Dubai’s Virtual Assets Regulatory Authority (VARA) has intensified its efforts to safeguard the emirate’s fast-growing digital asset ecosystem, announcing financial penalties and cease-and-desist orders against 19 companies for operating without proper licenses.
The move, announced Tuesday, signals a continued push by VARA to strengthen oversight and protect investors by limiting the risks associated with unlicensed crypto activities.
VARA stated that the sanctions followed a series of investigations into unauthorized operations. The companies were penalized for offering crypto-related services without approval and for violating the regulator’s marketing rules.
The fines issued range from 100,000 to 600,000 dirhams ($27,000 to $163,000), with the amount depending on the seriousness and scope of each violation. All penalized entities have been directed to immediately cease operations and halt any promotion of unlicensed services in or from Dubai.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” said VARA’s Enforcement Division. “These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate.”
The regulator’s enforcement actions come after it tightened its rules on crypto marketing in 2024, requiring disclaimers on promotional materials and prior authorization before products and services could be promoted to citizens and residents.
At the time, VARA CEO Matthew White emphasized that the stricter rules were intended to compel virtual asset service providers (VASPs) to “deliver their services responsibly,” fostering transparency and trust in the market.
VARA’s Enforcement Division stressed that “Unlicensed activity and unauthorized marketing will not be tolerated.” The regulator added that it will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.
This latest round of penalties follows a similar action in October 2024, when VARA fined seven other unlicensed crypto entities and issued cease-and-desist orders.
