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

As a researcher who has spent years studying and analyzing the complex world of cryptocurrencies and blockchain technology, I find myself constantly fascinated by the dynamic nature of this rapidly evolving industry. The recent actions taken by Dubai’s Virtual Assets Regulatory Authority (VARA) serve as a stark reminder that even in a region actively positioning itself as a global crypto hub, there’s no room for lawlessness or non-compliance with regulations.

In the United Arab Emirates, the Dubai Virtual Assets Regulatory Authority (VARA) has penalized seven businesses for operating without the necessary permits and violating marketing rules within the crypto industry.

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

VARA chose not to disclose the identities of the involved parties, instead opting to collaborate with local authorities in their investigation. The penalties for these entities can range anywhere from 50,000 AED ($13,600) up to 100,000 AED per instance.

The statement declared that everyone involved should stop all actions related to their virtual asset services, including marketing and advertisement, right away.

It’s unusual for a region aiming to be a leading crypto hub worldwide to take such steps. Notably, Dubai has granted complete regulatory clearance to crypto exchanges like OKX, Binance, and Crypto.com, along with others. This month, the UAE waived value-added tax (VAT) for crypto transactions. Additionally, in August, a court decision seemed to provide tacit approval for using cryptocurrency as payment for an employee by a company.

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