Dubai Fines 19 Unlicensed Crypto Firms Up To $160K
Dubai Regulator Fines 19 Unlicensed Crypto Firms Up To $160K As Oversight Tightens
Dubai’s Virtual Assets Regulatory Authority (VARA) has fined 19 crypto firms for operating without licenses and breaching marketing regulations, signaling an aggressive new phase of enforcement in one of the world’s leading digital asset hubs.
The penalties, ranging from AED 100,000 to AED 600,000 ($27,000 to $163,000), were announced Tuesday, with VARA saying the fines were calibrated based on the severity and scope of each violation. The regulator’s enforcement division continues to identify and investigate unlicensed operators across the emirate.
Crackdown On Unlicensed Operations And Misleading Marketing
According to VARA, all 19 companies have been ordered to cease operations immediately and halt promotion of unlicensed services. While the authority did not disclose company names, violations included unlicensed operations and unauthorized marketing activities.
VARA stated:
“Enforcement is a critical component of maintaining trust and stability in Dubai’s virtual asset ecosystem. These actions reinforce our mandate — ensuring that only firms meeting the highest standards of compliance and governance are permitted to operate.”
The regulator warned that unlicensed activity and unauthorized promotions will not be tolerated, emphasizing that only VARA-licensed entities are authorized to provide virtual asset services in or from Dubai.
Industry Welcomes Stronger Oversight
Henri Arslanian, founder of Nine Blocks Capital, described VARA’s enforcement actions as a positive step for the global crypto industry.
“This is an excellent development not only for Dubai but for the entire crypto ecosystem,” Arslanian said. “It deters bad actors while rewarding companies that have invested the effort and resources to operate by the rules.”
He also predicted that more enforcement actions would follow, especially in “technical and less visible areas” of the crypto space.
Dubai Balances Innovation With Compliance
Established in 2022, VARA oversees Dubai’s virtual asset market independently from the Dubai International Financial Centre (DIFC). The regulator was designed to promote innovation while ensuring investor protection and adherence to international compliance standards.
Although Dubai has cultivated a reputation as a crypto-friendly jurisdiction, authorities have recently tightened oversight to prevent unlicensed operators from exploiting the regulatory environment.
Major exchanges like Binance, Crypto.com, and OKX have already secured licenses under VARA’s supervision, reinforcing the city’s image as a credible and transparent crypto hub.
VARA’s marketing regulations, which the 19 firms violated, impose strict requirements on how digital asset services can be promoted to ensure consumer protection and prevent misleading campaigns.
Dubai’s Most Significant Enforcement To Date
This marks VARA’s most extensive enforcement action against unlicensed operators since its inception. The crackdown aligns with the UAE’s broader initiative to build a compliant and globally trusted digital asset ecosystem.
VARA warned consumers and investors about engaging with unlicensed platforms, highlighting financial, legal, and reputational risks associated with unauthorized entities.
As Dubai and Abu Dhabi compete to attract crypto businesses under separate regulatory regimes — VARA in Dubai and ADGM in Abu Dhabi — the UAE continues to position itself as a leading global jurisdiction for virtual assets.
However, Dubai faces competition from Singapore, Hong Kong, and Switzerland, which are pursuing similar strategies of fostering regulated crypto innovation.
Whether Dubai can strike the right balance between crypto-friendly policy and strict compliance will determine its long-term dominance in the global digital asset landscape.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.