Crypto Business in the UAE: How to Launch a Web3 Company in Dubai under VARA

Crypto business in the UAE is rapidly gaining momentum, evolving from a payment method into a full-fledged foundation for building modern companies. Today, the United Arab Emirates is confidently emerging as a global leader in regulating and developing the crypto economy. The government is actively implementing Web3 technologies and creating unique legal and infrastructure conditions for blockchain, DeFi, and digital asset businesses. Dubai has become the core of this ecosystem, attracting the largest players in the cryptocurrency market.

In this article, we’ll look at how to open a crypto company in the UAE, what licenses are required, where to operate, and why Web3 entrepreneurs should pay attention to Dubai.

Why Dubai Has Become a Hub for Cryptocurrencies and Web3

Dubai has brought together three key factors: political will, modern legislation, and technological infrastructure. In 2022, Law No. 4 on the regulation of virtual assets was adopted in the Emirate of Dubai, establishing the Virtual Assets Regulatory Authority (VARA). This move signaled the country’s serious intent to create a centralized but flexible ecosystem for participants in the crypto market.

In addition, the UAE is actively promoting government initiatives related to Web3. For example, Emirates Airlines announced its intention to accept cryptocurrency as a payment method for tickets starting in 2026. This highlights the level of state support for the crypto industry.

Crypto Regulation in the UAE: The Role of VARA, DIFC, and ADGM

Crypto regulation in the UAE is divided by jurisdiction. Outside the free zones, VARA operates — a body that regulates the activities of virtual asset service providers (VASPs) under Dubai law. It develops licensing frameworks for crypto exchanges, custodial services, brokers, and digital asset managers.

In DIFC (Dubai International Financial Centre), its own regulator operates — the Dubai Financial Services Authority (DFSA), which functions under the British common law model. In May 2025, DFSA announced the launch of the Tokenisation Regulatory Sandbox in DIFC, where 96 firms had already registered. After that, in June 2025, the regulator began working with them to start pilot testing through the Innovation Testing Licence.

An alternative is ADGM (Abu Dhabi Global Market), which offers a full range of cryptocurrency licenses. It is popular with large international companies working with institutional clients.

Crypto Business Licenses: How to Choose and Obtain One

Depending on the nature of the activity, crypto companies in the UAE are required to obtain the appropriate license. Among the license types from VARA:

• License for operating a crypto exchange;
• License for custodial services;
• Broker/dealer license for virtual assets;
• License for managing investments in cryptocurrency.

The licensing process includes:

• Submission of a business plan, KYC and AML policies;
• Financial model and proof of capital sources;
• Compliance verification by VARA or DFSA;
• Obtaining preliminary approval and company registration.

License costs can start from $15,000 and reach up to $100,000 depending on the type of activity and jurisdiction. The time to obtain one ranges from 3 to 6 months.

Where to Open a Crypto Company in the UAE: DMCC and DIFC

One of the most popular zones is the DMCC Crypto Centre. Over 650 crypto companies are registered here, including Bitcoin.com and Crypto.com. DMCC offers conditions for scaling startups, including accelerators, co-working spaces, and special tax conditions (0% corporate tax if the Qualified Free Zone Person status is met).

An alternative is the DIFC Innovation Hub, which offers a special license at a reduced cost (USD 1,500 per year) and the possibility to operate for up to 5 years with further expansion. This is especially relevant for startups working with DeFi, NFT, and tokenised assets.

Taxes and Reporting for Crypto Companies

Since 2023, the UAE has applied a 9% corporate tax for companies with annual profits exceeding AED 375,000. However, Free Zone companies such as those in DMCC and DIFC may apply a 0% rate if they meet the requirements of a Qualified Free Zone Person (QFZP). This provides a significant advantage for crypto businesses.

Important to consider:

• Annual reporting is required;
• Audit standards must be met (especially under VARA requirements);
• VAT registration if revenue exceeds the threshold.

Banks and Settlements: How to Work with Fiat

Although UAE banks have traditionally been cautious about cryptocurrencies, the situation is rapidly changing. Some fintech platforms and neobanks already offer accounts for Web3 companies, including the ability to operate in AED and USDT. These platforms are becoming an important bridge between the fiat economy and the cryptocurrency sector.

Additionally, VARA is actively working with other government agencies to introduce tokenisation into the real estate and logistics sectors. For example, tokenisation projects are being implemented in collaboration with the Dubai Land Department.

Successful Crypto Business Cases in Dubai

Among the first to receive a license from VARA were the Binance exchange and Nomura’s investment arm, Laser Digital. This strengthened trust in the new regulatory system and paved the way for other projects.

In 2024–2025, more than 300 new crypto and Web3 companies were registered in DMCC. Among them were NFT platforms, wallets, DeFi protocols, and startups working with GameFi and metaverses. DMCC also signs partnerships with tech giants and venture capital funds.

If you are working in cryptocurrency, Web3, or DeFi — take a look at the UAE, especially Dubai. The regulators VARA and DFSA offer clear and modern rules of the game. And the free zones DMCC and DIFC provide unique infrastructure for starting and scaling a business.

Cryptocurrency in the UAE is not just a trend, but a real opportunity for businesses to enter the international level while maintaining tax advantages and operating in a legal and supportive environment.