VARA Bans KuCoin in Dubai Following Major Licensing Breaches

Dubai's VARA has banned KuCoin for operating without a license, part of a global regulatory crackdown involving millions in fines across the US and Canada.

The exchange faced scrutiny regarding its regulatory status, which further compounded the violation. The order targets four legal entities: Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH. These companies are now prohibited from all marketing, advertising, and customer solicitation related to the KuCoin brand in Dubai.

What the Law Requires

Under Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must hold a valid license from VARA to operate within the emirate. KuCoin has never obtained such a license.

This enforcement action is part of a broader regulatory campaign across Dubai and the United Arab Emirates. In 2025 alone, VARA sanctioned 19 unlicensed companies, issuing fines ranging from AED 100,000 to AED 600,000. However, penalties became significantly stricter in 2025. The new Federal Decree No. 6 of 2025 provides for fines up to 500 million dirhams and even imprisonment for unlicensed financial activities.

Impact on Users

For KuCoin users in Dubai, the implications are immediate. VARA requires that all trading, deposits, and use of the platform be terminated.

Critically, because KuCoin lacks a VARA license, customers do not have access to the investor protection mechanisms and dispute resolution services offered by licensed exchanges like Binance and Coinbase. The regulator warned that continued use of the platform could result in financial losses and potential legal liability.

Global Pressure on KuCoin

The measure in Dubai arrives amid mounting regulatory pressure on KuCoin worldwide. In January 2025, the exchange pleaded guilty to charges of anti-money laundering violations in the United States and paid approximately $297 million in fines, agreeing to withdraw from the American market for a minimum of two years.

Later in 2025, the Canadian regulator FINTRAC imposed a fine of 19.6 million Canadian dollars for registration violations. In February 2026, the financial regulator of Austria also prohibited KuCoin EU from accepting new customers.

Since January 2025, the company has been led by new CEO BC Wong, who promised a “compliance-first” strategy. However, recent regulatory actions suggest that the transition toward stricter compliance continues to face serious challenges.