Dubai Intensifies Crypto Oversight, Fines Seven Unlicensed Firms

Dubai's Virtual Assets Regulatory Authority (VARA) is intensifying its oversight of cryptocurrency businesses, targeting those that are unlicensed or flouting marketing regulations.

On October 9, the authority issued fines and cease-and-desist orders to seven firms for operating without the necessary permits and for breaching advertising guidelines.

While VARA has not disclosed the names of the sanctioned companies, it announced plans for further investigations in collaboration with local authorities. The regulator has also advised the public to steer clear of unlicensed crypto firms, warning that engaging with them could lead to financial and reputational risks, as well as potential legal repercussions.

In its statement, VARA emphasized that only licensed entities are permitted to offer virtual asset services in Dubai. The authority noted that it will take a firm stance against unauthorized operations and marketing of virtual assets, reaffirming its commitment to transparency and protecting stakeholder interests.

Each of the seven entities received fines ranging from 50,000 AED (about $13,600) to 100,000 AED (around $27,200) and was ordered to cease all crypto-related activities and marketing promotions.