Dubai’s Virtual Asset Regulation Authority (VARA) has penalized 19 VASPs for conducting unauthorized virtual asset activities and violating VARA’s marketing regulations. The fines ranged from Ah100,000 to Ah600,000 ($27,000 to $163,000) depending on the severity of the violation.
AS Par Valas announcement, The Enforcement Department will continue to actively identify and investigate unauthorized activities and take action as necessary. VARA notes that this provides public notice to consumers, investors and institutions involved with unlicensed businesses that this involves significant financial, legal and reputational risks.
“Enforcement is a key component of maintaining the trust and stability of Dubai’s virtual asset ecosystem. These measures reinforce VARA’s mission to ensure that only companies that meet the highest standards of compliance and governance are permitted to operate,” the VARA executive department wrote. The UAE regulator added, “Unauthorized activities and unauthorized marketing are not tolerated. VARA will continue to take proactive measures to maintain transparency, protect investors and maintain the soundness of the market.”
All punished businesses have been instructed to immediately suspend operations and to cease further promotion of unauthorized virtual asset services within and outside Dubai.
VARA shared list The number of VASPs that were penalised include UAEC Digital Fintech FZCO, MORPHEUS SOFTWARE TECHNOLOGY FZE (FUZE), TON DLT Foundation, GLEEC DMCC, UEEX technology, Triple A Technologies, Hatom Labs, Hokk Finance and more.
In 2023, VARA in Dubai confirmed that the VA division had passed its deadline for obtaining its regulatory license. At the time, 18 virtual asset service providers with commercial licenses on the mainland under the Dubai Economic and Tourism Authority (DET) had been fined for failing to comply with VARA directives and regulatory guidance.
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