Dubai VARA Fines 19 Crypto Firms for Operating Without Licences
Dubai’s Virtual Assets Regulatory Authority (VARA) has taken decisive action by fining 19 crypto firms operating without valid licences. The fines, ranging from AED 100,000 to AED 600,000, targeted breaches such as misleading promotions and non-compliant advertisements. This move highlights Dubai’s growing commitment to building a safer and more transparent digital asset ecosystem. Moreover, the enforcement aligns with ongoing efforts to protect investors and maintain market integrity in the fast-expanding crypto sector.
Stronger Oversight and Enforcement Measures
Regulators swiftly issued cease-and-desist orders after investigating firms found to be running unlicensed operations. They reiterated that all crypto-related services must receive prior approval before being offered or marketed in the UAE. These actions are part of a broader campaign designed to eliminate unregistered entities and reduce financial and reputational risks across the digital asset industry.
In addition, the regulator implemented stricter marketing rules in 2024. These require firms to provide accurate disclaimers and secure prior authorization before launching promotional campaigns. Consequently, entities found violating these rules faced immediate penalties. A similar crackdown occurred in October 2024 when seven companies were fined for comparable offences, reinforcing the authority’s consistent approach to enforcement.
New Compliance Framework for Virtual Assets
The latest wave of fines comes amid a series of regulatory upgrades aimed at modernizing Dubai’s crypto framework. Earlier this year, VARA introduced comprehensive changes covering licensed crypto and Web3 activities such as margin trading, custody, token distribution, and exchange operations. These reforms focus on reducing risk while enhancing investor protection.
Under the updated framework, service providers must conduct quarterly client risk assessments, verify client details thoroughly, and follow detailed operational protocols. Ruben Bombardi, the regulator’s General Counsel, stated that the reforms “reinforce the foundations of a responsible, scalable ecosystem.” Additionally, the regulator is collaborating with the Securities and Commodities Authority to ensure consistent oversight across the UAE.
Ultimately, Dubai aims to balance innovation with accountability. By enforcing stricter rules and maintaining transparency, the city continues to position itself as a global leader in responsible digital asset regulation.
