The Dubai Virtual Assets Regulatory Authority (VARA) has initiated a significant enforcement action, reinforcing its commitment to maintaining the integrity and stability of the Emirate’s burgeoning virtual asset ecosystem. The regulator has imposed financial penalties and sanctions on 19 firms found to be operating without the necessary licenses and in breach of marketing regulations.
Strengthening Dubai’s Regulatory Framework
This latest move by VARA underscores Dubai’s proactive approach to creating a secure and well-regulated environment for the virtual assets industry. The enforcement actions aim to protect consumers, investors, and institutions from the financial, legal, and reputational risks associated with engaging unlicensed operators, ensuring that only compliant firms are authorised to offer virtual asset services in or from Dubai.
Details of the Enforcement Action
Following comprehensive investigations, VARA’s Enforcement Division identified and penalised the firms for conducting unlicensed virtual asset activities. The sanctions issued include cease-and-desist orders and substantial fines ranging from AED 100,000 to AED 600,000, determined by the severity and scope of the violations. All penalised entities have been ordered to halt their operations and promotional activities immediately.
A Clear Message to the Market
A spokesperson from VARA’s Regulatory Affairs and Enforcement Division stated that such actions are a “critical component of maintaining trust and stability in Dubai’s virtual asset ecosystem.” The statement reinforces VARA’s mandate to permit only firms meeting the “highest standards of compliance and governance” to operate, sending a clear message that “unlicensed activity and unauthorised marketing will not be tolerated.” The authority’s Enforcement Division continues to actively monitor the market to identify and investigate non-compliant operations.
About VARA
The Dubai Virtual Assets Regulatory Authority (VARA) is the world’s first independent regulator for virtual assets. Established in March 2022, VARA is responsible for licensing and regulating the virtual asset sector across the Emirate of Dubai (excluding the Dubai International Financial Centre) and its free zone territories. Its mission is to create a progressive and secure legal framework for the virtual asset industry to foster innovation while ensuring consumer protection.
Source: Fintech News Middle East
