Seven unlicensed entities have been given various monetary fines between $13,600 and $27,200 in Dubai’s crackdown on unregulated crypto firms, namely, living without licenses and contravening marketing regulations enforced by the Virtual Assets Regulatory Authority (VARA).
On October 9, VARA sent cease and desist orders to the businesses, saying they had violated marketing rules and had not gotten the appropriate licenses. However, the regulator did not name the sanctioned companies, urging the public rather than dealing with unlicensed firms and potential reputational, legal, and financial risks.
VARA Mandates Licensing For Crypto Operations
Dubai is the only place where licensed entities can service virtual assets.
The regulator said:
“VARA will not tolerate any attempts to operate without appropriate licenses, nor will we allow unauthorized marketing of virtual asset activities. Our marketing regulations further emphasize Dubai’s commitment to ensuring transparency and protecting stakeholder interests.”
VARA also ordered the fined companies to stop all crypto-related activities, including marketing and promotional activities involving digital assets.
Entities were also fined from 50,000 to 100,000 dirhams (£13,600 to £27,200). According to VARA’s Regulatory Affairs and Enforcement division, its mission is to preserve a safe and compliant environment for investments and trading and to provide the ideal environment for law-abiding organizations.
This follows VARA’s overall efforts to crack the whip on crypto marketing. On Sept. 26, the regulator ordered companies promoting investments in virtual assets to include a conspicuous warning that such investments are highly volatile and can lose their value.
New regulations harmonize VARA’s operations to foster transparency and trust in the market and are designed to ensure that we operate responsibly as virtual asset providers, said VARA CEO Matthew White.
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