Jurisdictions/UAE / Dubai/VA Broker-Dealer License
馃嚘馃嚜UAE / DubaiVirtual Assets Regulatory Authority (VARA)

VA Broker-Dealer License

License for facilitating buy and sell transactions on behalf of clients with best execution obligations and segregation.

VARA Regulations 2023, VA Broker-Dealer Services Rulebook, Dubai Law No. 4 of 2022

Capital Required

AED 400,000-1,500,000 plus 1.2x monthly expenses

Timeline

4-8 months

Fees

AED 100,000 application + AED 200,000 annual supervision

Regulatory Body

Virtual Assets Regulatory Authority (VARA)

Legislative Framework

Dubai Law No. 4 of 2022, Virtual Assets and Related Activities Regulations 2023, VARA Rulebooks (13 total: 5 Compulsory, 8 Activity-Specific)

Last updated: August 2025

Key Requirements

1

Base capital of AED 400,000-1,500,000 depending on custody integration plus 1.2x monthly operational expenses

2

Best execution obligation policies with pricing comparisons to benchmarks for all client trades

3

Client asset segregation with client VA held separately from broker proprietary holdings per VARA

4

Comprehensive conflicts-of-interest management covering principal trading and tied distributor arrangements

5

Compliance Officer and Risk Officer with VARA-approved competency certifications and regulatory experience

6

Professional indemnity and errors and omissions insurance of AED 500,000-1,000,000 depending on client size

7

Technology platform meeting VARA standards for order routing, execution recording, and audit trails

8

Clear suitability and appropriateness procedures for client onboarding with documented risk assessments

Application Process

1

Submit VA Broker-Dealer license application with description of trading model, client segments, and execution

2

Provide organizational structure with management CVs and fit-and-proper documentation for officers

3

Include compliance manual with best execution policies, conflicts management, and suitability procedures

4

Submit insurance certificates and capital adequacy evidence with third-party verification

5

Pre-application meetings with VARA to discuss execution quality standards and client protection

6

Final submission and VARA approval following governance and risk management framework review

Expected Total Timeline

4-8 months

Ongoing Obligations

After obtaining your VA Broker-Dealer License, these are the continuing compliance requirements you must maintain.

Semi-annual execution quality reports analyzing spreads, slippage, and pricing versus market benchmarks

Quarterly capital adequacy certifications and annual independent audits by VARA-approved auditors

Monthly client complaints reporting and resolution tracking with material complaint escalation to VARA

Annual fit-and-proper assessments for officers with mandatory updates to VARA within 10 days

Quarterly review of conflicts-of-interest policies with certification of VARA requirement adherence

Maintain insurance coverage continuously and provide annual renewal certificates to VARA

Cost Summary

Capital Requirement

AED 400,000-1,500,000 plus 1.2x monthly expenses

Application & Licensing Fees

AED 100,000 application + AED 200,000 annual supervision

Jurisdiction Setup Cost

$50,000-$100,000

Annual: $40,000-$120,000

Need help with VA Broker-Dealer License?

Our team manages the full UAE / Dubai licensing process -from application preparation through post-approval implementation.

The information provided on this website is for general informational purposes only and does not constitute legal, financial, or tax advice. No attorney-client relationship is formed by use of this site. LegalWrapper.io is a product of Enterslice. Content on this site may not reflect the most current legal or regulatory developments. Consult with a qualified legal professional before making any structuring, licensing, or compliance decisions. Regulatory requirements and outcomes vary by jurisdiction and are subject to change. Prior engagements do not guarantee specific regulatory approvals or timelines.