Strict Licensing Framework Driving Crypto Compliance in UAE
VARA Licensing Process: Obtaining a license from Dubai’s Virtual Asset Regulatory Authority (VARA) is highly rigorous and involves two main stages:
Initial Disclosure Questionnaire (IDQ): Preliminary phase where businesses provide an overview of planned operations, company structure, and key controllers.
Full License Application (FMP – Full Market Product): Comprehensive application requiring detailed compliance and operational information.
Key Requirements: $ETH
Corporate Structure: Must be a Limited Liability Company (LLC), excluding sole proprietorships.
Capital Requirements: Share capital ranging from AED 100,000 to AED 1,500,000 (approx. $27,000 – $409,000), depending on business activity.
Physical Presence: Mandatory office space and staff in Dubai.
Compliance: Strict adherence to AML/CFT rules, including FATF Travel Rule implementation.
Technical Standards: Robust cybersecurity, cryptographic controls, and risk management protocols.$DOT
These measures ensure transparency, investor protection, and position Dubai as a global leader in regulated crypto markets. $XRP
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