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Dubai’s Virtual Assets Regulatory Authority has issued fines ranging from $13,600 to $27,200 to seven entities operating without a license or breaching marketing regulations.
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Dubai’s crypto regulator initiated a crackdown on unregulated crypto companies and firms violating its marketing rules.
On Oct. 9, Dubai’s Virtual Assets Regulatory Authority (VARA) issued fines and cease-and-desist orders to seven businesses for breaching marketing regulations and operating without required licenses.
VARA said it’s conducting further investigations in collaboration with other local authorities. The regulator did not specify which companies have received the sanctions.
VARA warns the public to avoid unlicensed crypto firms
In the announcement, the crypto regulator also warned the public to “avoid engaging with unlicensed firms.” VARA stated that interacting with unregulated entities exposes users and institutions to reputational and financial risks.
The regulator also said that interacting with such service providers has potential legal consequences. VARA underscored that only licensed firms can provide virtual asset services in and from Dubai:
“VARA will not tolerate any attempts to operate without appropriate licenses, nor will we allow unauthorized marketing of virtual asset activities. Our marketing regulations further emphasize Dubai’s commitment to ensuring transparency and always protecting stakeholder interests.”
In addition, VARA ordered the seven entities to stop all their crypto-related activities or any marketing and advertising promotions related to digital assets.
VARA also added that it had issued fines of 50,000 ($13,600) to 100,000 ($27,200) United Arab Emirates dirhams to each entity.
VARA’s Regulatory Affairs and Enforcement division added that their priority is to ensure that the crypto ecosystem in Dubai remains secure for investors and consumers while being progressive for compliant organizations.
Related: UAE exempts crypto transfers, conversion from value-added tax
Dubai tightens rules on crypto marketing
The recent crackdown follows the regulator’s recent efforts to tighten its rules on crypto marketing.
On Sept. 26, the crypto regulator announced that companies marketing virtual asset investments should add a prominent disclaimer to their promotional material. VARA said that crypto promotions should state that virtual assets may lose their value and are subject to volatility.
VARA CEO Matthew White said these regulations would ensure that virtual asset providers deliver services responsibly, fostering transparency and trust in the market.
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This article first appeared at Cointelegraph.com News
