The Virtual Assets Regulatory Authority (VARA) in Dubai is the world’s first independent regulator for Virtual Assets (VA). Any entity wishing to conduct VA activities in or from Dubai (excluding DIFC) must obtain a VASP license from VARA. The process is multi-stage, complex, and requires stringent compliance across technology, capital, and global AML/CFT standards. Operating without a license or making false claims can lead to fines up to AED 500,000 and license revocation.
FrankDigit Accounting Services specializes in bridging the gap between innovative crypto business models and VARA’s regulatory framework. We provide end-to-end guidance from the initial Initial Disclosure Questionnaire (IDQ) to the final VASP Licence issuance. Guided by Confidentiality, Transparency, and Integrity (CTI), we ensure your financial structure and regulatory submissions are robust, verifiable, and optimized for success in this high-growth sector.
VARA regulates the provision, use, and exchange of Virtual Assets (VAs), which include cryptocurrencies, tokens, and NFTs with economic value. The licensing framework covers eight distinct activities.
| Activity Category | Description |
|---|---|
|
Advisory Services |
Providing personal recommendations on VA transactions. |
|
Broker-Dealer Services |
Facilitating or executing VA transactions on behalf of clients. |
|
Custody Services |
Safekeeping and storing clients’ Virtual Assets. |
|
Exchange Services |
Operating a marketplace for trading VAs against fiat or other VAs. |
|
Lending & Borrowing |
Facilitating contracts for lending or borrowing Virtual Assets. |
|
Management & Investment |
Managing or administering VA investment portfolios. |
The licensing is a two-stage process: Stage 1 involves submitting an IDQ and obtaining Approval to Incorporate (ATI); Stage 2 requires submitting the full regulatory package and receiving the VASP Licence.
We provide the technical and compliance documentation necessary to meet VARA’s strict requirements for operational licensing.
| Delieverable | How FrankDigit Delivers |
|---|---|
|
IDQ and ATI Preparation |
Complete preparation and submission of the Initial Disclosure Questionnaire and Business Plan to secure the critical Approval to Incorporate (ATI). |
|
Regulatory Policy Suite |
Drafting 60+ mandatory policies and procedures (AML/CFT, Compliance, Risk, Cybersecurity, Market Conduct) required for VASP licensure. |
|
Capital & Financial Structure |
Advising on meeting VARA’s specific minimum Capital Requirements and ensuring financial statements demonstrate stability and segregation of client funds. |
|
Compliance Officer Vetting |
Reviewing and supporting the appointment of Responsible Individuals and the AML Compliance Officer (MLRO) to meet VARA’s Fit and Proper test. |
|
Ongoing Compliance Program |
Implementing continuous monitoring procedures, internal audit frameworks, and AML attestation to maintain license validity and readiness for inspection. |
VARA’s primary concern is investor protection and the prevention of financial crime, demanding meticulous internal controls.
VARA imposes stringent AML/CFT requirements aligned with international FATF standards. Our advisory ensures your firm implements robust Customer Due Diligence (CDD) and Know Your Customer (KYC) processes, a comprehensive Business Risk Assessment, and the required Transaction Monitoring systems. Non-compliance in this area is subject to the most severe fines and immediate suspension.
Applicants must demonstrate robust Technology and Information Security controls. This includes secure management of client private keys, clear Business Continuity Plans (BCP), and effective Incident Response procedures. We assist in aligning your technical framework with VARA’s Technology & Information Rulebook, preparing your documentation for the regulator’s technical assessment.
We simplify the regulatory hurdle, ensuring a seamless and fast path to full operational licensing.
- Decode (Activity Scoping): We assess your proposed business model and determine the precise VARA license categories required, advising on optimal incorporation zone (e.g., DWTC) and corporate structure.
- Simplify (Documentation & Submission): We lead the preparation of the full regulatory package, including all financial projections, policy rulebooks, and personnel documentation, and manage the submission and query response phases with VARA.
- Automate (Post-License Control): Once the license is granted, we establish the ongoing Compliance Monitoring Program (AML/CFT), organize the mandatory Third-Party Attestation of policies, and embed an internal audit function to ensure perpetual compliance.
Ready to launch your Virtual Asset business in Dubai under VARA regulation? Secure your license and operations with specialized compliance expertise.
📞 Contact FrankDigit Accounting Services today for VASP Licensing and Compliance Advisory.