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Dubai’s VARA Fines 19 Crypto Firms for Unlicensed Operations

Dubai’s VARA Fines 19 Crypto Firms for Unlicensed Operations

Dubai is strengthening virtual asset regulations, targeting unlicensed operations and promoting investor protection.

Written by Rahul Dhingra, Edited by David Delima | Updated: 8 October 2025 16:36 IST

Dubai’s VARA Fines 19 Crypto Firms for Unlicensed Operations

Photo Credit: Unsplash/Ahmed Galal

Regulatory updates aim to create a safer and more transparent crypto ecosystem in Dubai

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Highlights

Dubai strengthens oversight to curb unlicensed crypto operations
Fines ranged from AED 100,000 to AED 600,000
Updated VARA rules reinforce risk and compliance standards

Dubai's Virtual Assets Regulatory Authority (VARA) has intensified its regulatory oversight by penalising 19 digital asset firms for operating without proper licences. The move targeted breaches of marketing rules, including unapproved promotional materials and misleading disclaimers. Fines ranged from AED 100,000 (roughly Rs. 24 lakh) to AED 600,000 (roughly Rs. 1.43 crore), depending on the severity of the violations. Investor protection and curbing risks involved with unlicensed crypto activities are the key goals of Dubai's efforts towards maintaining a fully regulated virtual asset environment.

VARA Brings Stricter Compliance Rules Alongside Enforcement Actions

VARA swiftly issued cease-and-desist orders to the penalised entities by conducting a series of investigations into unauthorized operations. The regulators emphasised that prior approval is mandatory before offering or promoting crypto services in the UAE. These moves are a part of VARA's ongoing enforcement programme, which aims to eliminate unlicensed operators and mitigate legal and reputational risks in Dubai's fast-growing digital asset market.

The regulator implemented stricter marketing rules for virtual asset service providers in 2024. These regulations require clear disclaimers and prior approvals for promotional content to prevent misleading outreach.

Firms found in violation of these rules faced immediate financial penalties and enforcement action. In October 2024, a similar enforcement action took place that saw seven companies fined for comparable breaches, setting a precedent for the regulator's firm approach.

The crackdown comes as part of broader regulatory upgrades by VARA, which introduced changes to its crypto policies to tighten risk oversight and strengthen investor protection earlier this year. Announced in May, the updated rules cover licensed crypto and Web3 activities, including margin trading, token distribution, advisory, custody, and exchange services.

Providers are required to conduct quarterly client risk assessments, verify detailed client information, and comply with clarified operational guidelines. Ruben Bombardi, VARA's General Counsel, said the updates “reinforce the foundations of a responsible, scalable ecosystem.”

The regulators emphasized that only licensed entities are allowed to operate or promote crypto services in Dubai. The authority has also collaborated with the Securities and Commodities Authority to unite regulatory approaches across the UAE. These measures are intended to balance innovation with security, reinforcing trust and transparency in Dubai's virtual asset ecosystem.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Dubai, VARA, Crypto Regulations

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More