VARA Fines 19 Unlicensed Crypto Firms, Cracks Down on Unauthorized Marketing
VARA, Dubai's virtual asset regulator, has taken stern action against unlicensed crypto service providers in the UAE. Nineteen firms have been fined and ordered to cease operations, highlighting the importance of official licensing for virtual asset services in the Dubai market.
VARA warned consumers, investors, and institutions about the risks of dealing with unlicensed digital asset providers. Only officially licensed firms are authorized to offer virtual asset services in Dubai. The recent crackdown saw 19 firms penalized for violating licensing requirements and marketing services without proper authorization. Fines ranged from AED 100,000 to AED 600,000, depending on the severity and scope of offenses. The regulator has been actively licensing firms to ensure only compliant and well-governed operators are permitted in Dubai's virtual asset ecosystem.
VARA's latest move comes as part of a new cooperation agreement between the UAE's two main crypto regulators. This agreement introduces shared licensing, registration, and supervision protocols for Virtual Asset Service Providers, unifying the country's approach to virtual asset regulation.
VARA's actions serve as a strong reminder that unlicensed activity and unauthorized marketing will not be tolerated in the UAE. The regulator is committed to maintaining market integrity and safeguarding investors. Companies are urged to ensure they are officially licensed and operating within the bounds of the law.
