Do crypto payments in a free zone software company require a VASP or VARA license?

Dear Questioner,

In the UAE, particularly in free zones, if your software company is accepting payments in cryptocurrency and converting them into fiat currency for company expenses, you might need to consider licensing requirements under the Virtual Assets Regulatory Authority (VARA), especially if these activities fall within the scope of regulated activities.

Dear Questioner,

Yes, you will likely need either a VASP (Virtual Asset Service Provider) license or a VARA (Virtual Assets Regulatory Authority) license to operate your software company in a free zone in Dubai.

This license is typically required for companies involved in various crypto-related activities, including buying, selling, storing, or exchanging virtual assets.

While the specific requirements may vary depending on the free zone, most free zones in Dubai have regulations governing VASP activities.

If you need further clarification, you may ask us.

Thank you for reaching out with your inquiry!

Given the nature of your business, it's essential to ensure compliance with Dubai's regulatory framework, especially when dealing with cryptocurrencies.

The Virtual Asset Regulatory Authority (VARA) governs virtual asset activities within Dubai, and depending on the scope and volume of crypto transactions, a VASP (Virtual Asset Service Provider) license may indeed be necessary.

However, to give you a more accurate assessment of your specific situation, it would be beneficial to discuss further details such as the nature of your crypto transactions, whether they involve third-party services, or whether you're dealing directly with customers using crypto as a payment method.

I’d be happy to assist you with the necessary steps and guide you on whether you need to apply for a VASP license or any additional permits under VARA.

Please feel free to reach out to me on WhatsApp, phone, or email, and we can go over your case in more detail.

Looking forward to assisting you further.

Best regards,

Suhail Rana

It cannot be licensed because it is illegal.