Dubai’s Virtual Assets Regulatory Authority (VARA) has issued an investor and marketplace alert against crypto exchange KuCoin, instructing the platform to stop operating in the emirate due to a lack of regulatory approval.
In a public notice, VARA stated that several entities associated with KuCoin, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH, may have been providing virtual asset services to Dubai residents without the required authorization. The entities were also accused of misrepresenting their licensing status while promoting services through the KuCoin website.
According to the report, KuCoin does not hold any license to offer virtual asset services in or from Dubai. As a result, the company has been directed to cease and desist from conducting any unlicensed virtual asset activities targeting residents in the emirate.
VARA Warns Investors About Risks of Unlicensed Platforms
VARA emphasized that offering or promoting crypto-related services without approval violates its regulatory framework. Under Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must obtain a license before operating in the jurisdiction.
Consumers Urged to Verify Licensing Status
The regulator also warned that engaging with unlicensed platforms may expose users to financial losses and potential legal consequences. Any advertising, solicitation, or promotion related to KuCoin’s virtual asset services in Dubai has not been approved by VARA.
VARA urged investors and consumers to verify the licensing status of crypto companies through its official public register before interacting with any platform. The authority added that users should exercise caution when dealing with firms that are not regulated in the UAE.
The notice forms part of Dubai’s broader effort to strengthen oversight of the digital asset sector as the emirate continues to position itself as a global hub for regulated crypto activity. Recently, KuCoin was in the spotlight for freezing a user’s funds.
