Dubai’s crypto regulator fined 19 companies for operating without licenses, signaling a continued push to strengthen oversight and protect investors.
On Tuesday, Dubai’s Virtual Assets Regulatory Authority (VARA) announced that it had issued financial penalties and cease-and-desist orders against 19 companies found to be operating outside its regulatory perimeter.
VARA said the sanctions were part of its ongoing effort to safeguard the emirate’s fast-growing digital asset ecosystem and limit the risks of unlicensed crypto activities.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” said VARA’s Enforcement Division. “These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate.”
Dubai regulator cracks down on unlicensed companies
The enforcement actions followed a series of investigations into unauthorized operations. According to the regulator, the companies were penalized for offering crypto-related services without approval and for violating VARA’s marketing rules.
In 2024, VARA tightened its rules on crypto marketing, requiring disclaimers to be placed on promotional materials. The regulator also required prior authorization before promoting products and services to citizens and residents.
At the time, VARA CEO Matthew White said this compels virtual asset service providers (VASPs) to “deliver their services responsibly,” adding that it fosters transparency and trust in the market.
All penalized entities were directed to immediately cease their operations and halt any promotion of unlicensed services in or from Dubai. These entities were also fined from 100,000 to 600,000 dirhams ($27,000–$163,000), depending on the seriousness and scope of each violation.
“Unlicensed activity and unauthorised marketing will not be tolerated,” said VARA’s Enforcement Division. “VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.”
The move follows a similar enforcement action in October 2024, when the regulator fined seven unlicensed crypto entities between $13,600 and $27,200 and issued cease-and-desist orders for breaching its rules.
Related: UAE’s RAK Properties to accept Bitcoin, other cryptos for real estate deals
Balancing innovation with safeguards
While the United Arab Emirates is known to be a crypto-friendly jurisdiction, Dubai’s crypto regulator reminded the public that it’s committed to keeping the market regulated and transparent through its licensing framework that aims to “balance innovation with robust safeguards for all stakeholders.”
VARA added that the announcement served as a public reminder to consumers, investors and institutions that engaging with unlicensed crypto operators carries significant legal, financial and reputational risks. The regulator reiterated that only VARA-licensed entities are allowed to offer crypto services in or from Dubai.
The move followed other regulatory developments in the region. On Aug. 7, VARA partnered with the Securities and Commodities Authority (SCA) to unify the country’s approach to crypto regulations.
VARA acknowledged Cointelegraph’s request for comments.
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