Dubai’s Virtual Assets Regulatory Authority (VARA) has announced fines for seven entities operating without the necessary licenses and violating marketing regulations within the cryptocurrency sector. The fines, which range from 50,000 dirhams ($13,600) to 100,000 dirhams, were disclosed in a statement on Wednesday.
In addition to the fines, VARA issued cease-and-desist orders to the entities involved, whose names have not been disclosed. The authority is conducting an investigation in collaboration with local law enforcement.
The statement emphasized that all identified entities must immediately halt their operations and cease any marketing or advertising of virtual asset services.
This regulatory action is notable for a region that aims to establish itself as a leading global crypto hub. Recently, Dubai has granted full regulatory approvals to major crypto exchanges including OKX, Binance, and Crypto.com. Furthermore, the UAE has exempted crypto transactions from value-added tax (VAT) and a recent court ruling appeared to endorse the use of cryptocurrency for compensating workers.
VARA’s enforcement action serves as a public warning to discourage engagement with unlicensed firms in the rapidly evolving cryptocurrency landscape.
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