Dubai's Virtual Assets Regulatory Authority (VARA) has recently issued formal cease and desist orders to cryptocurrency exchanges KuCoin and MEXC, accusing them of providing virtual asset services to Dubai residents without obtaining the necessary licenses and engaging in misleading advertising practices. VARA stated that unlicensed platforms not only violate its regulatory framework and relevant UAE laws but also expose users to significant financial risks and potential legal consequences. The agency emphasized that KuCoin does not currently hold any legal qualifications to conduct any crypto business in Dubai, and all its activities targeting local users are in violation of regulations.
Since establishing a comprehensive regulatory system four years ago, VARA has required all companies providing virtual asset services in Dubai to obtain official authorization to ensure market compliance and protect investor rights.
Dubai Regulator VARA Halts KuCoin and MEXC Operations in the Region
Dubai's VARA has formally halted KuCoin and MEXC's operations in the region, accusing them of providing crypto services without a license and reminding users to avoid the legal and financial risks of unlicensed platforms.