Dubai has positioned itself as a global leader in the regulation of digital assets. Through the Virtual Assets Regulatory Authority (VARA), the Emirate has established a transparent and robust framework for companies operating in the crypto and Web3 ecosystem.
For organizations aiming to offer virtual asset services in or from Dubai, securing a VARA license is now essential. Below, we’ll break down the step-by-step process to obtain a VARA license, along with expert insights to help you prepare effectively.
Understand VARA’s Regulatory Framework
Before starting the application, it’s important to understand VARA’s scope. Established in 2022 under the Dubai Virtual Assets Regulation Law, VARA oversees activities involving digital tokens, virtual asset trading, and blockchain-based financial services.
The framework applies to any business offering:
Exchange or brokerage of virtual assets
Custody and wallet services
DeFi and staking operations
NFT trading platforms
Web3 consulting or digital asset advisory
VARA’s goal is to ensure that companies operate transparently, securely, and in compliance with international best practices for cybersecurity and risk management.
Prepare the Pre-Application Documents
The initial stage involves gathering essential documentation for VARA’s evaluation.
Common requirements include:
Company registration documents and ownership structure
Detailed business plan with revenue model
Information on directors and beneficial owners
Cybersecurity and data protection policies
AML/CFT (Anti-Money Laundering / Counter Financing of Terrorism) procedures
Proof of capital adequacy
This documentation gives VARA a clear understanding of your operational model, governance standards, and risk mitigation strategies.
Conduct a VARA Readiness Assessment
Before submitting your application, it’s highly recommended to perform a VARA readiness audit.
This assessment identifies compliance gaps across areas such as:
Data security and encryption standards
Access control and identity management
Incident response planning
Risk governance and internal controls
A vCISO (Virtual Chief Information Security Officer) can lead this process, ensuring that your cybersecurity posture aligns with VARA’s licensing criteria.
At Femto Security, our vCISO experts specialize in conducting VARA compliance readiness assessments, helping clients reduce delays and increase approval success rates.
Submit the Initial Application to VARA
Once your documentation and cybersecurity controls are in place, you can proceed with the initial application through VARA’s official portal.
VARA will review your submission to verify:
Business model and financial soundness
Management structure and governance
Security and technical infrastructure
AML and risk compliance measures
If the authority finds the submission satisfactory, you’ll receive an In-Principle Approval (IPA), allowing you to move forward with final licensing steps.
Undergo Technical and Cybersecurity Evaluation
After receiving the IPA, your business must pass a technical evaluation to ensure your systems meet VARA’s operational and cybersecurity requirements.
This phase typically involves:
Penetration testing and vulnerability scans
Policy documentation review (access, data protection, encryption)
Employee training and awareness checks
Third-party risk management review
VARA emphasizes cybersecurity as a core part of its licensing process ensuring only trusted, secure operators are allowed to enter Dubai’s regulated crypto ecosystem.
Pay Licensing Fees and Finalize Approval
Once the evaluation is complete, and all requirements are met, VARA will issue a final license after the payment of applicable fees.
The total cost varies based on your business model and services offered. Typical fees range between AED 50,000 and AED 150,000, depending on the category of activity (exchange, custody, or advisory).
Upon approval, your business is officially authorized to provide virtual asset services in or from Dubai.
Maintain Ongoing VARA Compliance
Obtaining the license is just the beginning. VARA-licensed entities must maintain ongoing compliance through:
Regular cybersecurity audits
Continuous risk monitoring
Annual license renewals
Data protection and incident response updates
Having a vCISO partner ensures your business remains compliant with evolving VARA standards, minimizing regulatory risks and penalties.
How Femto Security Supports VARA Licensing
At Femto Security, we help organizations navigate the entire VARA licensing journey from pre-application readiness to post-approval compliance management.
Our team of cybersecurity and regulatory experts provides:
vCISO services tailored for VARA compliance
Risk assessments and policy implementation
Dark web monitoring and threat intelligence
VARA audit preparation and documentation support
Through our CyberSec365 platform, we deliver continuous visibility, proactive risk management, and enterprise-grade protection for both Web2 and Web3 infrastructures.
Final Thoughts
VARA Licensing is more than a legal formality it’s a signal of maturity, security, and trust in the global crypto ecosystem. As Dubai cements its position as a leader in virtual asset regulation, licensed firms will hold a significant advantage in building credibility and long-term success.
Partnering with experts who understand both cybersecurity and compliance ensures you’re ready for the journey.
