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- VARA fines 19 unlicensed crypto companies, totaling up to $163K each.
- Marketing violations and unauthorized operations triggered sanctions.
- Only VARA-licensed firms are legally allowed to operate in Dubai.
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Dubai’s crypto regulator has intensified enforcement, signaling a zero-tolerance approach to unlicensed digital asset operations. On Tuesday, the Virtual Assets Regulatory Authority (VARA) announced fines and cease-and-desist orders against 19 companies operating without proper licensing.
The move underscores Dubai’s commitment to investor protection and maintaining market integrity in its rapidly growing crypto ecosystem.
VARA Enforces Compliance in Dubai’s Crypto Market
The sanctioned companies were found offering crypto-related services without VARA approval, including violating marketing regulations introduced in 2024. These rules require clear disclaimers on promotional materials and prior authorization before advertising to residents or citizens.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” said VARA’s Enforcement Division. All penalized firms were ordered to halt operations and stop promoting unlicensed services immediately. Fines ranged from 100,000 to 600,000 dirhams ($27,000–$163,000), depending on the severity of each violation.
How VARA Determines Penalties
VARA’s head of enforcement, Nicholas McNicholas, explained that fines are calculated based on the nature, seriousness, and impact of violations. Marketing penalties also consider the extent of targeting Dubai residents and any misleading claims regarding licensing. Companies have access to an independent appeal process before sanctions are published, ensuring fairness in enforcement.
Balancing Innovation With Safeguards
The UAE is globally recognized for crypto-friendly policies, but VARA emphasizes that licensing is essential to protect investors and ensure transparency. The regulator warns that interacting with unlicensed operators exposes individuals and institutions to legal, financial, and reputational risks.
Recent collaboration with the Securities and Commodities Authority (SCA) further strengthens regulatory oversight, aligning Dubai’s approach with nationwide crypto safeguards. VARA’s actions are a clear message: only licensed entities can legally operate in the emirate’s crypto market.
Dubai’s VARA continues to send a strong signal to the crypto industry: compliance is non-negotiable. By enforcing licensing rules and targeting unauthorized operations, Dubai aims to maintain a secure, transparent, and innovative digital asset ecosystem.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
