Dubai
Dubai’s cryptocurrency regulator is taking stronger steps to tackle unlicensed companies in the growing crypto market. This is part of a larger plan to improve oversight and ensure businesses comply with regulations in the fast-evolving digital asset market in the UAE.
The main goal of this crackdown is to protect investors and keep the financial system secure by targeting companies that do not follow established rules. The Dubai Financial Services Authority (DFSA) aims to create a safer environment for legitimate crypto businesses while building trust among users.
As part of this effort, the Virtual Assets Regulatory Authority (VARA) has issued cease-and-desist orders and fines to seven companies for operating without the required licenses and violating marketing regulations. VARA is working with local authorities to investigate further.
The VARA stated that this recent action serves as a public warning urging everyone to avoid dealing with unlicensed firms. Interacting with these companies can lead to significant financial and reputational risks, including potential legal issues. The VARA has stated that only companies licensed by the Authority are allowed to provide virtual asset services in or from Dubai.
A spokesperson from VARA’s Regulatory Affairs and Enforcement team emphasized that their main goal is to keep Dubai’s virtual asset market safe for consumers and investors while supporting compliant businesses. firms
“Our enforcement actions send a clear message: VARA will not tolerate any attempts to operate without the right licenses or market virtual asset services without authorization. Our marketing rules reflect Dubai’s commitment to transparency and protecting all stakeholders,” they said.
The companies affected by this enforcement have been ordered to stop all activities immediately and cease any marketing or advertising of virtual asset services. The fines for these violations range from AED 50,000 to AED 100,000 per company, depending on the severity of the offense.
Dubai is one of the top cities in the world that has attracted several crypto firms. Some of these firms include Binance, Bybit, OKX, Crypto.com, Standard Chartered, while a week ago, Ripple was granted license to operate as a financial service provider in Dubai.
