Disclaimer: the term "cryptolicense" in this text refers to the authorization to operate as a Virtual Asset Service Provider (VASP). The use of the term "cryptolicense" is intended solely to simplify the perception of the text by clients and website visitors.

In recent years, Dubai has transformed into a hub for companies specializing in cryptocurrency and blockchain. This important financial center in the Middle East not only offers a wide range of services, such as banking institutions, stock exchanges, investment funds, and financial services, but also actively invests in the development of innovative technologies, with a particular focus on blockchain.

Obtaining a cryptolicense in Dubai opens the door to many advantages that this dynamically developing market offers. For example, you can take advantage of a favorable tax system, the absence of restrictions on capital movement, as well as access to advanced technological infrastructure. In addition, Dubai offers a stable political and economic environment, making it an attractive location for long-term investments.

Don't miss the opportunity to join us and start your innovative business journey, taking advantage of all the benefits that the UAE market offers. Get a cryptolicense and become part of a thriving community of crypto enthusiasts and professionals in Dubai.

All types of regulated activities in the field of virtual assets are clearly defined by VARA

Key Numbers about Cryptolicense in Dubai

12 weeks

average term of obtaining a cryptolicense

€23,500

minimal share capital starts from

€23,500

the average amount application fee for cryptolicense

9%

corporate income tax (CIT) rate

0%

personal income tax (PIT) rate

5%

value added tax (VAT) rate

Legal Opinion about Cryptolicense in Dubai

Ganna Voievodina

Manimama

CEO

"As the head of Manimama OU, I am convinced that obtaining a cryptolicense in Dubai is a strategic decision that opens up new horizons for business. Unlike other jurisdictions with high barriers to entry, Dubai is positioning itself as an international center for innovation, especially in the field of blockchain and cryptocurrencies. Contact our team for advice and to start your business in Dubai”.

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Types of Activities with a License in Dubai

Advisory services

a cryptolicense allows you to provide advice to clients on the purchase or sale of cryptocurrencies, either upon request or at the initiative of the consultant.

Custodial services

a cryptolicense permits the secure storage of virtual assets of other organizations and the execution of transactions solely based on their instructions.

Lending and borrowing services

a cryptolicense allows you to enter into agreements that involve the transfer of crypto assets from lenders to borrowers with an obligation to return them within a specified timeframe.

Virtual asset transfer and settlement services

a cryptolicense permits the transfer of cryptocurrencies between legal entities or virtual wallets.

Broker-dealer services

a cryptolicense allows you to organize transactions for the purchase and sale of cryptocurrencies between parties, accept orders for virtual assets, and make payments for them in fiat currency or other cryptocurrencies.

Exchange services

a cryptolicense permits the exchange, trade, or conversion between cryptocurrencies and fiat currency, between different cryptocurrencies, as well as the coordination of exchange orders between buyers and sellers.

Virtual asset management and investment services

a cryptolicense allows you to represent a legal entity as an agent or trustee for the management, administration, or disposal of its cryptocurrency assets.

Benefits of Obtaining a Cryptolicense in Dubai

Professional consultation and preparation:

Consultation on legal requirements and preparation of necessary documents.
Streamlined process for document submission for company registration and cryptocurrency licensing.

Compliance with regulatory requirements:

Thorough company verification to meet regulatory standards.
Risk management systems and AML procedures to comply with all requirements.

Efficient application processing:

Quick submission of applications for cryptocurrency licensing and company registration.
Minimal bureaucratic procedures for fast processing.

High level of security:

Use of modern technologies to protect against cyberattacks and financial risks.
Customer verification systems (KYC) and AML procedures to ensure security and mitigate risks.

Flexibility and transparency:

Adaptability to changes in legislation and regulatory requirements.
Transparency in business processes and compliance with all rules and standards.

Entrepreneurial support:

Creation of favorable conditions for the development of cryptocurrency businesses.
Support for innovation and stimulation of investments in this sector of the economy.

Our Services

Popular package

Step 1

Pre-licensing process

General consulting regarding the cryptoregulation in Dubai
Shareholders and group companies due diligence
Preparation of (a) business plan for 3 years (b) details of the company’s beneficial owners and senior management (CVs and other documents)
Local company formation in DMCC free-zone special for VARA licensing

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Step 2

Obtaining initial approval

Preparing and submitting an Initial Disclosure Questionnaire (IDQ) to Dubai Economy and Tourism (DET)
Submitting all required documentation to DET
Receiving an initial approval
Completing operational setup (oﬃce space rental and registration, employee on-boarding, etc.)

* only for “custody services / exchange“

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Step 3

Licensing

Preparation and submission documentation legal and financial documents (non-exhaustive list) to VARA: Description of the Management Structure; Compliance documentation (AML/KYC/KYT etc.); Financial documentation and forecasts; Operational Risk Procedures
Filling up an application for a VASP license and submitting it to VARA
Processing the response and decision of the VARA

* only for “custody services / exchange“

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Our Experts in this Area

Ganna Voievodina

CEO, co-founder

Artem Shapoval

Senior Lawyer

Step by Step Description

Step 1. Preparation
Preliminary project analysis and preparation of a power of attorney for client certification, consultation on Dubai law, collection of documents from the client to start company registration and obtain a license
Step 2. Initial approval application
Preparation of all necessary documents and submission of the Initial Disclosure Questionnaire (IDQ) to the Dubai Department of Economy and Tourism (DET) or the relevant free zone authority (FZA)
Step 3. Cryptolicense application
Creation of an individual set of documents, including organizational structure, business plan, AML/CFT procedures, risk assessment policy, KYC configuration with the necessary levels of verification for individuals, legal entities, merchants, etc
Step 4. Obtaining a license
Obtaining a cryptolicense (VASP authorization) and entering the company in the VARA register of cryptocurrency companies

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Understanding Requirements in Dubai

VARA has developed special rules for different types of virtual asset service providers

The Virtual Asset Regulatory Authority (VARA) plays a key role in shaping and developing the cryptocurrency market in Dubai. Its main task is to create a reliable and transparent regulatory environment that promotes innovation, protects investors, and ensures market stability.

VARA has developed a comprehensive regulatory framework that covers all aspects of virtual asset-related activities. This framework includes licensing rules, requirements for compliance with AML/CFT measures, cybersecurity standards, consumer protection rules, and more.

One of the key features of VARA's approach is its flexibility and adaptability. It understands that the virtual asset market is constantly evolving, and therefore strives to create rules that not only meet current realities but also take into account future trends.

For example, VARA has developed special rules for different types of virtual asset service providers, such as exchanges, custodians, token issuers, and others. These rules take into account the specifics of each type of VASP's activities and establish appropriate requirements for their operations.

In addition, VARA actively cooperates with market participants, experts, and other regulators to ensure that its rules are effective and relevant. It also conducts public consultations and takes feedback into account when developing new rules.

Obtaining a cryptolicense from VARA is a prerequisite for any company wishing to legally conduct virtual asset-related activities in Dubai. This process involves a thorough review of the company for compliance with all VARA requirements, including financial stability, the availability of qualified personnel, reliable risk management systems, and much more.

Thus, this authority plays an important role in the development of the cryptocurrency market in Dubai, creating favorable conditions for innovation and investment, while ensuring a high level of investor protection and market stability.

Requirements for Obtaining a Cryptolicense in Dubai

A cryptolicense in Dubai requires the applicant to have a minimum authorized capital, the amount of which depends on the proposed type of activity

To obtain VARA approval and, accordingly, a cryptolicense in Dubai, the applicant must meet several requirements set by the regulator. These requirements are aimed at ensuring the reliability, security, and transparency of the activities of companies working with cryptocurrencies.

Management structure: the company must have a clear and transparent management structure, including at least one director and from two to fifty shareholders. This requirement is aimed at ensuring responsibility and accountability in the management of the company.

Management qualification: the senior management team must consist of qualified professionals with experience in the financial or information technology sector. Among them, two "responsible persons" must be appointed who will be personally responsible for the company's compliance with all regulatory requirements to get a cryptolicense. These individuals must be UAE residents or UAE passport holders, which guarantees their commitment to local laws and the regulatory environment.

Physical presence: the company must have a physical presence in Dubai, i.e., an office or representative office in the emirate. This requirement is related to the need to ensure effective supervision of the company's activities by VARA and compliance with local laws when conducting activities under a cryptolicense.

Compliance with regulatory requirements: the applicant must strictly comply with all regulatory requirements established by VARA to obtain and maintain a cryptolicense. This includes compliance with the AML/CFT policy, which is aimed at preventing the use of cryptocurrencies for illegal purposes. The company must also comply with anti-bribery and corruption regulations, which is an important condition for maintaining a fair and transparent business environment.

Minimum authorized capital: the company must have a minimum authorized capital, which is determined depending on the type of activity specified in the cryptolicense. For example, for companies engaged in the exchange of cryptocurrencies, the requirements for authorized capital will be higher than for companies providing consulting services. This requirement is aimed at ensuring the financial stability of the company and its ability to fulfill its obligations to customers.

Compliance with all these requirements is an integral part of the process of obtaining a cryptolicense in Dubai. VARA carefully checks each application to make sure that the company meets all established standards. This allows for the creation of a reliable and secure environment for the development of the cryptocurrency market in Dubai and protects the interests of investors and consumers.

Fees outlined below apply to all license applications and VASPs
Virtual asset activity	License application fee (for one regulated virtual asset activity only)	License extension fee (for each additional regulated virtual asset activity)	Annual supervision fee (for each regulated virtual asset activity)
Advisory services	AED 40,000 (~EUR 9,362)	50% of lower license application fee(s)	AED 80,000 (~EUR 18,733)
Broker-dealer services	AED 100,000 (~EUR 23,416)		AED 200,000 (~EUR 46,833)
Custody services	AED 100,000 (~EUR 23,416)		AED 200,000 (~EUR 46,833)
Exchange services	AED 100,000 (~EUR 23,416)		AED 200,000 (~EUR 46,833)
Lending and borrowing services	AED 100,000 (~EUR 23,416)	50% of lower license application fee(s)	AED 200,000 (~EUR 46,833)
Virtual asset management and investment services	AED 100,000 (~EUR 23,416)		AED 200,000 (~EUR 46,833)
Virtual asset transfer and settlement services	AED 40,000 (~EUR 9,362)		AED 80,000 (~EUR 18,733)

Taxes in Dubai

The tax system in Dubai is characterized by the absence of personal income tax and a preferential corporate tax regime

Dubai attracts entrepreneurs from all over the world with its favorable tax system. There is no personal income tax or capital gains tax, making it an attractive place to live and do business.

There are two main taxes in Dubai: corporate tax and value-added tax.

Corporate tax

The standard corporate tax rate is 9%. However, on the mainland of Dubai, it is applied only if the company's annual income exceeds 375,000 UAE dirhams (approximately €88,000).
There is a preferential period until December 31, 2026, during which companies whose income does not exceed 3,000,000 UAE dirhams (approximately €700,000) for the reporting and previous tax periods are exempt from paying corporate tax.

Value added tax (VAT)

The standard VAT rate is 5%.
Registration of a company as a VAT payer is mandatory if its taxable supplies and imports exceed 375,000 UAE dirhams per year (approximately €88,000).
Companies whose turnover has reached 187,500 UAE dirhams (approximately €44,000) can register as a VAT payer voluntarily.

In conclusion, Dubai's tax system offers favorable conditions for businesses, especially for companies with small turnovers that can take advantage of corporate tax benefits. At the same time, it is important to take into account the requirements for registration as a VAT payer and comply with all tax obligations.

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Frequently Asked Questions

What is a cryptolicense in Dubai, and why is it needed?

A cryptolicense in Dubai is an official permit issued by the Virtual Asset Regulatory Authority (VARA) that legalizes the activities of companies related to cryptocurrencies and other digital assets. Without this license, conducting such activities in the emirate is illegal.
What types of activities does a cryptolicense in Dubai cover?

The cryptolicense in Dubai grants the right to a wide range of operations with virtual assets. This includes cryptocurrency exchange (buying and selling), custodial services (asset storage), brokerage services (intermediation in transactions), asset management (investment and trading), consulting on cryptocurrency issues, and other related services.
Who can apply for a cryptolicense in Dubai?

Both local and foreign companies registered in Dubai or one of its free economic zones can obtain a cryptolicense in Dubai. However, to obtain a license, a company must meet several strict requirements set by VARA.
What are the requirements for companies wishing to obtain a cryptolicense?

VARA has high requirements for companies wishing to obtain a cryptolicense. This includes having a clear organizational structure with at least one director and 2-50 shareholders, qualified management with experience in the financial or IT field, a physical presence in Dubai (office or representative office), compliance with strict AML/CFT rules, and a minimum authorized capital, the amount of which depends on the type of activity.
How long does the process of obtaining a cryptolicense in Dubai take?

The process of obtaining a cryptolicense in Dubai can be quite lengthy and complex. On average, it takes from several weeks to several months, depending on the type of license, the complexity of the company's business model, and its readiness to fulfill all VARA requirements.
What are the benefits of a cryptolicense in Dubai for businesses?

A cryptolicense in Dubai opens up many opportunities for businesses. It provides legal status, which increases the trust of customers and investors. Companies with a cryptolicense gain access to Dubai's developed financial and technological infrastructure, as well as a wide range of potential clients and partners. In addition, the license allows you to attract investment and expand your activities to the international level.
What documents need to be submitted to obtain a cryptolicense?

To get a cryptolicense in Dubai, you must provide an extensive package of documents. This includes a business plan with a detailed description of the company's activities, financial statements, information about management and employees, a description of AML/CFT procedures, confirmation of the presence of a physical office in Dubai, and other documents confirming the company's compliance with VARA requirements.
What are the risks associated with operating under a cryptolicense in Dubai?

Despite all the advantages, operating under a cryptolicense in Dubai is associated with certain risks. This includes the volatility of the cryptocurrency market, cyber threats, and possible changes in the regulatory environment. However, compliance with all VARA requirements and the use of modern security technologies can minimize these risks.
How does VARA control companies that have received a cryptolicense?

VARA exercises strict supervision over the activities of companies that have received a cryptolicense. This includes regular inspections, analysis of reporting, transaction monitoring, and other measures aimed at ensuring that companies comply with all regulatory requirements.
What happens if a company violates the terms of a cryptolicense?

Violation of the terms of a cryptolicense can lead to serious consequences for the company. VARA has the right to impose fines, suspend, or even revoke the license in case of violations. In some cases, violations can lead to criminal prosecution.
Is it possible to appeal the decision of VARA in case of refusal to issue or revoke a cryptolicense?

Yes, companies have the right to appeal VARA's decisions in court. However, this is a complex and lengthy process that requires legal expertise.
What are the prospects for the development of the cryptocurrency market in Dubai?

Dubai is actively striving to become a global center for the cryptocurrency industry. The government of the emirate is creating a favorable regulatory environment and investing in infrastructure development to support blockchain technologies and cryptocurrencies. This opens up broad prospects for the growth and development of the cryptocurrency market in Dubai.

Semen Kaploushenko

KUNA, CBDO

"The level of service from Manimama OU was exceptional, I greatly appreciate their proficiency in navigating cryptocurrency regulations in ADGM & Dubai."