Dubai Regulator Orders 7 Unlicensed Crypto Exchanges to Stop Operations
The Dubai Virtual Assets Regulatory Authority (VARA) has taken action against seven unlicensed crypto entities for operating without licenses and violating marketing regulations. VARA has issued cease-and-desist orders and imposed fines on these entities. The regulator warned the public of the risks associated with dealing with unlicensed crypto businesses, emphasizing the potential for financial and reputational harm.
Protecting Crypto Investors
The Dubai Virtual Assets Regulatory Authority (VARA) has issued cease-and-desist orders against seven entities accused of operating without licenses and violating marketing regulations. In a warning issued on Oct. 9, VARA advised the public to avoid dealing with the unnamed and unlicensed virtual asset businesses.
VARA argued that dealing with such entities could expose users and institutions to financial and reputational risks, as well as potential legal consequences. The regulator added that it would continue to prioritize protecting consumers and investors.
Commenting on VARA’s latest enforcement action against unlicensed operators, the regulator’s Regulatory Affairs and Enforcement team said:
Our priority is to ensure that Dubai’s virtual assets ecosystem remains secure for consumers and investors while being a progressive environment for compliant entities. Market enforcement actions send a reinforcing message: VARA will not tolerate any attempts to operate without appropriate licenses, nor will we allow unauthorized marketing of virtual asset activities.
VARA added that its marketing regulations further emphasize Dubai’s commitment to ensuring transparency and always protecting stakeholder interests.
According to the regulator, the targeted entities have been fined amounts ranging from just over $13,600 to more than $27,000 each. VARA clarified that the severity of the penalties imposed was dependent on the nature and extent of the violations.
Meanwhile, the statement also revealed that VARA is conducting further investigations in conjunction with local authorities.
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