How to Secure a Cryptocurrency Licence in UAE: Step-by-Step Guide
Securing a cryptocurrency licence in the UAE presents a gateway to significant opportunities in the booming digital finance sector. With the UAE’s proactive stance on blockchain and virtual assets, new guidelines and frameworks have made the process smoother, more transparent, and business-friendly. Whether you are launching a crypto exchange, a token project, or blockchain-enabled financial services, a clear understanding of the regulatory path is essential. Here’s a comprehensive step-by-step guide to help you navigate the journey of obtaining a cryptocurrency licence in the UAE.
Step 1: Understand the Regulatory Landscape
The UAE has taken a leadership role in regulating and embracing digital assets. Several regulatory authorities manage crypto operations depending on your business location:
Securities and Commodities Authority (SCA):
This is the federal-level regulator overseeing crypto asset-related activities across the UAE.
Dubai Virtual Asset Regulatory Authority (VARA):
Created in 2022, VARA manages all digital asset-related activities within the Emirate of Dubai (excluding the DIFC).
Abu Dhabi Global Market (ADGM):
A leading international financial centre, ADGM offers a clear, robust framework under the Financial Services Regulatory Authority (FSRA) for virtual assets.
Dubai Multi Commodities Centre (DMCC):
A free zone offering crypto licences to businesses, especially those involved in blockchain and Web3 solutions.
Each of these authorities has its own set of regulations, procedures, and focus areas. It’s essential to understand their frameworks to determine the most suitable licensing route for your business.
Step 2: Choose the Right Jurisdiction
The UAE offers two main jurisdiction options-Mainland and Free Zones. Your choice depends on your business model, target customers, and desired benefits.
Mainland UAE: Ideal for companies planning to directly serve the UAE market. This setup often requires a local sponsor or partner, and regulations are overseen by the SCA or other local authorities.
Free Zones: These zones offer attractive incentives such as 100% foreign ownership, full profit repatriation, no import/export duties, and simplified company formation. Notable free zones offering crypto licences include:
DMCC Crypto Centre
ADGM (FSRA)
Dubai World Trade Centre (partnering with VARA)
Before applying, compare setup costs, regulatory requirements, and target markets supported by each jurisdiction.
Step 3: Prepare the Required Documentation
Thorough preparation of documentation increases the chance of a smooth and timely approval. While requirements may vary slightly, you’ll generally need:
- A comprehensive business plan, outlining the company’s crypto services, technology, security architecture, and future goals.
- Passport copies and personal details of all shareholders and directors.
- Proof of address (e.g., utility bill or tenancy contract) for all stakeholders.
- Bank reference letters and financial statements or proof of capital to demonstrate financial health.
- Well-defined AML (Anti-Money Laundering) and KYC (Know Your Customer) policies, highlighting how your platform will prevent misuse or illegal activities.
- Technical architecture showing cybersecurity measures in place to protect user data and assets.
Make sure all documents are translated into English or Arabic (as required), notarised, and valid.
Step 4: Submit Your Application
Once all documentation is ready, you can submit your application to the chosen authority. This typically involves:
- Completing online forms or visiting the free zone authority’s business centre.
- Paying initial registration or review fees.
- Participating in background checks and business vetting processes.
During this stage, it’s crucial to ensure all information aligns with regulatory expectations. Incomplete or inconsistent applications can result in delays or rejection.
Step 5: Regulatory Review and Compliance Check
After submission, your application will go through a compliance review. Regulatory bodies will evaluate:
- Your compliance with applicable crypto laws and cybersecurity standards.
- The strength and clarity of your AML and KYC protocols.
- The integrity of your business operations, including identity verification systems, transaction monitoring, and data security.
During this phase, you may be asked to provide additional information, explain technical capabilities, or adjust operational procedures. Authorities place a high value on transparency and readiness to adapt to regulatory feedback.
Responding quickly and professionally helps keep the approval timeline short—most applications are processed within a few weeks to a couple of months.
Step 6: Pay Licensing Fees and Finalise the Process
If your application is approved, you will be asked to pay the licence fees. The fees vary based on the jurisdiction and business activity:
DMCC: Around AED 34,000 annually for a crypto licence.
ADGM: Depends on the chosen business activity and licence category; custom pricing based on scope.
VARA: Pricing depends on whether the business is involved in advisory, custodial services, exchange operations, etc.
Once payment is processed, your licence will be issued, enabling you to legally operate within the UAE’s regulated crypto ecosystem.
The UAE has emerged as a global leader in crypto regulation, offering clear rules, business-friendly policies, and robust infrastructure. Whether you’re launching a crypto exchange, wallet service, or blockchain platform, obtaining a cryptocurrency licence in the UAE allows you to operate with legitimacy and trust. By following this step-by-step process-understanding the regulatory framework, choosing the right zone, preparing thorough documentation, and complying with legal standards—you can tap into one of the world’s most progressive digital asset markets. As demand for crypto services grows, now is the perfect time to establish your business in the UAE.
Also read: Crypto.com Becomes Exclusive Crypto Partner for UAE’s Tawasal Al Khaleej
