VA Issuance License
License for issuing new virtual assets including fiat-referenced stablecoins with 100% reserve backing.
VARA Regulations 2023, Virtual Asset Issuance Rulebook
Capital Required
AED 1,500,000 or 2% of reserve assets plus 1.2x monthly expenses
Timeline
5-9 months
Fees
AED 100,000 application + AED 200,000 annual supervision
Regulatory Body
Virtual Assets Regulatory Authority (VARA)
Legislative Framework
Dubai Law No. 4 of 2022, Virtual Assets and Related Activities Regulations 2023, VARA Rulebooks (13 total: 5 Compulsory, 8 Activity-Specific)
Last updated: August 2025
Key Requirements
Base capital of AED 1,500,000 or 2% of average reserve assets (whichever higher) plus monthly operational expenses
100% reserve backing in corresponding fiat currency or highly-rated government securities per Category 1
Weekly independent audits of stablecoin reserves with certification of reserve adequacy and segregation
Segregated reserve accounts with VARA-licensed banks under custodial arrangements with restricted use
Chief Financial Officer and Chief Compliance Officer with treasury management and regulatory compliance experience
Professional indemnity and cyber liability insurance of minimum AED 1,000,000 for issuance operations
Smart contract code audits by independent security firms with annual re-audits and remediation documentation
Clear disclosure documentation specifying reserve composition, issuance mechanics, redemption procedures, and risks
Application Process
Prepare comprehensive VA Issuance license application with detailed stablecoin design and reserve policy
Submit organizational structure with management CVs for Chief Financial Officer and Chief Compliance Officer
Provide reserve management procedures, custody arrangements, and weekly audit protocols aligned with VARA
Include smart contract documentation with audit reports from independent security firms
Submit disclosure documentation and user agreements specifying reserve backing and redemption
VARA review with approval required before each stablecoin issuance launch per licensing conditions
Expected Total Timeline
5-9 months
Ongoing Obligations
After obtaining your VA Issuance License, these are the continuing compliance requirements you must maintain.
Weekly independent audits of stablecoin reserves with auditor reports submitted to VARA monthly and publicly
Quarterly reporting of stablecoin circulation, reserve composition, and redemption activity to VARA
Monthly capital adequacy reports and annual independent audit of financial statements and reserve controls
Immediate notification to VARA within 24 hours of reserve shortfalls, redemption failures, or incidents
Annual fit-and-proper assessments for Chief Financial Officer and Chief Compliance Officer with updates
Annual smart contract security audits with remediation of identified issues and VARA documentation
Cost Summary
Capital Requirement
AED 1,500,000 or 2% of reserve assets plus 1.2x monthly expenses
Application & Licensing Fees
AED 100,000 application + AED 200,000 annual supervision
Jurisdiction Setup Cost
$50,000-$100,000
Annual: $40,000-$120,000
Other UAE / Dubai Licenses
Explore other license types available in UAE / Dubai.
VA Exchange License
VA Broker-Dealer License
VA Custody License
VA Lending & Borrowing License
VA Management & Investment License
VA Advisory License
Need help with VA Issuance License?
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