The Dubai Virtual Assets Regulatory Authority (VARA) has taken enforcement action against Morpheus Software Technology FZE, which operates as Fuze, following a regulatory investigation that uncovered multiple compliance failures. The company has accepted the findings and will now implement a remediation plan under VARA’s supervision.
Key Highlights
The enforcement action follows an investigation that identified several breaches:
- Company: Morpheus Software Technology FZE (Fuze).
- Regulator: Dubai Virtual Assets Regulatory Authority (VARA).
- Action: An enforcement action including an unspecified financial penalty.
- Breaches: Deficiencies in its Anti-Money Laundering (AML) program, conducting unlicensed virtual asset activity, and failure to disclose material information.
Investigation Uncovers Multiple Compliance Failures
The investigation into Fuze, which began on April 15, 2025, identified significant deficiencies in the company’s internal systems and controls. Specifically, VARA found weaknesses in Fuze’s Anti-Money Laundering (AML) program, as well as its overall governance and compliance frameworks.
Unlicensed Activity and Failure to Disclose
In addition to the internal control issues, the investigation found that the company had deliberately conducted unlicensed virtual asset activity, a direct breach of the license it was granted on October 19, 2023. The company also failed to disclose material information to the regulator.
Path to Remediation
Fuze has accepted VARA’s findings and has submitted a plan to remedy the identified breaches. To ensure the plan is implemented correctly, VARA will appoint a “Skilled Person” to oversee the process. The regulator will continue to supervise Fuze to ensure ongoing compliance, marketplace security, and consumer protection.
Source: Fintechnews Middle East
