Activities · Crypto and virtual asset businesses (VARA, ADGM, RAK DAO)
Set up a Crypto and virtual asset businesses (VARA, ADGM, RAK DAO) company in the UAE.
To run a crypto or virtual asset business in the UAE, the licensing path depends on the activities and location. In Dubai, any entity conducting regulated virtual asset activities (e.g., exchange, custody, broker-dealer) must obtain a VASP licence from VARA, whether on the mainland or in a free zone (excluding DIFC). In Abu Dhabi, the ADGM free zone offers a similar regulatory regime under the FSRA. For non‑custodial activities (e.g., protocol development, DAO governance), a trade licence from a free zone like RAK DAO or DMCC may suffice, but these do not authorise handling client assets. The process is two‑stage: first an Approval to Incorporate (ATI), then the full licence. Timelines are 6 to 12 months, and total costs (including professional fees) can range from amount not yet confirmed to amount not yet confirmed+, though official fee schedules are not publicly detailed in the provided sources.
Virtual Asset Service Provider (VASP) Licence from VARA (Dubai) or a Financial Services Permission from FSRA (ADGM) for regulated activities; a free‑zone trade licence alone is insufficient for custody, exchange, or client‑asset handling.
If you intend to conduct regulated virtual asset activities on the UAE mainland outside Dubai, you must obtain a licence from the Securities and Commodities Authority (CMA). In Dubai, VARA covers both mainland and free zone territories (excluding DIFC), so a separate mainland licence is not required.
Zones that fit the activity
Names as the researchers wrote them, with the catalogue entry where the zone publishes one. A price is a package price and may cover a different package than another zone.
| Zone | Why | Catalogue entry | Package price | Source |
|---|---|---|---|---|
| VARA | The only regulator in Dubai authorised to license virtual asset service providers. Covers exchange, custody, broker‑dealer, lending, and other VA activities. Required for any client‑facing regulated activity in Dubai. | Virtual Asset Service Provider Licence (VASP), specific activities listed on VARA website (e.g., exchange, custody, broker‑dealer) | not published | source |
| ADGM | Financial free zone with its own regulator (FSRA) offering a principles‑based regime. Suitable for institutional players, funds, and OTC desks. English common law framework. | not published | not published | source |
| RAK DAO | Free zone for non‑custodial web3 entities (DAOs, protocol teams, open‑source projects). Fast setup (2 to 6 weeks) and low cost, but does not authorise any regulated virtual‑asset activity. Often used in a dual‑entity structure with a VARA or ADGM licensed entity. | not published | not published | source |
Approvals outside the free zone
Financial Services Regulatory Authority (FSRA) of ADGM
VAT: The transfer, conversion, custody, and management of virtual assets are exempt from VAT. The exemption for transfers and conversions applies retroactively from 1 January 2018; custody and management exemption applies from 15 November 2024. Cryptocurrency mining remains subject to VAT. Corporate tax: 9% on taxable profits exceeding amount not yet confirmed; profits below that threshold are taxed at 0%. Free zone entities may qualify for exemptions under certain conditions.
There are no regulatory restrictions on the banking or payment partners that crypto‑asset firms may use. However, obtaining general banking and payment services can be challenging in practice.
Mistakes that cost a resubmission
- Assuming a free‑zone trade licence alone permits handling client virtual assets, only a VARA or ADGM licence authorises custody, exchange, or broker‑dealer activities. source
- Not understanding that RAK DAO does not authorise any regulated virtual‑asset activity; it is only suitable for non‑custodial operations. source
- Underestimating the timeline (6 to 12 months) and total cost (amount not yet confirmed+ including professional fees) for a full VARA or ADGM licence. source
- Overlooking the two‑stage process: an Approval to Incorporate (ATI) must be obtained before applying for the full VASP licence, and no client operations can begin until the final licence is issued. source
Questions founders ask
If you do not custody, exchange, lend, or manage client virtual assets, you likely do not need a VARA licence. A trade licence from a free zone like DMCC or RAK DAO may be sufficient. However, if any part of your activity touches client funds or tokens, you will need a regulatory licence.
No. RAK DAO does not authorise regulated virtual‑asset activities. To run an exchange, you must obtain a VASP licence from VARA (Dubai) or a Financial Services Permission from FSRA (ADGM).
Typical timelines are 6 to 12 months, including the initial Approval to Incorporate stage and the full licence application.
What the research does not settle
- Official VARA licence application fees and first‑year supervision fees are not published in the provided sources; only agent estimates (amount not yet confirmed) are available.
- ADGM FSRA licence fees and specific activity names are not detailed in the provided sources.
- RAK DAO trade licence costs are not specified in the provided sources.
- CMA mainland licence costs and exact requirements are not covered in the provided sources beyond the capital requirements mentioned in the Chambers guide.