The Dubai Virtual Assets Regulatory Authority (VARA) has imposed fines on 19 cryptocurrency companies for conducting business without the proper license and for breaching marketing regulations. The penalties for individual firms ranged from $27,000 up to $163,000, with directives to immediately cease all non-compliant operations.
VARA emphasized the importance of striking a balance between fostering innovation in the crypto sector and enforcing strict compliance standards to safeguard investors.
“The enforcement of regulations is crucial to maintaining trust and stability within Dubai’s virtual assets ecosystem,” a VARA spokesperson stated. “These measures ensure that only companies adhering to the highest compliance and governance standards are allowed to operate.”
The regulatory body noted that this enforcement action forms part of its ongoing oversight practices in the rapidly growing digital assets market. Companies operating without a VARA license face significant legal, financial, and reputational risks, and all firms providing services in the Emirate must hold the appropriate license.
In 2024, VARA intensified its marketing regulations, requiring prior approval of promotional materials and clear disclaimers to promote transparency and responsible service provision. According to the regulator, these measures are designed to enhance investor protection while allowing the market to innovate safely.
This latest round of fines follows similar enforcement actions last October, when VARA penalized seven unlicensed firms. Dubai continues to demonstrate a commitment to combining blockchain innovation with strict regulatory oversight, aiming to support market transparency and investor confidence.
Earlier reports also noted that the Dubai Financial Services Authority (DFSA) recently approved the launch of the tokenized QCD Money Market Fund, signaling ongoing institutional development in the Emirate’s crypto sector.
