- VARA issued cease-and-desist orders to seven unauthorized crypto organizations.
- The move is intended to protect investors while ensuring compliance in Dubai’s crypto market.
Dubai’s cryptocurrency regulator is stepping up efforts to combat unauthorized enterprises in the rapidly growing crypto industry. This program contributes to the overall effort to enhance tracking and compliance with legislation. It specifically addresses the dynamic nature of the UAE’s digital asset market.
The fundamental goal of this crackdown is to protect investors and maintain a stable financial system by punishing organizations that fail to follow existing standards. The Dubai Financial Services Authority (DFSA) is dedicated to making the cryptocurrency industry safer for legitimate enterprises while also cultivating user trust.
As part of this plan of action, the Virtual Assets Regulatory Authority (VARA) has issued cease-and-desist orders and fines to seven organizations that operate without necessary licenses and violate marketing restrictions. VARA has joined forces with local authorities to conduct additional investigations into these firms.
Strengthening Crypto Regulations to Protect Investors
This program enhances tracking and compliance with legislation. It specifically targets the dynamic nature of the UAE’s digital asset market. Interacting with such companies can result in severe financial and reputational concerns, as well as potential legal implications. VARA highlighted that only companies regulated by the government are able to provide virtual asset services in or from Dubai.
A representative from VARA’s Regulatory Affairs and Enforcement team emphasized the regulator’s commitment to maintaining a safe virtual asset market. This focus aims to protect consumers and investors alike. They are also dedicated to supporting compliant enterprises. Our enforcement actions send a clear message that VARA will not tolerate attempts to operate without the necessary permits. Additionally, we will not allow any virtual asset services to be offered without proper authorization. The spokeswoman noted that our marketing standards reflect Dubai’s commitment to transparency and the protection of all stakeholders.
The companies targeted by this enforcement action have been told to cease all operations immediately and to discontinue any marketing or advertising linked to virtual asset services. Fines for these offenses range between AED 50,000 and AED 100,000 per company, depending on the severity of the offense.
Dubai has developed as a key global hub for cryptocurrency companies attracting notable companies such as Binance, Bybit, OKX, Crypto.com, and Standard Chartered. Ripple was recently granted a license to operate as a financial services provider in Dubai, showing the city’s allure to the cryptocurrency industry.
