The Dubai Virtual Asset Regulatory Authority (VARA) has commenced its enforcement program against unlicensed virtual asset providers in the region. In a press release today, the regulatory authority revealed that it imposed financial penalties on 19 firms for carrying out unlicensed Virtual activities following its investigation.Â
The Dubai VARA confirmed that virtual asset providers breaching its Marketing Regulations would face sanctions. As revealed, the sanction included a cease-and-desist order and fines ranging from AED 100,000 to AED 600,000, depending on the seriousness and scope of the violations.
The enforcement division of the Dubai Virtual Asset Regulatory Authority also revealed that it will continue to proactively identify and investigate unlicensed activity and take action as appropriate. VARA added that the announcement also serves as a public reminder to consumers, investors, and institutions to avoid carrying out business with unlicensed operators.
Dubai VARA Regulatory Affairs and Enforcement Division’s statement
Dubai VARA Regulatory Affairs and Enforcement Division while issuing its statement revealed that enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem. The division also added that these actions reinforce VARA’s mandate to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate in the region. It also announced its intolerance for unlicensed activity and unauthorized marketing activities in the region. Dubai revealed it plans to continue take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.
The Dubai VARA has also directed all sanctioned firms to cease operations and desist from any further promotion of unlicensed Virtual Asset services in the region. Meanwhile, the regulator also reaffirmed its commitment to providing a regulated, transparent, and resilient Virtual Asset marketplace. Dubai also plans to establish a safe space with a licensing framework designed to balance innovation with robust safeguards for all stakeholders.
It’s worth noting that this development comes barely eight months after the Dubai Financial Services Authority (DFSA) approved stablecoin, USDC and EURC as the recognized crypto token within the Dubai International Financial Centre (DIFC).
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