Dubai's VARA Fines, Issues Cease-and-Desist Orders Against 7 Crypto Entities

Dubai’s VARA Fines, Issues Cease-and-Desist Orders Against 7 Crypto Entities

Dubai’s virtual-assets regulator issued cease-and-desist orders and fined seven unidentified crypto entities.

The emirate projects itself as a crypto hub, and has recently given licenses to crypto exchanges Binance, OKX and Crypto.com.

Dubai’s Virtual Assets Regulatory Authority (VARA), one of the bodies overseeing the crypto industry in the United Arab Emirates (UAE), said it fined seven “entities” for operating without the required licenses and for breaching marketing regulations.

The regulator also issued cease-and-desist orders to the entities, it announced on Wednesday.

VARA did not reveal the names of the entities, and said it is investigating them together with local authorities. The fines imposed range from 50,000 dirhams ($13,600) to 100,000 dirhams each.

“All entities in question have been instructed to immediately cease all activities and desist from undertaking any marketing or advertising of virtual asset services,” the statement said.

The action is rare for a region attempting to project itself as a global crypto hub. Dubai has recently given full regulatory approvals to crypto exchanges OKX, Binance and Crypto.com, among others. Earlier this month, the UAE exempted crypto transactions from paying value-added tax (VAT). In August, a court order appeared to give soft legitimacy to crypto being used to compensate a worker by a company.

VARA said its action was also a public warning to all to avoid engaging with any unlicensed firms.

Edited by Sheldon Reback.