The Dubai Virtual Assets Regulatory Authority (VARA) has officially ordered KuCoin to immediately halt all business activities in Dubai due to the platform's failure to obtain the legally required virtual asset service provider license. According to Dubai Law No. 4 (2022) and Cabinet Resolution No. 111/2022, any entity providing cryptocurrency services in Dubai must obtain formal authorization from VARA, which KuCoin has consistently failed to complete.
This action is part of the UAE's ongoing efforts to strengthen regulation in the cryptocurrency industry. By 2025, VARA had imposed penalties on 19 unlicensed companies, with fines ranging from 100,000 to 600,000 dirhams. With the introduction of Federal Decree No. 6 (2025), the cost of violations has significantly increased, with fines reaching up to 500 million dirhams and potential criminal liability, reflecting the regulatory body's zero-tolerance approach to illegal financial activities.
For local users in Dubai, continuing to use KuCoin poses substantial risks. The trading, deposit, and withdrawal functions on the platform have lost legal protection, and users cannot enjoy the investor protection mechanisms and dispute resolution channels provided by licensed exchanges like Binance or Coinbase. VARA has explicitly warned that continued use of unlicensed platforms may lead to financial losses and even legal repercussions.
In response to regulatory pressure, KuCoin issued a brief statement indicating that it would “respect the laws and regulations of jurisdictions worldwide” and promised to adopt a “cooperative attitude with regulators.” However, it did not disclose whether it would completely exit the Dubai market or provide specific plans or timelines for applying for VARA licensing.
In fact, KuCoin is facing regulatory crackdowns globally. In January 2025, the platform acknowledged violations of anti-money laundering regulations in the U.S., paying a fine of $297 million and agreeing to suspend its U.S. operations for two years; in September of the same year, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined it CAD 19.6 million for failing to register as required; in February 2026, the Austrian Financial Market Authority (FMA) prohibited its EU subsidiary from accepting new clients, citing severe deficiencies in its compliance team.
Since January 2025, KuCoin has been led by former Chief Legal Officer BC Wong as CEO, who has publicly stated a shift towards a “compliance-first” strategy. However, the ongoing international sanctions indicate that this transformation has yet to yield substantial results in practice.