The Virtual Assets Regulatory Authority (VARA) in Dubai has recently started fining firms and issued cessation notices to seven entities for engaging in business without the required licenses and non-compliance with marketing rules. 

This enforcement action highlights VARA's aim to protect the public and ensure the integrity of Dubai's rapidly developing virtual assets market.

The unnamed entities are now under investigation in cooperation with the local police. They have been penalized in sums of 50,000 to 100,000 dirhams per individual depending on the gravity and type of the offences committed. Moreover, these entities have been ordered to suspend all operations and stop promoting virtual asset services, among which fines have been imposed.

These recent moves by VARA are part of a process of building a secure and compliant economy of virtual assets in Dubai. The authority has clearly stated that only licensed firms under VARA can offer virtual asset services within the area. This strict approach is intended to reduce and prevent risky violations that may affect the reputation of consumers and investors.

The enforcement measures also serve as a public warning to deter engagement with any unlicensed firms offering similar services. VARA's rigorous approach is designed to ensure that the virtual assets market in Dubai remains a safe environment for legitimate operators, thereby enhancing consumer confidence and preserving market integrity.

After enforcing measures, VARA introduced new marketing rules, which were implemented on October 1, 2024. The VARA Marketing Guidance Document contains all the marketing guidelines that VASPs should follow to maintain compliance with the set marketing standards.