Dubai halts operations of 7 unlicensed crypto exchanges

The Dubai Virtual Assets Regulatory Authority (VARA) has taken action against seven cryptocurrency exchanges for operating without the necessary licenses.

On October 9, 2024, VARA issued cease-and-desist orders to these unlicensed entities and imposed fines for violating marketing regulations.

The regulator also warned the public about the risks of dealing with such unlicensed platforms, highlighting potential financial and reputational harm.

In its statement, VARA emphasised its ongoing efforts to protect consumers and investors within Dubai’s virtual assets ecosystem.

The regulator explained that engaging with unlicensed crypto businesses could expose users to legal consequences and significant risks.

VARA remains committed to ensuring that Dubai continues to be a secure environment for both consumers and compliant companies operating within the cryptocurrency space.

The enforcement actions reflect VARA's firm stance on maintaining regulatory compliance.

"Our priority is to ensure that Dubai’s virtual assets ecosystem remains secure for consumers and investors while being a progressive environment for compliant entities," a spokesperson from VARA’s Regulatory Affairs and Enforcement team stated.

Fines issued to the seven targeted exchanges ranged from $13,600 to over $27,000, with the penalties based on the nature and severity of each violation.

In addition, VARA indicated that further investigations are being carried out in collaboration with local authorities to prevent future breaches and ensure adherence to Dubai’s regulatory framework.