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.