Dubai Regulator Halts KuCoin and MEXC's Crypto Operations in the Region

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued notices demanding that KuCoin and MEXC, along with their affiliated entities, immediately cease offering any virtual asset services within Dubai or to its residents. This action marks a significant step in VARA's efforts to strengthen regulatory compliance within the crypto industry.

Regarding KuCoin, VARA specifically named several affiliated companies, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH. The regulator stated that these entities may have been promoting or providing crypto services to Dubai users without obtaining the necessary legal permits, and even misleading the public through advertising that falsely implied official authorization. VARA has explicitly demanded that these parties immediately terminate all business activities related to Dubai, emphasizing that any company operating virtual asset services in Dubai must obtain regulatory approval in advance.

Similarly, MEXC has also been included on the regulatory list, involving entities MEXC Estonia OÜ and MEXC Global Ltd. VARA pointed out that these companies do not hold the legal qualifications to operate in Dubai, and any form of advertising, promotion, or customer recruitment is a violation. The regulator stressed that even if a company is headquartered abroad, it must comply with local laws as long as its services target Dubai residents. This enforcement is based on Dubai Law No. 4 of 2022 and UAE Cabinet Resolution No. 111 of 2022, both of which require virtual asset service providers to obtain official licenses before operating. VARA's jurisdiction covers Dubai's mainland and free zones, but excludes the Dubai International Financial Centre (DIFC). The agency stated that issuing the cease and desist order is part of its routine regulatory duties, aimed at maintaining market order, protecting investor rights, and promoting the standardized development of the industry.