01Who VARA regulates
The Virtual Assets Regulatory Authority licenses any firm carrying on a virtual asset activity in or from Dubai, in the mainland and the free zones other than DIFC. DIFC firms fall under the DFSA and Abu Dhabi firms under the FSRA in ADGM.
02The activities
- Advisory services
- Broker-dealer services
- Custody services
- Exchange services
- Lending and borrowing services
- Virtual asset management and investment services
- Transfer and settlement services
A firm applies for the activities it will actually carry on. Each adds capital, staffing and reporting requirements, so applying for more than needed slows the approval and raises the cost.
03The two stages
Stage one is an initial approval: the firm submits its business plan, ownership, management and a first set of policies, pays the initial fee and, once approved, incorporates and sets up. Stage two is the full licence: the firm demonstrates its compliance framework, technology, capital and staff, and receives a licence with conditions. Operations cannot begin before the second stage is complete. Six to twelve months from first submission is typical.