Dubai’s Regulator Targets Unlicensed Crypto Companies

Dubai’s crypto regulator has taken action against unregulated crypto companies and those that violate marketing regulations. The Virtual Assets Regulatory Authority (VARA) of Dubai issued fines and bans on seven companies on October 9 for operating without the necessary licenses and breaking marketing rules. VARA will continue to investigate in partnership with other local authorities, although the specific companies involved were not disclosed.

VARA has cautioned the public to avoid engaging with unlicensed crypto companies. The regulator emphasized that dealing with unregulated entities can pose risks to both individuals and institutions, including reputational and financial consequences. VARA stated that only licensed companies are authorized to provide virtual asset services in and from Dubai.

Additionally, VARA instructed the seven entities to halt all crypto-related activities, as well as any marketing and advertising campaigns related to digital assets. The regulator imposed fines ranging from 50,000 to 100,000 United Arab Emirates dirhams on each entity. VARA’s Regulatory Affairs and Enforcement Department reiterated their commitment to maintaining a secure crypto ecosystem in Dubai for compliant organizations, investors, and consumers.

Dubai has recently strengthened its regulations on crypto marketing following the regulator’s efforts to tighten the rules. VARA announced on September 26 that companies promoting investments in virtual assets must include a prominent disclaimer in their promotional materials. This disclaimer should highlight the risks associated with virtual assets, such as potential value loss and volatility. VARA CEO Matthew White stated that these regulations aim to ensure responsible services from virtual asset providers, fostering transparency and trust in the market.

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