Dubai’s Virtual Assets Regulatory Authority (VARA) has issued cease-and-desist orders and fines to seven entities for operating without proper licenses and violating marketing rules.
The fines range from AED 50,000 ($13,612) to AED 100,000 ($27,225), based on the severity of the violations.
Although the companies were not named, the regulator emphasized that this action serves as a public warning against dealing with unlicensed firms, citing significant financial, reputational, and legal risks.
Dubai, known for its crypto-friendly environment and clear regulatory framework, is positioning itself as a top destination for crypto businesses.
However, entities offering virtual asset services in or from Dubai must secure a license from VARA, covering activities like Virtual Asset Issuance, Trading Platforms, and Custody Services.
VARA’s new regulations, effective October 1, 2024, also include strict marketing rules targeting transparency and fairness, applying to both local and foreign companies aiming at Dubai residents.
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