United Arab Emirates: Announced VARA enforcement actions against unlicensed virtual asset

On 9 October 2024, the Virtual Assets Regulatory Authority (VARA) issued fines and cease-and-desist orders to seven entities found operating without the required licences. Fines ranged from AED 50'000 to AED 100'000, with penalties applied based on the nature and severity of the regulatory violations. The enforcement actions were carried out as part of VARA's programme to ensure compliance within the virtual asset sector and uphold its regulatory framework. The identified firms were instructed to stop all business operations and refrain from any further marketing or advertising of virtual asset services. In addition, VARA issued a market-wide public warning advising individuals and organisations to avoid dealings with unlicensed firms, emphasising the associated financial, reputational, and legal risks. The VARA reiterated that the virtual assets industry in Dubai is strictly regulated, and only licensed entities are authorised to provide such services. All licensed entities must adhere to the requirements specified in VARA's rules and framework. Ongoing investigations in cooperation with local authorities are expected to address further regulatory breaches.