Dubai‘s crypto regulator imposed financial penalties and issued cease-and-desist orders to 19 firms found offering crypto services outside the official regulatory framework.
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VARA’s Enforcement Actions Against Unlicensed Crypto Firms
Following thorough investigations, VARA identified multiple entities violating licensing requirements and marketing regulations in the virtual asset sector.
The regulator enacted fines ranging from AED 100,000 to AED 600,000, scaling penalties according to severity and scope of offenses. Beyond financial sanctions, these companies received orders to immediately halt their unlicensed operations and desist from promoting unauthorized services within or from Dubai.
The public warning from VARA alerts consumers, investors, and institutions to the significant risks associated with unlicensed digital asset dealings.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” the regulator said. These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate.
Maintaining Market Integrity Through Regulation
Unlicensed activity and unauthorized marketing will not be tolerated. VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.”
You may also like: The Regulatory Playbook: Dubai Did It First, But Cyprus Can Still Do It Best
Only firms officially licensed by VARA are legally authorized to provide virtual asset services in the Dubai market, ensuring adherence to compliance and governance standards.
VARA’s intensified supervision reflects Dubai’s goal to cultivate a transparent, resilient, and well-regulated digital asset environment. Its licensing framework aims to balance innovation with strong safeguards, supporting sustainable growth while minimizing risks for all market participants.
Recently, the UAE formalized a cooperation agreementbetween its two main crypto regulators, the Securities and Commodities Authority and VARA, to unify the country's approach to virtual asset regulation.
This partnership aims to provide regulatory consistency across the UAE by aligning policies and oversight mechanisms between these authorities.
Keep reading: SCA and VARA Partnership Expands Dubai’s Tiered Licensing Model Across UAE
In Dubai, crypto regulation operates under a tiered licensing framework. The Dubai Financial Services Authority offers an Innovation Testing License, which permits firms to operate under limited conditions while seeking full approval.
The new agreement introduces shared licensing, registration, and supervision protocols for Virtual Asset Service Providers, including real-time data sharing and anti-money laundering coordination.
This article was written by Jared Kirui at www.financemagnates.com.
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