What is VARA
VARA (Virtual Assets Regulatory Authority) regulates virtual assets in Dubai, with the exception of the DIFC financial centre. The regulator defines the types of services that require a licence and the requirements for them.
Who may need a licence
- Exchanges and brokerage services
- Custody and payment services involving virtual assets
- Advisory and management
- Other services on the regulator’s list
The exact list and requirements must be checked against the current VARA rules.
What is usually required
- A company and a registered address in Dubai
- A description of the business model and products
- Compliance and AML policies
- Confirmation of the sources of capital and the ownership structure
- A team with suitable experience
Structure
The licensed company carries the client-facing activity. Above it sits a holding company that owns the stake and the intellectual property. This keeps the licensed risk separate from other assets. Agree the structure with a lawyer.
Regulatory requirements change quickly. Before launch, current conditions must be verified with a virtual assets lawyer. The decision to open an account is made by the bank. Tax consequences depend on your residency.