Dubai’s crypto regulator has fined 19 companies for running crypto businesses without a license and breaking marketing rules. The fines range from AED 100,000 to AED 600,000, which is about $27,000 to $163,000. The regulator also ordered these companies to stop their operations immediately.
The Virtual Assets Regulatory Authority (VARA) said the fines target companies that offered crypto services without permission or advertised without approval. VARA aims to protect investors and make Dubai’s crypto market safe and fair.
According to the laws, only licensed companies that abide by the outlined regulations are permitted to operate. Unauthorized firms will be penalized if they engage in rule violations or market their services without prior sanction. This clearly indicates that Dubai is determined to keep the crypto market clean and trustworthy.
VARA said dealing with unlicensed crypto companies is risky, as investors and businesses could lose money or face legal problems. Stopping unlicensed companies also helps maintain confidence in Dubai’s growing crypto market.
In October 2024, VARA imposed fines on seven companies for similar rule-breaking. The regulator keeps checking for unlicensed crypto activities and will take action whenever necessary. They also work with the UAE Securities and Commodities Authority to make rules stronger and clearer.
Dubai's decision is a signal that the city intends to establish a safe environment for the crypto business. VARA's action against the unlicensed companies is an investor protection and a guarantee of a fair market for the licensed operators. Additionally, it sends a strong message to the global crypto companies, saying that they must comply with the regulations to be able to operate in Dubai.
Investors are advised to use only licensed crypto services to avoid problems. VARA’s action shows Dubai is serious about transparency, investor safety, and a regulated crypto market.
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