Dubai's Virtual Asset Regulatory Authority (VARA) has taken a significant step in regulating the crypto industry by ordering KuCoin to halt its unlicensed operations in the emirate. The regulator has warned that such operations pose critical risks to investors and has cited potential financial and legal consequences for consumers if the company resumes illegal activities.
VARA's move is part of a broader effort to strengthen crypto regulations in Dubai, which includes taking action against several other platforms for violating compliance rules. In October 2025, VARA had taken action against 19 crypto firms for offering unlicensed services and violating market rules, issuing fines ranging from AED 100,000 ($27,300) to AED 600,000 ($163,000).
Meanwhile, KuCoin is also facing regulatory struggles in Europe. The company obtained a Markets in Crypto Assets Regulation (MiCAR) license in Austria but was barred from onboarding new clients by the Austrian Financial Market Authority (FMA) due to alleged violations of anti-money laundering (AML) obligations.