VARA Cracks Down on Seven Unlicensed Firms to Safeguard Dubai’s Virtual Asset Ecosystem
The Virtual Assets Regulatory Authority (VARA) is continuing its enforcement actions to protect Dubai’s virtual asset ecosystem by targeting unlicensed firms operating within its jurisdiction. As part of a broader enforcement initiative, VARA has issued cease-and-desist orders and fines to seven entities for operating without the required licenses and violating marketing regulations. Additional investigations are currently underway in collaboration with local authorities.
This public warning serves as VARA’s notification to all stakeholders to refrain from engaging with unlicensed firms. Interacting with such entities poses significant financial and reputational risks, as well as potential legal consequences for regulatory violations. Only firms licensed by VARA are permitted to offer virtual asset services in or from Dubai. The Authority remains committed to safeguarding consumers and investors while maintaining market integrity.
A statement from Regulatory Affairs and Enforcement at VARA emphasized, “Our priority is to ensure that Dubai’s virtual assets ecosystem remains secure for consumers and investors while being a progressive environment for compliant entities. Market enforcement actions send a reinforcing message: 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.”
All implicated entities have been instructed to immediately halt all activities and refrain from any marketing or advertising related to virtual asset services. The fines issued in this round range from AED 50,000 to AED 100,000 per entity, based on the nature and severity of the specific violations. VARA reminds the market that the virtual asset industry is strictly regulated, and licensed entities must comply with all requirements outlined in VARA’s published rules and framework.
