Proxima Eight FZE LLC
Business Centre, Sharjah Publishing City Free Zone, Sharjah, United Arab Emirates
Business Centre, Sharjah Publishing City Free Zone, Sharjah, United Arab Emirates
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Is This You?
- You're building or operating a spot trading platform targeting UAE clients
- You run an order-book exchange and want to operate under VARA regulation
- You're an international exchange entering the Dubai market
- You have a matching engine and need to classify your activity correctly before applying
- You've been told you need a VARA licence but aren't sure which category applies
What Makes Exchange Licensing Different
Exchange Services is the most capital-intensive and technically demanding VARA category. Unlike Advisory or Broker-Dealer, it requires:
Most applicants underestimate the technology audit requirement. VARA's Technology and Information Rulebook sets detailed standards for system resilience, cybersecurity, data integrity, and business continuity - a third-party auditor must verify compliance before the licence is issued.
- AED 800,000-1,500,000 minimum paid-up capital (depending on custody structure)
- Mandatory third-party technology audit before licence issuance
- Market abuse prevention framework - trade surveillance, wash trading detection, spoofing prevention
- Token listing approval - only VARA-approved assets may be listed; new listings require separate application
- Custody decision - hold client assets in-house (requires Custody licence) or use a VARA-licensed custodian
Most applicants underestimate the technology audit requirement. VARA's Technology and Information Rulebook sets detailed standards for system resilience, cybersecurity, data integrity, and business continuity - a third-party auditor must verify compliance before the licence is issued.
What We Do for You
- Activity classificationConfirm Exchange Services is the right category. OTC desks and market makers often qualify as Broker-Dealer - misclassification leads to over-capitalisation and delays.
- Capital structureAdvise on optimal capital holding (trust account vs surety bond) and whether a VARA-licensed custodian reduces your capital requirement.
- Technology audit preparationIdentify gaps in your tech stack before the auditor does. We prepare you for the mandatory third-party audit.
- Market conduct frameworkDesign your market surveillance procedures, abuse detection policies, and incident reporting protocols per VARA's Market Conduct Rulebook.
- AML/KYC programmePolicies, transaction monitoring, KYT tool integration (Chainalysis, Elliptic, or equivalent), Travel Rule compliance, goAML registration.
- Token listing strategyMap your initial asset list against VARA's approved list; prepare token listing applications for assets not yet approved.
- End-to-end ATI and VASP applicationFull documentation package, VARA submission, and regulator engagement throughout review.
Regulated Activities in ADGM
VARA Crypto Brokerage Licensing (Dubai)
/vara-license-dubai
VA Proprietary Trading Launch (DMCC)
/dmccllicense
Frequently Asked Questions
Typically 6–10 months - longer than other VARA categories due to the technology audit requirement. Timeline depends heavily on how prepared your tech stack is when we begin.
Yes, unless you use a VARA-licensed third-party custodian. Using a custodian also reduces your minimum capital from AED 1.5M to AED 800K - a significant difference for most applicants.
Only VARA-approved virtual assets. Anonymity-enhanced tokens are prohibited. New listings require a separate VARA token listing application. We map your planned asset list against VARA's approved list as part of pre-application strategy.
Yes. The VARA licence covers your Dubai-incorporated entity. Cross-border operations are subject to the regulatory requirements of each jurisdiction you serve - we map this as part of the licensing strategy.
Related
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Exchange in Dubai Process
Exchange in Dubai Process
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Please note: We do not provide any personalized investment advice, token selection guidance, or transaction recommendations. AMLzone is a compliance consultancy and project management services provider, not a Virtual Asset Advisor.
Please note: We do not provide any personalized investment advice, token selection guidance, or transaction recommendations. AMLzone is a compliance consultancy and project management services provider, not a Virtual Asset Advisor.