VARA Penalizes 19 Unlicensed Firms, Issues Public Warning

Dubai’s Virtual Assets Regulatory Authority (VARA) has intensified its enforcement measures, announcing penalties against 19 unlicensed firms operating in the emirate’s virtual asset sector. The announcement, published on October 7, 2025, reinforces VARA’s role as the sole regulator of virtual assets in Dubai, excluding entities registered in the Dubai International Financial Centre (DIFC).

The regulator said the action comes after a series of investigations uncovered violations ranging from unlicensed activity to breaches of marketing rules.

Fines and Sanctions

According to VARA, the sanctioned entities face cease-and-desist orders along with financial penalties ranging between AED 100,000 and AED 600,000. The severity of the fines was determined based on the scope and impact of each violation.

In addition to fines, VARA emphasized that penalized firms must immediately halt their activities and refrain from any form of advertising or promotion related to virtual assets.

Non-Disclosure of Names

While VARA confirmed that 19 firms have been penalized, the regulator did not make the names of these entities public. VARA informed the relevant companies directly but chose not to release their identities in the enforcement notice.

At the time of publication, VARA had not disclosed the names of the penalized firms. Since then, the regulator has published the full enforcement list. Unlock Blockchain has covered the details, including firms such as Triple A, TON DLT Foundation, and LBank, in a follow-up article available [link].

Updated 13:03 UAE time.

Consumer Protection Warning

The public warning issued alongside the penalties underscores the risks of dealing with unlicensed firms. VARA highlighted that engaging with unauthorized service providers exposes investors, consumers, and institutions to financial, legal, and reputational risks.

The regulator reiterated that all entities offering virtual asset services “in or from Dubai” must secure the appropriate license from VARA, regardless of whether their operations are physical, digital, or remote.

Regulatory Context

Since its establishment in 2022, VARA has been tasked with overseeing Dubai’s virtual asset industry, developing a framework that balances innovation with market integrity. Its rules cover licensing, marketing, anti-money laundering, and consumer protection.

The latest enforcement signals a stricter phase in Dubai’s regulatory evolution, as the emirate positions itself as a global hub for digital assets. By clamping down on unlicensed firms, VARA is seeking to create a level playing field for licensed operators while protecting market credibility.

The decision to penalize 19 firms reflects VARA’s continued commitment to consumer protection and market integrity. For companies active in the UAE’s digital asset ecosystem, the message is clear: licensing and adherence to VARA’s framework are essential to operating in or from Dubai.