---
type: free_zone
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "middle_east", "fatf", "crypto_friendly"]
aliases: ["VARA", "ARE-VARA", "Virtual Assets Regulatory Authority"]
created: 2026-04-13
updated: 2026-04-02
compile_into: ["[[country--united-arab-emirates]]"]
sources:
  - name: "Virtual Assets Regulatory Authority (Dubai)"
    url: "https://www.vara.ae"
    type: "official"
  - name: "Dubai Virtual Assets Regulation Law 2022"
    url: "https://www.vara.ae"
    type: "framework"
---

# 🇦🇪 [[free-zone--dubai-vara|Dubai VARA]] (VARA) — Crypto Regulation

> Dubai VARA operates a comprehensive and transparent regulatory framework for virtual assets, fostering innovation while ensuring consumer protection and risk mitigation. It is recognized as the world's first independent regulator for virtual assets with a global outlook.

## Overview

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Sub-jurisdiction of | [[country--united-arab-emirates|United Arab Emirates]] |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Low |
| Region | [[domain--middle-east|middle east]] |
| Currency | [[entity--aed|AED]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 0% |
| Capital Gains (Corporate) | 9% (>375K AED) |
| VAT on Crypto | No |
| Mining Tax | No specific guidance |
| Staking Tax | No specific guidance |
| Airdrop Tax | No specific guidance |

No crypto-specific tax guidance available.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--vara|VARA]] |
| Framework | Dubai Virtual Assets Regulation Law 2022 |
| Ease | medium |
| Cost | $15,000 - $50,000 |
| Timeline | 3 months |

Applicants follow a two-step process to obtain a VARA license. VARA publishes a public register of licensed VASPs.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | fsrb_only |

## DeFi

**Status:** regulated

DeFi activities fall under VARA's regulatory framework ensuring compliance with consumer protection and financial security standards.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under VARA's comprehensive virtual asset framework to ensure market integrity and investor protection.

## NFTs

**Status:** no_rules

No specific NFT regulation; generally permitted

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 5% |
| Climate | arid |
| Infrastructure | good |

Mining is legal with moderate electricity costs and good infrastructure. The arid climate may increase cooling costs.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 71/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

No significant enforcement actions reported; jurisdiction actively encourages crypto business

## CBDC Status: pilot

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [Virtual Assets Regulatory Authority (Dubai)](https://www.vara.ae)
- [Dubai Virtual Assets Regulation Law 2022](https://www.vara.ae)