiction. Free Zones often offer co-working spaces or dedicated offices.
5. Receive In-Principle Approval
Once your application and documents are approved, you’ll receive an in-principle approval allowing you to proceed to the final setup stage.
6. Complete Incorporation and Licensing Formalities
Pay the required fees, sign the incorporation documents, and obtain your crypto license in Dubai. You may also need to open a corporate bank account, which can take some time due to regulatory checks.
7. Comply with Ongoing Regulatory Requirements
After receiving your license, ensure continuous compliance with:
- AML/CFT guidelines
- Transaction monitoring
- Annual audits
- Reporting obligations
What is the Cost of Getting a Crypto License in Dubai?
The cost of a crypto license in Dubai depends on the business activity, chosen jurisdiction, and scale of operations.
Free zones like IFZA and DMCC offer more affordable crypto licenses. IFZA starts around AED 7,000–15,000/year. DMCC crypto licenses start from AED 20,000 and can go above AED 45,000, depending on the business model and office requirements. DWTC and DAFZA also offer licenses for around AED 25,000–40,000/year.
VARA licenses are for more advanced crypto businesses like exchanges, custodians, or asset managers. Application fees start from AED 40,000 to AED 100,000.
Besides the license, consider additional expenses such as PRO services, bank account setup, compliance, tech audits, and visa processing. These can significantly add to your total cost.
How Shuraa UK Can Help You Get a Crypto License
Getting a crypto license in Dubai might seem complex, but with the right help, it becomes a straightforward journey. Getting your crypto license opens doors to exciting opportunities in a booming market.
At Shuraa UK, we don’t just help you get the license; we guide you through every step, making sure your business is built on a strong foundation. Doesn’t matter if you’re a new startup, an investor, or a fintech company, Shuraa UK has packages designed just for you.
Get in touch today and let’s get started together.
