Broker-Dealer Licence in Dubai
A broker-dealer buys, sells or arranges trades for clients, either as their agent or by trading as principal. Which licence you need in Dubai depends on what you trade and where you are based. Virtual asset broker-dealers in Dubai are licensed by VARA. Broker-dealers in the DIFC are licensed by the DFSA, and securities brokers onshore are licensed by the Capital Market Authority (CMA, formerly the SCA). VAF Global helps you pick the right route and prepare the compliance framework the regulator expects.
Who needs this licence?
- OTC crypto desks buying and selling for clients
- Brokerage apps that route client orders in virtual assets
- Firms converting fiat to virtual assets for clients (which can also fall under Exchange Services)
- Placement agents distributing virtual asset offerings
- Securities and derivatives brokers serving UAE clients
- Liquidity providers dealing as principal with clients
Which regulator applies?
VARA: Broker-Dealer Services
For virtual asset broker-dealers in Dubai mainland and Dubai free zones (excluding DIFC). Covers dealing as agent or principal, arranging orders and placement of virtual assets.
DFSA: Dealing in Investments / Arranging Deals
For broker-dealers in the DIFC, covering securities, derivatives and, under the DFSA crypto token regime, crypto tokens the firm has assessed as suitable.
CMA (formerly SCA): Securities and virtual assets
The federal Capital Market Authority, which replaced the SCA in 2026, licenses securities brokerage and virtual asset activities for investment outside Dubai's VARA regime.
ADGM FSRA (Abu Dhabi alternative)
Firms that prefer Abu Dhabi can apply to the FSRA for Dealing in Investments or Arranging Deals, including in virtual assets.
Key requirements
- A clear definition of whether you deal as agent, as principal, or both
- Fit and proper owners, directors and senior management, with a Compliance Officer and MLRO
- AML/CFT framework: client due diligence, transaction monitoring, sanctions screening and suspicious transaction reporting through goAML
- Client money and client asset segregation arrangements
- Best execution, conflicts of interest and market conduct policies
- Capital and liquidity resources set by the regulator for the activity
- Risk disclosures and suitability or appropriateness procedures for clients
The licensing process
- 1
Choose the regulator
Map your assets (virtual or traditional), client types and location to VARA, DFSA, CMA or FSRA.
- 2
Set up the entity
Incorporate in the right jurisdiction and secure the commercial licence that matches the regulated activity.
- 3
Build the compliance framework
Prepare AML/CFT, KYC, conduct, client asset and risk management documentation.
- 4
Apply
Submit the application with business plan, financial projections and personnel details.
- 5
Respond and meet conditions
Answer regulator questions, fund capital and complete pre-launch requirements.
- 6
Launch and stay compliant
Begin operating under supervision with ongoing monitoring, reporting and audits.
How VAF Global helps
We prepare and run the compliance side of your licence, so your application meets the regulator's expectations from day one.
- Regulator and activity analysis for your broker-dealer model
- AML/CFT, KYC and transaction monitoring frameworks
- Conduct of business, conflicts and best execution policies
- Risk assessments and compliance monitoring plans
- Outsourced MLRO and compliance support after launch
- KYT screening of client wallets and transactions
VARA Broker-Dealer Licence: FAQ
Do I need a VARA licence to run an OTC crypto desk in Dubai?
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In most cases, yes. Buying and selling virtual assets for clients in or from Dubai (outside the DIFC) typically falls under VARA's Broker-Dealer Services activity. Depending on the model, fiat-to-crypto conversion and OTC dealing can fall under Broker-Dealer Services, Exchange Services or both, so the activities need to be mapped against VARA's definitions.
What is the difference between a broker-dealer and an exchange licence?
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A broker-dealer handles trades for its clients, as agent or principal. An exchange operates a venue where many buyers and sellers are matched. The two carry different requirements, so the business model needs to be mapped carefully.
Can a DIFC firm offer crypto brokerage?
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DIFC firms are regulated by the DFSA, which permits activities in crypto tokens that meet its suitability criteria (assessed by the firm, or recognised by the DFSA for fiat-backed stablecoins). VARA does not license firms inside the DIFC.
How does VAF Global support a broker-dealer application?
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We map your model to the right regulator and activities, prepare the AML/CFT, KYC, conduct and risk documentation the regulator expects, and can act as your outsourced MLRO once you are licensed.
Related insights
Crypto Proprietary Trading in Dubai: VARA NOC and the USD 250m Threshold
Trading crypto with your own money in Dubai or DMCC? How VARA treats proprietary trading, when registration is mandatory and when you need a full licence.
Read articleVARA Licence Checklist: Compliance Documents to Prepare Before You Apply
The compliance documents and decisions to have ready before submitting a VARA licence application, from risk assessments to Travel Rule procedures.
Read articleOther UAE licensing guides
Last reviewed October 2026. This guide is general information for compliance planning, not legal advice. Regulatory requirements change; always confirm current rules with the regulator. VAF Global is a compliance consultancy and does not provide legal services.