Dubai’s Virtual Assets Regulatory Authority (VARA) has taken strong action against 19 companies operating without licenses, issuing fines of up to $163,000 and enforcing stricter compliance measures to protect investors and maintain transparency in the digital asset market.
Strengthening Oversight of Dubai’s Crypto Ecosystem
In its latest announcement, VARA revealed that financial penalties and cease-and-desist orders were issued against the firms found to be running unlicensed crypto operations or violating marketing regulations. The regulator emphasized that these actions are part of its broader strategy to safeguard Dubai’s growing digital asset sector and curb illegal crypto activities.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” said VARA’s Enforcement Division. “Only firms meeting the highest standards of compliance and governance are permitted to operate.”
Penalties for Violations of Licensing and Marketing Rules
According to the regulator, the sanctioned companies were offering crypto-related services without approval and breached marketing disclosure requirements introduced in 2024. Those rules require all virtual asset service providers (VASPs) to obtain authorization before promoting their products and to include clear disclaimers on advertising materials.
VARA CEO Matthew White stated at the time that the framework ensures service providers “deliver their services responsibly,” fostering trust and transparency in the market.
Fines and Cease-and-Desist Orders
The regulator imposed fines ranging from 100,000 to 600,000 dirhams ($27,000–$163,000), depending on the seriousness of the violations. All entities were ordered to immediately halt operations and suspend any unlicensed promotional activity targeting Dubai residents.
“Unlicensed activity and unauthorized marketing will not be tolerated,” the Enforcement Division added. “VARA will continue to take proactive measures to protect investors and preserve market integrity.”
This marks the second major enforcement action by VARA in less than a year. In October 2024, the authority fined seven other unlicensed crypto firms between $13,600 and $27,200 for similar breaches.
Balancing Innovation with Investor Protection
While the United Arab Emirates continues to attract crypto businesses with its pro-innovation policies, VARA reiterated its commitment to maintaining clear regulatory standards. The authority’s framework aims to balance innovation with investor safeguards, ensuring that market growth does not come at the cost of compliance.
The regulator also reminded investors that dealing with unlicensed crypto operators poses significant legal, financial, and reputational risks. Only entities licensed by VARA are permitted to offer crypto trading, exchange, and custody services in or from Dubai.
Unified Approach to Crypto Regulation
This latest crackdown follows the August partnership between VARA and the Securities and Commodities Authority (SCA) to unify the UAE’s approach to virtual asset regulation. The collaboration underscores Dubai’s commitment to positioning itself as a global hub for regulated digital finance while ensuring investor confidence and market stability.
