Dubai Regulator Takes Action Against Unlicensed Crypto Exchanges

The Virtual Asset Regulatory Authority (VARA) of Dubai has taken action against two cryptocurrency exchanges operating in the emirate without proper licenses.

According to a recent announcement, VARA issued cease and desist orders to KuCoin and MEXC, citing that they were providing trading services to Dubai residents without necessary regulatory approvals. The regulator emphasized that engaging with unlicensed companies poses significant financial risks and potential legal consequences for violating regulatory requirements or criminal laws.

VARA introduced its comprehensive regulatory framework four years ago, requiring all service providers to obtain licenses to operate legally in the jurisdiction. The authority's statement on KuCoin specifically notes that investors and consumers must be aware of these risks and take necessary precautions when interacting with unlicensed companies.