How to get a digital assets license in the UAE

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Why you need a digital assets license for blockchain and web3 projects

Operating in the blockchain and Web3 space in the UAE requires a clear legal framework, especially as the government takes active steps to regulate and legitimize the digital asset sector. While not as strictly controlled as crypto trading or custody, blockchain-related development is still subject to certain rules.

• Legal enforcement is in place against crypto fraud and unauthorized digital asset trading.
• Specialized courts and police units have been created to address virtual asset crimes.
• Strict anti-money laundering policies govern all crypto activity to prevent money laundering (AML).

Key compliance requirements for license approval

If your business involves crypto assets beyond just development (e.g. exchanges, wallets, or custodial services), you will need a VASP (Virtual Asset Service Provider) license, which involves:

• Full KYC/AML policies
• Ongoing compliance checks
• Transaction monitoring and reporting

If you are focused purely on development, advisory, or non-custodial platforms, a VASP license is not required, though you must still operate within the approved framework of your chosen jurisdiction.

UAE’s main regulatory authorities

• VARA (Virtual Assets Regulatory Authority– Dubai): Regulates VASPs, enforces AML/KYC, protects consumers.
• DFSA (Dubai Financial Services Authority – DIFC): Licenses tokenized assets, including stablecoins and ICOs.
• FSRA (Financial Services Regulatory Authority – ADGM, Abu Dhabi Global Market): Regulates crypto, digital securities, fiat tokens. Requires full VASP compliance.

Steps to apply for a digital assets license

Eligibility and application process

To apply for a digital assets license—whether for blockchain development, NFT marketplaces, or regulated crypto services—you must meet certain criteria:

Eligible entities

UAE-registered free zone or mainland companies. Individuals must incorporate a company first.

Required documents

• Business plan with technical and financial details
• Passports and CVs of all shareholders and directors
• KYC documents and proof of address

Application steps

1. Choose a jurisdiction: DIFC, ADGM, DMCC, or RAK DAO
2. Submit pre-application: Initial approval or Expression of Interest (EOI)
3. Undergo regulatory review: Includes due diligence, business model checks, and interviews
4. Receive final approval and license

After obtaining a digital asset license and finalizing your company setup you may apply for a residence visa and open a bank account, if you need one.

Business activity scope and KYC/AML obligations

Blockchain development – This activity usually falls under IT or software licenses. Since it doesn’t involve handling client funds, there are minimal compliance requirements, and no VASP license is needed.
NFT marketplace (non-financial) – If you're running a marketplace that deals with NFTs as digital art or collectibles (not as financial instruments), it can be licensed under e-commerce or media activities. Basic identity verification for users may be required.
Crypto exchange, wallet, or brokerage – These are regulated activities that require a VASP (Virtual Asset Service Provider) license. They come with full KYC (Know Your Customer) and AML (Anti-Money Laundering) obligations, including user verification, transaction monitoring, and regular reporting.
DeFi protocol (non-custodial) – Decentralized finance projects that do not control user funds are still under review by regulators. The compliance requirements vary depending on how the platform is structured and how it generates revenue.

Corporate structure, office, and capital requirements

Your company must comply with the structural requirements of the licensing authority.

• Legal form: Most commonly FZE (Free Zone Establishment) or LLC
• Office requirements:
  • Mandatory in most zones
  • Flexi-desks allowed in RAK DAO, DMCC, and ADGM for non-regulated activities
  • Physical office may be required for regulated services
• Capital requirements:
  • Unregulated activities: No minimum capital
  • VARA-regulated firms: AED 500,000 to AED 10 million depending on the activity
  • ADGM/FSRA: Custom thresholds + professional indemnity insurance

Final thoughts: launching your web3 or blockchain business in the UAE

The UAE is one of the most progressive jurisdictions for digital asset and crypto businesses. It already offers a forward-thinking legal and regulatory framework—and continues to expand opportunities for entrepreneurs through the launch of new license types, free zones, and jurisdictions.

The country’s vision to become a global digital hub ensures that this sector, including the crypto industry, will continue to grow rapidly, supported by government initiatives and private investment.

However, given the evolving nature of the industry, it is crucial to stay fully compliant. Missteps in licensing requirements, KYC, or AML could lead to serious legal consequences—not just in the UAE but also in your home country. That’s why it’s essential to handle setup correctly from the start.
Professional business consultants can help you navigate licensing, documentation, and compliance—so your business is built on a strong and legal foundation from day one.