Dubai Regulator Cracks Down on 19 Crypto Firms for Operating without Licenses

Dubai’s Virtual Assets Regulatory Authority (VARA) has fined 19 companies for running crypto operations without proper licenses, marking one of the strongest enforcement actions yet in the region’s push for regulatory clarity and investor protection. The penalties, ranging from 100,000 to 600,000 dirhams ($27,000–$163,000), were accompanied by cease-and-desist orders, effectively shutting down unlicensed crypto activity across the emirate.

VARA said the crackdown is part of its mission to maintain trust and transparency in Dubai’s rapidly expanding digital asset ecosystem. “Enforcement is a critical component of maintaining stability,” the agency stated, emphasizing that only firms meeting strict compliance standards will be allowed to operate.

The 19 penalized firms were found to have offered crypto-related products and promotions without approval, violating VARA’s marketing and operational rules. The regulator’s 2024 marketing regulations require disclaimers on all crypto ads and prior authorization for promotions targeting residents, a move VARA CEO Matthew White said ensures “responsible delivery of services.”

According to Nicholas McNicholas, VARA’s head of enforcement, penalties are determined based on the seriousness and impact of each violation, including the scale of marketing and targeting of Dubai-based customers. He added that all sanctioned companies had a chance to appeal before penalties were finalized.

Dubai has long been viewed as a crypto-friendly hub, but VARA’s latest actions signal a firm stance on compliance. The regulator reminded investors that engaging with unlicensed platforms carries serious legal and financial risks. VARA continues to collaborate with the UAE’s Securities and Commodities Authority (SCA) to unify crypto oversight and ensure a safe, transparent market for both innovators and investors.