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

VA Exchange License

License for operating order-book exchange platforms for trading virtual assets with real-time matching and settlement capabilities.

VARA Regulations 2023, VA Exchange Services Rulebook, Dubai Law No. 4 of 2022

Capital Required

AED 800,000-1,500,000 plus 1.2x monthly expenses

Timeline

6-10 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 800,000-1,500,000 depending on custody integration plus 1.2x monthly operational expenses

2

Real-time order matching and settlement with finality within 24 hours per VARA rulebook standards

3

Comprehensive market surveillance detecting market abuse, unusual patterns, and prohibited activity

4

Segregated customer fund accounts with third-party custodian or own custody license meeting VARA standards

5

Qualified Senior Management Team including Chief Compliance Officer and Chief Risk Officer approved by VARA

6

Professional indemnity insurance of minimum AED 1,000,000 covering trading platform liabilities

7

Robust cybersecurity framework with annual penetration testing and incident response documented per VARA

8

Clear fee schedule and service terms with mandatory dispute resolution accessible to retail traders

Application Process

1

Prepare comprehensive VA Exchange license application with business plan and technology architecture

2

Submit organizational structure, management CVs, and VARA fit-and-proper assessments for board

3

Provide compliance manuals, AML/KYC procedures, market conduct rules, and conflicts-of-interest policies

4

Undergo VARA pre-application consultation to discuss platform design and regulatory expectations

5

Submit final application with capital adequacy, insurance coverage, and operational readiness evidence

6

VARA review and approval following evaluation of market surveillance and governance frameworks

Expected Total Timeline

6-10 months

Ongoing Obligations

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

Quarterly capital adequacy reporting and annual independent audit certified by VARA-approved auditors

Daily market surveillance reports including suspicious activity, margin calls, and circuit breaker triggers weekly

Monthly customer fund reconciliation with independent custodian verification statements

Annual fit-and-proper assessments for Senior Management Team with notifications to VARA within 5 days

Quarterly compliance certifications covering AML/KYC, market conduct rules, and conflicts management

Maintain professional indemnity insurance continuously and notify VARA of any coverage changes

Cost Summary

Capital Requirement

AED 800,000-1,500,000 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 Exchange License?

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

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