The Virtual Assets Regulatory Authority (VARA) in Dubai, a key regulator of the crypto industry in the United Arab Emirates, has announced that it has imposed fines on seven entities for operating without the necessary licenses and for violating marketing regulations. Alongside the fines, VARA has also issued cease-and-desist orders to these entities, as disclosed on Wednesday. The regulator has chosen not to disclose the identities of the entities in question and is currently conducting investigations in collaboration with local authorities.
The fines range from 50,000 dirhams ($13,600) to 100,000 dirhams for each entity. According to the statement, all entities involved have been instructed to immediately halt their activities and refrain from any further marketing or advertising of virtual asset services.
This enforcement action is noteworthy for a region that is actively seeking to establish itself as a major global hub for cryptocurrency. Recently, Dubai has granted full regulatory approvals to several major crypto exchanges, including OKX, Binance, and Crypto.com.
Additionally, the UAE has exempted crypto transactions from value-added tax (VAT), and there have been instances where courts have appeared to legitimize the use of cryptocurrency for certain transactions. VARA's actions serve as a public warning to avoid engaging with any unlicensed firms, emphasizing the importance of compliance with regulatory requirements.