VASP License Dubai: How to get, Validity, Charge

VASP License Dubai: How to get, Validity, Charge

VASP License Dubai

In today’s digital world, cryptocurrencies like Bitcoin and Ethereum are becoming more popular. But with this popularity comes the need for rules to keep people safe. One important rule is the VASP license.

If you’re in the business of handling virtual assets like cryptocurrencies, you need a VASP license. This license ensures that you follow anti-money laundering (AML) and know your customer (KYC) regulations. Virtual Asset Service Providers (VASPs) help with crypto transactions. This article provides detailed information about the VASP license, its requirements, its validity, and the application process.

What is VASP License?

A VASP license, which stands for Virtual Asset Service Provider license, is a permit issued by the government that allows a company to provide cryptocurrency exchange and trading services. A VASP license is needed because cryptocurrencies can be used for illegal activities. The license helps keep businesses accountable and protects people who use cryptocurrencies.

This license is required in many countries as governments implement regulatory measures to protect consumers and prevent illegal activities in the crypto market. This license is important for companies directly involved in the exchange and trading of cryptocurrencies in order to operate legally within the legal framework applicable in their respective countries. Canada, Lithuania, Australia, Italy, Bulgaria, and Spain are currently the top five VASP licensing countries.


Why Vasp license is required?

A VASP license is essential for several reasons. Firstly, it ensures that a company follows local laws and operates within the legal framework established in its country. This provides security for clients who want to know that their financial assets are safe and secure throughout the

process. Second, having a VASP license increases customer confidence because it shows that the company meets the necessary requirements and operates legally. Lastly, a VASP license is often a legal requirement for companies providing cryptocurrency exchange and trading services.


  • The company must be registered as a public or private limited company with a minimum share capital of €40,000.
  • The company must have qualified and experienced staff in the financial field.
  • The company must take measures to prevent money laundering and financing terrorism.
  • Operations should follow legal rules and specific requirements set by authorities
  • An internal organizational structure is necessary to safeguard users’ personal and financial information.
  • Effective IT systems are important for fraud or suspicious
  • Detailed documentation, such as business plans, financial information, internal policies, and legal documentation, must be provided.
  • Directors, senior officers, and major shareholders must meet ‘fit and proper’ criteria.


  • Business Plan
  • Company Incorporation Documents
  • Proof of Company Shareholding Structure
  • Organizational Structure Chart
  • Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Policies
  • Know Your Customer (KYC) Procedures
  • Customer Due Diligence (CDD) Procedures
  • Risk Management Framework
  • Internal Controls and Compliance Procedures
  • Financial Statements
  • IT Security Policy
  • Data Protection Policy
  • Operations Manual
  • Business Continuity Plan
  • Compliance Officer Appointment Document
  • Fit and Proper Test for Directors and other Staff
  • Proof of Sufficient Capitalization
  • Proof of Insurance Coverage
  • Regulatory Application Forms and Fees


The process for obtaining a VASP license varies by country but generally involves the following steps:

  • To obtain a VASP license, a company must follow certain requirements set by local rules and regulations. These requirements may include submitting personal, tax, and financial documents, as well as showing that you have technical knowledge in the crypto market.
  • Prepare all the required documents, including the physical address of the VASP, the company’s incorporation documents, and a detailed business plan
  • Once all requirements are met and documentation is prepared, the company can submit its application for a VASP The application process may involve paying fees and participating in meetings or interviews.
  • After obtaining a VASP license, a company must continuously meet general licensing conditions and follow all relevant regulations, rules, and directives that may change over time.

How to apply?

The company needs to submit the application form for a VASP (Virtual Asset Service Provider) license to the appropriate authorities in their country of residence or where the company is located. For example, in the UAE, companies can apply for a VASP license through the Virtual Assets Regulatory Authority (VARA). The application process involves two stages: first, applying for initial approval to establish a company and start

setting up operations, and then applying for the VASP license. Companies carrying out virtual asset activities in Dubai can submit their applications through Dubai Economy and Tourism (DET) for mainland firms or any Dubai Free Zones (FZ) in the Emirate of Dubai (excluding DIFC).


A VASP license is typically valid for a period of one year and must be renewed annually.

This is the case in Dubai, where a VASP license is mandatory for conducting virtual asset services. Once issued, the license remains valid for 12 months and must be renewed annually to maintain the law and regulations.


A VASP (Virtual Asset Service Provider) license has several advantages for companies operating in the cryptocurrency and digital asset sectors. Here are some of the benefits:

  • A VASP license shows that a company follows anti-money laundering (AML) and Know Your Customer (KYC) regulations, which are important for preventing financial crimes such as money laundering and terrorism financing.
  • Operating with a VASP license increases the credibility and trust of a company’s customers and partners, as it is transparent, safe, and secure.
  • Holding a VASP license can provide access to banking services, payment systems, and other support services that are important for creating banking relationships and smooth
  • Some VASP license holders, like VDH Products B.V., offer free service and support as part of the license, ensuring that customers receive the necessary assistance and updates for their VASP systems.
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