VARA Issues Alert Against MEXC Over Unlicensed Activity

Dubai’s digital asset regulator, the Virtual Assets Regulatory Authority (VARA), has issued an investor and marketplace alert regarding the crypto exchange MEXC, warning that the platform may be offering virtual asset services to residents of Dubai without the necessary regulatory approvals.

According to the alert, the companies MEXC Estonia OÜ and MEXC Global LTD, which operate under the brand MEXC and the domain mexc.com, have been instructed to cease and desist from conducting unlicensed virtual asset activities targeting Dubai residents.

The regulator stated that MEXC does not hold a license to provide virtual asset services in or from Dubai, meaning any such activities would fall outside the emirate’s regulatory framework.

The warning highlights that engaging with unlicensed providers may expose users to significant financial risks, as well as potential legal implications under the UAE’s virtual asset regulatory framework.

Reinforcing Dubai’s Licensing Requirements

The alert reiterates the requirements established under Dubai Law No. 4 of 2022, which created VARA as the dedicated authority responsible for supervising virtual asset activities in the emirate, excluding the Dubai International Financial Centre.

Under the law and related regulatory rules, any company offering virtual asset services to Dubai residents must obtain authorization from VARA before operating or marketing its services within the jurisdiction.

VARA emphasized that any promotion, advertising, or solicitation related to MEXC has not been approved, and the exchange is therefore not permitted to market or offer virtual asset services in Dubai.

Investor Protection and Market Integrity

The regulator urged investors to exercise caution when engaging with unregulated entities and recommended verifying the status of any service provider through VARA’s public register of licensed or approved virtual asset service providers.

The authority also invited members of the public to report any suspected unlicensed activity.

As global crypto exchanges continue to compete for access to regulated markets, Dubai has increasingly emphasized compliance and licensing as key pillars of its digital asset strategy. By issuing public alerts and enforcing its regulatory framework, VARA aims to strengthen investor protection while maintaining the integrity of the emirate’s growing virtual asset ecosystem.