The post Dubai’s VARA Fines 19 Unlicensed Crypto Firms, Halts Operations appeared first on Coinpedia Fintech News
The UAE is becoming a major hub for the virtual asset market, with a growing number of people investing in digital assets. At the same time, authorities are tightening rules to keep the market safe, transparent, and investor-friendly.
Dubai has recently intensified its enforcement measures to maintain the integrity of its digital asset ecosystem.
VARA Cracks Down on Unlicensed Crypto Activities
The Virtual Assets Regulatory Authority (VARA) has fined 19 companies for carrying out unlicensed virtual asset activities and violating its marketing rules. The penalties included cease and desist orders and fines ranging from AED 100,000 to AED 600,000, depending on the severity of the breaches.
The regulator has also released the list of crypto firms that have been penalized for unlicensed activities. The list includes UAEC Digital Fintech FZCO, MORPHEUS SOFTWARE TECHNOLOGY FZE (FUZE), TON DLT Foundation, GLEEC DMCC, UEEX Technology, LBK Blockchain FZCO, Triple A Technologies, Hatom Labs, Hokk Finance, Mastercoin DMC, A to Z Globe DMCC, and others.
No Tolerance for Unlicensed Activity
The regulator warned that unlicensed crypto operators in Dubai carry serious financial, legal, and reputational risks. Only firms licensed by VARA are allowed to provide virtual asset services in or from the city.
VARA’s Regulatory Affairs and Enforcement Division has emphasized that enforcement is essential to maintain trust and stability in Dubai’s virtual asset market. It stressed that only firms meeting the highest standards of compliance and governance are allowed to operate and unlicensed activity and unauthorized marketing will not be tolerated.
“VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity,” the regulator added.
Immediate Halts for Fined Companies
All the fined companies have been ordered to stop their operations immediately and to halt promoting unlicensed crypto services in Dubai.
VARA also said that it is committed to keeping Dubai’s crypto market safe, transparent, and strong. Its licensing rules encourage innovation while protecting investors and everyone involved.
UAE’s Efforts to Unify Crypto Regulations
Earlier in August, the UAE took a big step toward unifying its crypto regulations.
The Securities and Commodities Authority (SCA) and Dubai’s VARA formed a strategic partnership to bring a consistent approach to regulate virtual assets.
UAE Leads in Crypto Adoption
The United Arab Emirates also emerged as one of the world’s leading nations in crypto adoption, according to a recent report by ApeX Protocol, with 25.3% of its population owning digital assets.
These developments highlight the country’s efforts to lead the space, enhance regulatory clarity and foster a secure environment for virtual asset activities.
