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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Regulated Crypto Lending in Dubai: VARA Lending & Borrowing Licence
Crypto-backed loans, margin lending, or yield products? The VARA Lending & Borrowing licence is your regulatory home. We manage the full application and build the risk framework VARA expects.
9+ Years of Compliance Expertise
End-to-End Execution
Is This You?
- You offer crypto-backed loans - VA collateral against fiat or VA loans
- You offer yield products where your firm acts as counterparty
- You provide margin lending facilities for VA trading
- You're building a P2P lending platform for virtual assets
- You operate an institutional VA lending desk
Key Requirements
Capital: higher of AED 500,000 or 25% of fixed annual overheads
2 Responsible Individuals - UAE residents, full-time, VARA-approved
Private office in Dubai required
Credit risk, liquidity risk, and collateral management frameworks - stress-tested
Documented margin call procedures, liquidation protocols, and LTV limits
Clear client disclosure: terms, rates, collateral requirements, liquidation conditions
Custody of VA collateral: requires Custody licence or VARA-licensed third-party custodian
What We Do for You
- Activity scopingLending & Borrowing vs Management & Investment: yield products sit at this boundary. We determine the correct category before any application.
- Risk frameworkCredit risk policy, collateral management procedures, LTV matrix, margin call and liquidation protocol, stress-testing documentation.
- End-to-end VASP applicationATI and full application managed end-to-end.
- Custodian structuringThird-party VARA custodian for collateral vs. in-house Custody licence: cost-benefit analysis for your model.
- AML/KYC programmeFull AML framework, borrower/lender due diligence, transaction monitoring.
Frequently Asked Questions
If your firm acts as counterparty — you take client assets and deploy them to generate returns — Lending & Borrowing typically applies. If you manage client assets with discretion to generate yield on their behalf, Management & Investment may be the right category. The distinction matters for capital, obligations, and the applicable rulebook.
VARA does not prescribe specific LTV ratios — but requires documented, stress-tested LTV policies with clear margin call and liquidation thresholds. We design these policies based on your product structure and asset mix.
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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.