Dubai cracks down on 19 unlicensed cryptocurrency operators

Dubai's cryptocurrency regulatory agency has imposed slashing on 19 companies for operating without a license, reflecting its ongoing efforts to enhance oversight and protect investor rights.

On Tuesday, the Dubai Virtual Assets Regulatory Authority (VARA) announced that they had implemented financial measures and a cessation order against 19 companies found to be operating outside of their regulatory scope.

VARA stated that these punitive measures are part of their ongoing efforts to protect the rapidly growing digital asset ecosystem of the emirate, while also mitigating risks associated with unlicensed cryptocurrency activities.

“Enforcement is a crucial factor in maintaining trust and stability in Dubai's Virtual Asset ecosystem,” said a representative from VARA's Enforcement Department. “These actions reinforce VARA's mission: to ensure that only companies meeting the highest standards of compliance and governance are allowed to operate.”

Dubai tightens control over unlicensed companies

These enforcement measures are being implemented following a series of investigations into illicit activities. According to information from the regulatory authority, these companies have been slashed for providing cryptocurrency-related services without the necessary approvals and violating VARA's marketing rules.

In 2024, VARA tightened regulations on cryptocurrency marketing, requiring disclaimers to be included in advertising materials. The regulatory authority also requires providers to obtain permission before promoting products and services to citizens and residents.

At that time, VARA's CEO, Matthew White, emphasized that this forces virtual asset service providers (VASPs) to “provide services responsibly,” while asserting that this will promote transparency and trust in the market.

All entities that are slashed are required to immediately cease operations and stop any unlicensed promotional activities in or from Dubai. These companies are also fined between 100,000 and 600,000 dirhams ( equivalent to 27,000–163,000 dollars ), depending on the severity and scope of each violation.

“Unlicensed activities and illegal marketing will not be accepted,” emphasized a representative from the VARA Enforcement Department. “VARA will continue to take proactive measures to maintain transparency, protect investors, and uphold the integrity of the market.”

This action was taken following a similar slashing in October 2024, when regulators penalized seven unlicensed cryptocurrency entities with fines ranging from $13,600 to $27,200 and issued a cease-and-desist order for violations of its rules.

Balancing innovation with protective measures

Although the United Arab Emirates is known as a cryptocurrency-friendly region, Dubai's cryptocurrency regulator has emphasized its commitment to maintaining a regulated and transparent market through a licensing framework aimed at “balancing innovation with robust protections for all stakeholders.”

VARA also stated that this announcement serves to remind the public, investors, and organizations that participating in the activities of unlicensed cryptocurrency operators poses significant legal, financial, and reputational risks. The regulatory authority emphasized that only entities licensed by VARA are permitted to provide cryptocurrency services in or from Dubai.

This action takes place against the backdrop of other regulatory developments in the region. On August 7, VARA collaborated with the Securities and Commodities Authority (SCA) to unify the regulatory approach to cryptocurrency nationwide.

Mr. Teacher