When it comes to operating a crypto business in Abu Dhabi, VARA, the Virtual Assets Regulatory Authority, is the only official body that grants legal permission to trade, issue, or service digital assets. Also known as Virtual Assets Regulatory Authority, VARA sets the rules for everything from exchanges to token issuers — and getting licensed isn’t cheap or simple. If you’re thinking about launching a crypto platform, running a DeFi project, or even offering staking services in the UAE, you need to understand what VARA actually requires — and how much it will cost you.
VARA licensing isn’t a one-size-fits-all system. There are different tiers based on what you do: trading platforms, wallet providers, NFT marketplaces, and token issuers each face different rules and fees. The base application fee starts around $25,000, but that’s just the start. You’ll also need proof of capital reserves (often $1 million or more), local office space, compliance officers, AML/KYC systems, and regular audits. For smaller projects, the total cost can easily hit $150,000 in the first year. And if you skip this? You’re not just breaking rules — you’re risking criminal charges, asset seizures, and a permanent ban from operating in the region.
VARA doesn’t just care about money. It cares about trust. That’s why it ties licensing directly to user protection: exchanges must prove they hold customer funds securely, token issuers must disclose real team details, and all platforms must report suspicious activity. This isn’t bureaucracy — it’s what separates legit platforms from the scams you see in posts about NUT MONEY or TNNS PROX. The same clarity that makes VARA one of the strictest regulators also makes it one of the most respected. If you’re comparing crypto exchanges, you’ll notice that platforms like Figure Markets and OKX operate under similar frameworks — they’re not just big because they’re popular, they’re big because they passed tough licensing checks.
What you’ll find in the posts below are real examples of what happens when companies ignore these rules — or when users get fooled by fake airdrops and unlicensed platforms. You’ll see how Singapore’s MAS rules compare, how U.S. stablecoin laws like the GENIUS Act shape global standards, and why places like Abu Dhabi are becoming the new hub for serious crypto businesses. This isn’t about hype. It’s about survival in a world where regulators are watching — and the cost of getting it wrong is higher than ever.
VARA is Dubai's strict crypto regulator requiring millions in capital, banned privacy coins, and full compliance for exchanges, wallets, and token issuers. Here's what you need to know to get licensed in 2025.