VARA Fines 19 Firms for Unlicensed Cryptocurrency Operations
- VARA fined 19 firms for carrying out unlicensed virtual asset operations in Dubai.
- The regulator issued cease-and-desist orders and heavy fines to protect market integrity.
- This move strengthens trust and ensures that licensed firms comply with Dubai’s laws.
The Dubai Virtual Assets Regulatory Authority (VARA) has intensified its enforcement drive by penalizing 19 firms found operating without authorization. The enforcement follows detailed investigations into entities engaged in unlicensed virtual asset activities and violations of VARA’s marketing regulations.
According to the statement by VARA published this week, the financial penalties ranged from AED 100,000 to AED 600,000, based on the extent of misconduct committed by individual firms. The regulator made cease-and-desist orders, demanding that the penalized parties cease all unlicensed virtual asset services at once in or out of Dubai. The Enforcement Division confirmed that these actions are part of an ongoing effort to identify, investigate, and curb unregulated activity in the sector.
VARA reminded consumers, investors, and institutions that interacting with unlicensed operators carries serious financial, legal, and reputational risks. Only entities approved by the authority are legally permitted to offer virtual asset services within Dubai. The enforcement drive marks one of the most assertive regulatory measures taken by the authority since its establishment in 2022.
In an official statement, VARA’s Regulatory Affairs and Enforcement Division said, “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.”
Strengthening Market Oversight
All penalized firms were ordered to stop operations and withdraw any promotional activities linked to unlicensed services. VARA reiterated its commitment to maintaining a transparent and resilient digital asset environment. The authority’s licensing framework aims to strike a balance between innovation and investor protection, as well as legal compliance.
The most recent penalties are the result of a series of inquiries into unlicensed activities involving virtual assets. The firms were fined for providing crypto-related services without a regulatory license and failing to comply with Dubai marketing laws. By 2024, VARA had become stricter on crypto advertising, requiring firms to disclose disclaimers and consult with it before advertising products or services.
At that time, VARA CEO Matthew White stated that these rules compel virtual asset service providers to “deliver their services responsibly.” He added that this framework enhances transparency and strengthens public trust in Dubai’s digital economy.
One of the firms publicly named in the latest enforcement list was the TON DLT Foundation, fined for unlicensed operations and marketing breaches. VARA confirmed that additional details of the penalized entities and enforcement outcomes would be published on its official website for public reference.
Related: Sui Teams Up with Dubai’s VARA to Support Crypto Startups
Sustaining Trust and Compliance
Dubai’s crypto-friendly environment continues to attract international interest, yet regulators remain cautious about ensuring compliance. VARA stated that its mission is to protect market integrity while promoting responsible innovation. The regulator has also urged investors to verify licenses through its online portal before engaging with any virtual asset firm.
“Unlicensed activity and unauthorized marketing will not be tolerated,” the Enforcement Division stated. “VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.”
According to market observers, seven crypto companies were fined by VARA in 2024 for the same violation, indicating a strong stance on compliance. The official website of the authority provides detailed enforcement documentation and notification of the regulations.
