Crypto News: Dubai’s VARA Cracks Down on KuCoin, Orders Halt to Unlicensed Operations

Key Highlights:

• According to the crypto news, VARA orders KuCoin to halt unlicensed crypto operations in Dubai.
• KuCoin faces EU regulatory setback over AML compliance issues in Austria.
• VARA-backed blockchain projects, like diamond tokenization with Ripple, await approval.

In the latest crypto news, Dubai’s crypto watchdog, the Virtual Asset Regulatory Authority (VARA), has cracked down on KuCoin. The regulator has ordered the crypto exchange to halt all operations in the emirate.

Notably, this development comes as VARA identified KuCoin as operating without proper licenses in the region. The regulator warned that such unlicensed operations pose critical risks to investors.

Crypto News: KuCoin Faces Scrutiny in Dubai

According to the latest crypto news, Dubai’s VARA has issued a market alert against Kucoin, a prominent crypto exchange. The warning is also applicable to Phoenixfin PTe Ltd, MEK Global Limited, and Peken Global Limited, which all operate under the KuCoin name.

VARA has reportedly found that the company has been operating in the region without proper licenses. Thus, the regulator claimed that KuCoin was misrepresenting its licensing status and providing services without approval.

As the mentioned companies do not have any licenses to operate in Dubai, they are ordered to cease further operations. The agency cited potential financial and legal risks for consumers if the company resumes illegal operations.

Regulatory Setbacks in Europe

In connection with this major crypto news, KuCoin is also facing regulatory struggles in Europe. In early 2026, KuCoin obtained a Markets in Crypto Assets Regulation (MiCAR) license in Austria.

This licence allows the company to operate as a crypto exchange across the European Union. However, in February 2026, the Austrian Financial Market Authority (FMA) barred KuCoin EU from onboarding new clients.

This restriction in Europe is due to the company’s alleged violation of regulatory compliance. The financial watchdog stated that the company lacked adequate compliance staff to meet anti-money laundering (AML) obligations.

According to the regulator, the company presented a threat to the EU financial system security because it failed to provide enough staff for transaction monitoring and AML rule enforcement.

The European setback that KuCoin experienced now joins its existing worldwide challenges. The situation shows how crypto exchanges receive greater regulatory scrutiny from international authorities, which mandates effective compliance work.

VARA Tightens Rules as Crypto Regulation in Dubai Strengthens

Significantly, VARA’s crackdown on KuCoin comes as part of Dubai’s strengthening crypto regulations. As part of its broader efforts to tackle growing crypto-related crimes, VARA is tightening its hold on the crypto companies.

The regulator has warned and acted against several crypto platforms, including KuCoin and MEXC. These platforms were mainly identified as violating compliance rules.

The regulator’s moves aim to protect investors from unlicensed platforms and ensure that all crypto businesses in Dubai follow proper rules and compliance standards

According to an October 2025 crypto news report, VARA had taken action against 19 crypto firms for offering unlicensed services and violating market rules. The regulator issued fines ranging from AED 100,000 ($27,300) to AED 600,000 ($163,000).

The team also ordered the companies to immediately stop their unlicensed operations, with penalties adjusted based on the seriousness of each violation.

In addition to increased scrutiny, VARA is also making major milestones in the crypto industry. A major crypto news linked to VARA had recently made headlines.

Billiton Diamond, in partnership with Ripple, is using XRP Ledger to tokenize physical diamonds. The platforms are awaiting VARA’s approval for the deal.