Dubai’s Crypto Regulator has fined 19 companies operating without a license, demonstrating its continued push to tighten oversight and protect investors.
On Tuesday, Dubai’s Virtual Assets Regulatory Authority (VARA) announced that it had issued financial penalties and cease-and-desist orders against 19 companies found to be operating outside its regulatory boundaries.
Vara said the sanctions are part of continued efforts to protect the emirate’s burgeoning digital asset ecosystem and limit risks associated with unlicensed crypto activities.
“Enforcement is a key element in maintaining trust and stability in Dubai’s crypto asset ecosystem,” Vara’s Enforcement Department said. “These actions strengthen VARA’s mission: to ensure that only companies that meet the highest standards of compliance and governance are allowed to operate.”
Dubai regulators crack down on unlicensed companies
The enforcement action followed a series of investigations into unauthorized operations. According to the regulator, the companies were penalized for offering crypto-related services without authorization and violating VARA marketing rules.
In 2024, VARA tightened its rules regarding crypto marketing, requiring disclaimers to be placed on promotional materials. Regulators also required prior approval before promoting products and services to citizens and residents.
At the time, Vara CEO Matthew White added that this would force virtual asset service providers (VASPs) to “deliver their services responsibly” and promote transparency and trust in the market.
All penalized entities were directed to immediately cease operations and cease promotion of unlicensed services within or from Dubai. These entities also received fines ranging from 100,000 to 600,000 dirhams ($27,000 to $163,000), depending on the severity and scope of each violation.
“Unauthorized activity and fraudulent marketing will not be tolerated,” Vara’s executive team said. “VARA continues to take proactive steps to maintain transparency, protect investors, and maintain market integrity.”
The move follows a similar enforcement action in October 2024, in which the regulator fined seven licensed crypto companies between $13,600 and $27,200 and issued cease and desist orders for violating regulations.
Related: RAK properties in UAE to accept Bitcoin, other crypto for real estate transactions
Balancing innovation and safeguards
While the UAE is known to be a crypto-friendly jurisdiction, Dubai’s crypto regulator reminded the public that it is committed to “regulating the market and maintaining transparency through a licensing framework that aims to balance innovation with robust protective guards and innovation for all stakeholders.”
Vara added that this announcement serves as a general reminder to consumers, investors, and institutions that engaging with unlicensed crypto operators poses significant legal, financial, and reputational risks. The regulator reiterated that only vara-licensed entities are allowed to offer crypto services in or from Dubai.
The move follows regulatory developments in the region. On August 7, VARA partnered with the Securities and Commodities Authority (SCA) to unify the country’s approach to crypto regulation.
Vara granted Cointelegraph’s request for comment.
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