Dubai’s Virtual Assets Regulatory Authority (VARA) has taken strict action against 19 digital asset firms for operating without proper licences, targeting violations of marketing rules including unapproved promotions and misleading disclaimers.
The fines ranged from AED 100,000 (approximately Rs. 24 lakh) to AED 600,000 (around Rs. 1.43 crore), reflecting the severity of each breach. These measures aim to protect investors and reduce risks associated with unlicensed crypto activities, supporting Dubai’s goal of a fully regulated virtual asset market.
VARA issued cease-and-desist orders to the penalised firms following investigations into unauthorised operations. The regulator emphasised that prior approval is mandatory for offering or promoting crypto services in the Dubai. This enforcement is part of VARA’s ongoing programme to eliminate unlicensed operators and mitigate legal and reputational risks in the growing digital asset sector.
Stricter marketing regulations for virtual asset service providers were introduced in 2024, requiring clear disclaimers and prior approval for promotional content to prevent misleading communication. Firms violating these rules faced immediate penalties and enforcement action. A similar crackdown in October 2024 saw seven companies fined for comparable breaches, establishing a precedent for VARA’s firm regulatory approach.
The crackdown aligns with broader regulatory upgrades announced earlier this year, which strengthened oversight and investor protection. Updated Dubai rules cover licensed crypto and Web3 activities, including margin trading, token distribution, advisory, custody, and exchange services. Providers are required to perform quarterly client risk assessments, verify detailed client information, and comply with clarified operational guidelines.
Ruben Bombardi, VARA’s General Counsel, said, “These updates reinforce the foundations of a responsible, scalable ecosystem.” The regulator stressed that only licensed entities are permitted to operate or promote crypto services in Dubai. Collaboration with the Securities and Commodities Authority aims to unify regulatory approaches across the UAE, balancing innovation with security while enhancing trust and transparency in the virtual asset ecosystem.
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