Dubai’s Crypto Watchdog Issues Cease-and-Desist Orders to 7 Firms

2024-10-10 19:54:57

Crypto Regulation Dubai UAE

The enforcement action imposed fines ranging from AED 50,000 to AED 100,000 on each entity, based on the severity of their violations. Last updated:

October 10, 2024 23:54 EDT

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Author Profile

Copied

Last updated:

October 10, 2024 23:54 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Dubai’s virtual assets regulator on Wednesday said it issued cease-and-desist orders and fined seven entities for operating without proper licenses and violating marketing rules.

However, the Virtual Assets Regulatory Authority (VARA) did not name the companies involved. The regulator said this announcement serves as a public warning to avoid dealing with unlicensed firms.

**“**Interacting with such entities exposes individuals and institutions to significant financial and reputational risk, with potential legal consequences for regulatory breach,” it said.

Dubai’s VARA Imposes $13K–$27K Fines on 7 Crypto Entities in Rare Enforcement Move

In this enforcement action, the fines imposed on each entity were between AED 50,000 ($13,612) and AED 100,000 ($27,225), depending on the nature and seriousness of their violations.

This enforcement action is unusual for a city like Dubai, which has been positioning itself as a prime hub for crypto businesses. Recently recognized as the top global destination for crypto enterprises in 2024, Dubai’s appeal stems from its clear regulatory framework, the absence of capital gains tax and affordable licensing fees.

Issuance, Custody and Trading Rules

The city’s efforts to create a crypto-friendly environment make such strict measures stand out.

Entities seeking to provide virtual asset services in or from Dubai must first secure a license from VARA. This applies to activities like Virtual Asset Issuance, Trading Platforms, and Custody Services. They begin by applying for Initial Approval to set up operations and then move on to obtaining a full VASP (Virtual Asset Service Provider) license.

Further, entities must fulfill all regulatory requirements for their planned activities. Virtual Asset Custody Services, for instance, must be kept separate from other operations. Additionally, those engaged in proprietary trading can obtain a No Objection Certificate (NoC) instead of a full license if they meet certain conditions.

As of Oct. 1, 2024, VARA has implemented strict marketing rules for virtual assets. These regulations apply to both Dubai-based entities and foreign companies targeting Dubai residents. Designed to eliminate misleading information, the rules target transparency and fairness in marketing practices.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.