Establishing a VASP in Abu Dhabi in 2025
With the growing global appetite for virtual assets, the Financial Services Regulatory Authority (FSRA) has taken a leading role in developing a secure, well-regulated environment. This initiative positions the Abu Dhabi Global Market (ADGM), as the first jurisdiction worldwide to implement and enforce a comprehensive regulatory framework tailored to virtual assets.
ADGM’s strategic goal is to attract reputable virtual asset players, including multilateral trading facilities, brokers, custodians, asset managers, and other intermediaries, to operate within its ecosystem. Committed to maintaining a robust and high-standard regulatory regime, ADGM aims to foster trust in the market and encourage participation from institutions, businesses, and individual investors alike. To this end, the FSRA continues to prioritize strong governance, effective oversight, and enhanced market transparency.
Throughout this article, the SALVUS Crypto-Assets Licensing team shares valuable information for establishing a Virtual Asset Service Provider (VASP) in Abu Dhabi, as follows:
1. What is a virtual asset?
2. Which virtual asset activities are regulated by the FSRA?
3. Regulatory Fees and Capital Requirements
4. Application Timeframe
5. How SALVUS can assist your FSRA application
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1. What is a virtual asset?
A virtual asset is a digital representation of value that can be exchanged electronically and typically functions as a medium of exchange, a unit of account, or a store of value. However, it does not hold the status of legal tender in any jurisdiction. Virtual assets are not issued or guaranteed by any government authority; instead, they derive their value and utility from mutual agreement within the user community. They are fundamentally different from both fiat currency and electronic money, operating independently of traditional financial systems.
2. Which virtual asset activities are regulated by the FSRA?
Businesses that are currently involved in or plan to engage in virtual asset activities within the ADGM must apply for and obtain the appropriate license according to the Financial Services and Markets Regulations (FSMR) provisions. The following list consists of the FSRA regulated activities relating to virtual assets:
- Dealing in Investments as Principal
- Buying or selling virtual assets as principal.
- Dealing in Investments as Agent
- Buying or selling virtual assets as agent.
- Arranging Deals in Investments
- Making arrangements with a view to another person buying or selling a specified virtual asset.
- Making arrangements with a view to another person who participates in the arrangements buying or selling a specified virtual asset.
- Advising on Investments or Credit
- Advice on the merits of buying or selling a virtual asset.
- Providing Custody
- Safeguarding virtual assets.
- Administering virtual assets for safeguarding.
- Operating a Multilateral Trading Facility (MTF)
- The operation of a Multilateral Trading Facility on which virtual assets are traded.
- Managing Assets
- Managing on a discretionary basis assets belonging to another person if the assets include any virtual asset.
The FSRA is an activities-based regulator. Thus, each entity is required to apply for a Financial Services Permission (FSP) covering only the regulated activities it proposes to conduct.
Please contact us at info@salvusfunds.com if you are interested in setting up a VASP in Abu Dhabi or providing virtual asset services in the United Arab Emirates
3. Regulatory Fees and Capital Requirements
Operating as a Virtual Asset Service Provider entails higher regulatory fees and capital requirements compared to other FSRA activities, recognizing the substantial risks posed. The following table provides the relevant information divided for VASP operating as MTF and for VASP providing intermediary activities.
| Regulatory Fee | MTF | MTF and Virtual Asset Custodian | Non-Custody Intermediary Activities | Non-Custody Intermediary Activities and Virtual Asset Custodian |
|---|---|---|---|---|
| FSRA Authorisation fee | 125,000 USD | 145,000 USD | 20,000 USD | 40,000 USD |
| FSRA Supervision fee | 60,000 USD | 75,000 USD | 15,000 USD | 30,000 USD |
| ADGM Registration fee | 15,000 USD | 15,000 USD | 15,000 USD | 15,000 USD |
| ADGM Annual Renewal fee | 13,100 USD | 13,100 USD | 13,100 USD | 13,100 USD |
| Capital requirements | 12-month operational expenses | 12-month operational expenses | 6-month operational expenses | 6-month operational expenses |
The application will not be regarded as submitted until the fee and any associated supplementary fee has been paid in full.
4. Application Timeframe
VASP regulated entities seeking to be authorised for conducting regulated activities relating to virtual assets shall be prepared to have a strong engagement with the FSRA.
The completion of the entire procedure, from the applicant’s first contact with the FSRA until going live is estimated between 12 to 24 months. This is based on the complexity of the proposed business model and activities and the applicant’s preparedness to fulfil the FSRA requirements.
5. How SALVUS can assist your FSRA application
The SALVUS Crypto-Assets Licensing team is composed of top-tier professionals with deep expertise and hands-on experience in the registration and licensing of diverse fintech ventures. Each client enquiry is handled through a structured project management methodology, allowing us to tailor the most suitable licensing framework and set of regulated activities aligned with your business goals.
From the initial stages, we facilitate direct engagement with the relevant regulatory authority and collaborate closely with your team to gather and organize all necessary documentation. Our goal is to ensure a seamless and efficient submission process by delivering a fully prepared and regulator-ready application.
Please contact us at info@salvusfunds.com if you are interested in setting up a VASP in Abu Dhabi or providing virtual asset services in the United Arab Emirates.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.