The Virtual Assets Regulatory Authority (VARA) in Dubai has taken action against four entities linked to the cryptocurrency exchange KuCoin. According to VARA, these entities - Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH - were operating without proper authorization in the emirate.
These entities were found to be commercially advertising under the KuCoin name, which is not permitted under Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111/2022. The law requires all virtual asset service providers to obtain regulatory approval before operating in the jurisdiction.
VARA has warned that engaging with these non-compliant entities could expose investors to financial risks and potential legal consequences under the laws of the United Arab Emirates. As a result, the regulator advises consumers and investors in Dubai to avoid using KuCoin for virtual asset services.