365Crypto
Dubai’s crypto watchdog has taken serious action against rule-breakers. The Virtual Assets Regulatory Authority (VARA) fined 19 companies for running without licenses and violating marketing laws.
### VARA Cracks Down on Rogue Operators
The enforcement move is part of VARA’s effort to clean up Dubai’s fast-growing crypto sector. Officials say the goal is to protect investors and ensure only compliant firms operate.
“Keeping trust in Dubai’s virtual asset market is key,” said VARA’s enforcement team. “Only firms meeting top standards will be allowed to operate.”
### Unlicensed Marketing Under Fire
VARA found that the 19 companies offered crypto services and promotions without approval. In 2024, the regulator tightened rules, forcing firms to include disclaimers on ads and get permission before promoting to residents.
Fines ranged from 100,000 to 600,000 dirhams ($27,000–$163,000), depending on how serious each violation was. All firms were told to stop operations immediately.
### How VARA Decides Fines
Nicholas McNicholas, VARA’s head of enforcement, explained that fines depend on the nature, scale, and impact of the violation. Marketing fines also consider how much the campaign targeted Dubai users and whether the firm appeared licensed.
### Balancing Growth and Oversight
The UAE may welcome innovation, but VARA reminds everyone that only licensed entities can operate in or from Dubai. It’s a clear message: follow the rules or face penalties.
VARA also warned investors to stay away from unlicensed operators, noting that doing business with them poses financial and reputational risks.
*(Footing: VARA — Virtual Assets Regulatory Authority, the body overseeing Dubai’s crypto sector. Dirham — UAE currency, AED.)*
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