Dubai Regulator Cracks Down on Unlicensed Crypto Firms

Dubai’s Virtual Assets Regulatory Authority (VARA) has taken action against unregulated crypto companies and those violating its marketing rules. On October 9, VARA issued fines and cease-and-desist orders to seven businesses for non-compliance. They are collaborating with other local authorities on further investigations but did not disclose the specific companies affected.

The seven entities have been instructed to cease all crypto-related activities and any marketing or promotional efforts related to digital assets. VARA also imposed fines ranging from 50,000 ($13,600) to 100,000 ($27,200) United Arab Emirates dirhams per entity. Their Regulatory Affairs and Enforcement division emphasized their focus on maintaining a secure and progressive crypto ecosystem for investors and consumers.

In their announcement, VARA advised the public to avoid dealing with unlicensed firms, highlighting the reputational and financial risks involved. Engaging with unregulated entities may also result in legal consequences. VARA emphasized that only licensed firms are permitted to provide virtual asset services in and from Dubai. They stated:

VARA will not tolerate any attempts to operate without appropriate licenses, nor will we allow unauthorized marketing of virtual asset activities. Our marketing regulations further emphasize Dubai’s commitment to ensuring transparency and always protecting stakeholder interests.

Sentiment: Neutral