Table of Contents
Frequently Asked Questions
What exactly does a Virtual Assets Transfer and Settlement Services licence cover in Dubai
The licence, operating under activity code 6619.88, authorises a business to facilitate the transfer, clearing, and settlement of virtual assets between counterparties. It sits within the auxiliary financial services category and is focused on infrastructure-layer work rather than consumer-facing trading.
It does not authorise deposit-taking, lending, or the operation of a crypto exchange. The business model is closer to a clearing house than a trading platform, which has direct implications for how regulators such as VARA and the Central Bank of the UAE classify and assess the entity.
Typical operational outputs include transaction processing, counterparty settlement coordination, and reconciliation services — essentially ensuring that when two parties agree to a transaction, the virtual assets move correctly and finality is confirmed.
How is a virtual assets settlement business different from running a crypto exchange
A crypto exchange is a marketplace where buyers and sellers discover prices and execute trades. A virtual assets settlement business is the infrastructure that ensures those trades actually complete — it handles the movement of assets, custody coordination, and confirmation of finality after two parties have already agreed to a transaction.
This distinction matters both commercially and regulatorily. Settlement providers are building the plumbing, not the marketplace, which places them in a different regulatory classification under VARA and means they are not subject to the same exchange-specific licensing requirements.
Why is Dubai considered a strong jurisdiction for virtual asset settlement businesses
Dubai offers a combination of regulatory clarity, institutional infrastructure, and a concentration of digital finance talent that few jurisdictions can match. The UAE consistently ranks among the top ten crypto-ready jurisdictions globally across major industry indices.
A key structural signal was the establishment of the Virtual Assets Regulatory Authority (VARA) in 2022 — Dubai created a dedicated regulator for the sector rather than retrofitting existing financial regulation. This gives businesses a clear, purpose-built compliance framework to operate within.
The free zone model, including options like Meydan Free Zone, also makes incorporation straightforward for international founders, reducing the friction typically associated with entering a new market.
Who are the typical customers of a virtual assets settlement business
This is fundamentally a B2B business. Primary customers include crypto exchanges that need settlement infrastructure, OTC desks managing large bilateral trades, institutional traders requiring counterparty coordination, and payment processors seeking compliant virtual asset rails.
Cross-border remittance operators represent a particularly high-growth segment, as they need settlement capability that satisfies compliance requirements in both originating and receiving jurisdictions. Fintech platforms building consumer-facing products also source white-label settlement capability from licensed providers.
What revenue models are typical for a virtual assets settlement business
Revenue in this sector typically comes from two main sources: per-transaction processing fees charged each time a settlement is facilitated, and monthly retainers for ongoing access to settlement infrastructure.
White-label arrangements with fintech platforms can also generate recurring licence or service fees. Because the business serves institutional and B2B clients rather than retail users, contract values tend to be higher and relationships longer-term compared to consumer-facing crypto products.
Which regulators oversee virtual asset settlement businesses in Dubai and the UAE
VARA (Virtual Assets Regulatory Authority), established in 2022, is the dedicated regulator for virtual asset activities within Dubai. It was created specifically for this sector, giving businesses a purpose-built compliance framework rather than one adapted from traditional finance rules.
The Central Bank of the UAE has issued AML/CFT frameworks that specifically address virtual asset service providers, adding an additional layer of compliance obligations. For onshore entities, the Securities and Commodities Authority (SCA) operates in parallel with VARA, so the applicable regulatory body depends on the structure and location of the entity.
What market opportunity exists for virtual asset settlement in the UAE region
Institutional demand for compliant settlement infrastructure is accelerating across the region. Rising regional trading volumes and active cross-border payment corridors — particularly between the UAE, South Asia, and East Africa — are generating significant B2B demand for settlement rails that meet AML and KYC standards.
Businesses operating remittance corridors increasingly need compliant virtual asset settlement as an alternative to correspondent banking, which can be slow and expensive. The UAE fintech market is projected to grow significantly through 2028, with digital assets forming a core segment, and Dubai accounts for the majority of MENA's regulated virtual asset activity following VARA's establishment.
Can international founders set up a virtual assets settlement business in Dubai
Yes. The free zone framework in Dubai is specifically designed to make incorporation accessible for international founders. Structures such as Meydan Free Zone are highlighted as a practical route for establishing a Virtual Assets Transfer and Settlement Services business without requiring a local Emirati partner.
The regulatory architecture is already in place, which means founders do not need to navigate an uncertain or evolving legal environment. The combination of a clear licence category (activity code 6619.88), a dedicated regulator in VARA, and a free zone incorporation path makes Dubai one of the more straightforward jurisdictions globally for entering this sector.
How to Start a Virtual Assets Settlement Business in Dubai
Dubai is one of the few places where virtual asset settlement is legal, regulated, and worth doing as a business. The rules exist, institutions want the service, and the free zone route makes setting up simple for founders based abroad.
This guide covers the Virtual Assets Transfer and Settlement Services license, activity code 6619.88. You will learn what it lets you do, who your customers are, and how to set up with Meydan Free Zone.
Key Stats at a Glance
What a Settlement License Covers
Activity code 6619.88 sits under financial support services. It is not a banking license. You cannot take deposits and you cannot lend.
What you do. You move virtual assets between two parties after they have agreed a deal. You handle the transfer, the clearing, and the confirmation that the deal is final.
What that looks like day to day. Processing transactions. Coordinating settlement between counterparties. Reconciling records so both sides agree on what happened.
How it differs from an exchange. An exchange is the marketplace where buyers and sellers find each other and agree a price. You are what makes the deal actually complete afterwards. You are building the plumbing, not the shopfront.
That difference matters to the regulator as much as to your customers. Your business looks more like a clearing house than a trading platform, and VARA and the Central Bank of the UAE will assess you on that basis.
Who Your Customers Are
This is a business to business service. Nobody sells to the public here.
Crypto exchanges. They need settlement infrastructure behind their platform.
OTC desks. They run large deals between two parties and need someone to complete them.
Institutional traders. They need coordination between counterparties on big trades.
Payment processors. They want virtual asset rails that meet the rules.
Cross-border remittance operators. This is the fastest growing group. They need settlement that satisfies the rules in both the sending and receiving country, and many now prefer it to correspondent banking, which is slow and costly.
Fintech platforms. They build consumer apps and buy white label settlement from licensed firms like yours.
How You Make Money
Two main streams. Per transaction fees each time you settle something, and monthly retainers for ongoing access to your infrastructure.
You do not need to own the technology on day one. Plenty of firms start as coordinators, arranging settlement between custodians and counterparties that already exist, then build their own systems once the revenue is there.
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The Rules You Have to Follow
VARA approval is required. Any firm providing virtual asset services in Dubai needs it, and settlement is on the list. Start this alongside your free zone setup, not after it.
Anti-money laundering comes from the Central Bank. The <a href="https://www.centralbank.ae/en/">Central Bank of the UAE</a> framework applies to every virtual asset firm whatever its structure. Your customer checks, transaction monitoring and suspicious transaction reporting must all be working before you settle a single client transaction.
Structure decides your regulator. Free zone firms in Dubai fall under VARA. Onshore firms fall under the SCA. The two are not interchangeable, so where you set up has real consequences.
Ongoing duties. Regular reporting, a named compliance officer, and transaction records an auditor can follow.
How to Set Up with Meydan Free Zone, Step by Step
Meydan Free Zone supports activity code 6619.88 under its financial support services category.
- Step 1, pick the activity: Confirm Virtual Assets Transfer and Settlement Services (6619.88) on your application. The Meydan Free Zone team can check you are eligible before you start.
- Step 2, choose your structure: An FZ-LLC is standard. It separates your liability and it is what banks and institutional counterparties expect to see.
- Step 3, file your papers: Passport copies, a business plan explaining how your settlement model works, and your compliance disclosures covering customer checks and anti-money laundering procedures.
- Step 4, get your trade license: This is the document everything else hangs off, from banking to VARA to signing your first client.
- Step 5, go to VARA: Where your activity needs VARA approval, this follows your license. Meydan Free Zone advisers can point you to the right VARA category.
- Step 6, open your bank account: You need a bank that is comfortable with virtual assets. Prepare early and bring a well documented compliance framework.
You can do all of this remotely. UAE residency is not required to set up through Meydan Free Zone, which suits founders building a Dubai entity before they move.
mResidency handles visas when you are ready for them. mAccounting keeps your books in order, which helps at bank and VARA stage. mCore, mAssist and mPlus cover the wider support once you are running.
Conclusion
Settlement is infrastructure work with real demand behind it in Dubai. It works as a business as long as you treat the licensing and compliance side with the same care you give the technology.
The rules are in place, the market is active, and the Meydan Free Zone route is a clean way in. Talk to the team to check you are eligible and start your application.
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