Dubai VARA Takes Action Against Unlicensed Crypto Companies

The Dubai Virtual Assets Regulatory Authority (VARA) recently took action against seven cryptocurrency businesses operating without proper licenses. The regulator issued cease-and-desist orders and levied fines on these entities for violating both licensing and marketing rules. VARA’s efforts focus on protecting consumers and maintaining a secure environment for the cryptocurrency market in Dubai.

Warning to Investors

In a public notice issued on October 9, VARA urged people to avoid dealing with unlicensed virtual asset companies. The regulator stressed the risks of engaging with these unlicensed businesses, highlighting potential financial losses and reputational damage. VARA’s statement made it clear that unlicensed activity poses significant risks not only to individuals but also to institutions. The authority continues to place consumer protection at the top of its agenda.

Ensuring Compliance and Safety

VARA’s enforcement team emphasized that Dubai’s virtual asset ecosystem should remain safe for both consumers and compliant businesses. They made it clear that attempts to operate without the necessary licenses or engage in unauthorized marketing will not be tolerated. The enforcement actions serve as a strong reminder to businesses in the space: compliance with local regulations is mandatory.

The Regulatory Affairs and Enforcement team commented:

“Our priority is to ensure that Dubai’s virtual assets ecosystem remains secure for consumers and investors while being a progressive environment for compliant entities. Market enforcement actions send a reinforcing message: VARA will not tolerate any attempts to operate without appropriate licenses, nor will we allow unauthorized marketing of virtual asset activities.”

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Fines and Further Investigations

The penalties imposed on the seven entities ranged from just over $13,600 to more than $27,000, depending on the nature and severity of their violations. The fines serve as a reminder that VARA takes unlicensed operations seriously and will act to prevent any harm to investors or institutions.

In addition to the fines, VARA is conducting further investigations in collaboration with local authorities. The goal is to ensure that any other companies engaging in similar practices are identified and dealt with accordingly.