VARA Prudential Requirements: Capital and Insurance, VASPs

Frequently Asked Questions

01.What is the minimum paid-up capital for a VARA VASP licence?

Under VARA Company Rulebook Part VI.B, paid-up capital depends on the activity: AED 100,000 for Advisory, AED 400,000 to 600,000 for Broker-Dealer, AED 800,000 to 1,500,000 for Exchange, AED 600,000 for Custody, and AED 280,000 to 500,000 for Management. Firms must hold the higher of the fixed floor or a percentage of fixed annual overheads.

02.How does VARA differ from MiCA on prudential capital?

VARA sets activity-tiered AED floors plus a 1.2 times net liquid assets test and 100 percent reserve backing for client assets. MiCA Article 67 sets EUR 50,000, 125,000, or 150,000 minimums, with the higher of that or one quarter of fixed overheads. VARA layers a daily-reconciled liquidity and reserve regime that MiCA does not specify identically.

03.What insurance must a VARA VASP hold?

VARA Company Rulebook Part VI.D requires professional indemnity insurance, directors and officers insurance, and commercial crime insurance covering virtual assets held in hot wallets, all placed with a regulated insurer. Coverage must be adequate to the size and complexity of the business, and VARA can require further cover through licence conditions.