Dubai’s Virtual Asset Regulatory Authority (VARA) has penalized 19 VASPs for carrying out unlicensed virtual asset activities and for breaches of VARA’s marketing regulations. The penalties ranged from AED 100,000 to AED 600,000 ($27,000 to $163,000) depending on the seriousness of the violation.
As per VARA’s announcement, the Enforcement division continues to proactively identify and investigate unlicensed activity and take action as appropriate. VARA notes that this serves as a public reminder to consumers, investors, and institutions engaging with unlicensed operators that there is significant financial, legal, and reputational risk associated with doing so.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem. These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate,” wrote VARA’s enforcement division. The UAE regulator added, “Unlicensed activity and unauthorized marketing will not be tolerated. VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.”
All penalized firms have been directed to cease operations immediately and to desist from any further promotion of unlicensed virtual Asset services in or from Dubai.
VARA has shared the list of VASPs that have been penalized, including, UAEC Digital Fintech FZCO, MORPHEUS SOFTWARE TECHNOLOGY FZE (FUZE), TON DLT Foundation, GLEEC DMCC, UEEX technology, Triple A Technologies, Hatom Labs, Hokk Finance, and more
In 2023, Dubai’s VARA confirmed that the deadline for the VA sector to obtain a regulatory license had elapsed. At the time, 18 virtual asset service providers commercially licensed on the mainland under Dubai’s Department of Economy and Tourism (DET) had been issued fines for failing to comply with VARA’s directives and regulatory guidance.