- VARA penalized 19 unlicensed digital assets firms in Dubai.
- All penalized firms are to cease operations immediately, in addition to fines.
- VARA warned stakeholders against patronizing unlicensed virtual asset companies.
Dubai’s Virtual Assets Regulatory Authority (VARA) has sanctioned 19 firms for operating without due licenses within its region. Following an investigation, VARA confirmed breaches of its Marketing and Promotion Regulations and issued cease-and-desist orders alongside financial penalties.
Each violation carried fines between AED 100,000 and AED 600,000, depending on the scope of activity and level of non-compliance.
Cease-and-Desist Orders and Investor Warning
The regulator directed the affected companies to halt operations immediately and warned investors to avoid engaging with any unlicensed virtual-asset service providers.
Meanwhile, VARA has informed the public that its activities toward scrutinizing the operations of digital asset firms are an ongoing concern. The agency’s enforcement division has promised to be proactive in identifying defaulters of its regulatory conditions and follow up with immediate actions.
Beware of illegal Virtual Asset Operators in Dubai
It is worth noting that, besides informing the public about developments within its ecosystem, VARA considers announcing the outcome of the latest investigation and the decision taken as a warning to operators in Dubai. It also serves as a reminder to consumers, investors, and institutions engaging with unlicensed operators, highlighting the significant financial, legal, and reputational risks associated with the process.
Related: Dubai’s VARA Fines Morpheus for AML and Internal Compliance Failures
In the meantime, VARA has informed the public that only entities holding its license can provide virtual asset services in and from Dubai. According to the agency, enforcing its standards is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem. It is a move that aligns with its mandate, which is to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate.
Broader Compliance Push in the UAE
Beyond pausing operations, VARA also banned the penalized firms from promoting unlicensed virtual asset services, in or from Dubai.
The agency reiterated its commitment to establishing a regulated, transparent, and resilient Virtual Asset marketplace, underpinned by a licensing framework designed to balance innovation with robust safeguards for all stakeholders.
Related: UAE Regulators SCA and VARA Sign Agreement for Unified Crypto Framework
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Source: https://coinedition.com/dubais-vara-cracks-down-on-unlicensed-crypto-operators/
