Dubai’s crypto regulatory body VARA has announced fines on 19 firms related to digital assets citing breach of licensing requirements. While a few of these companies were providing crypto services, the others were advertising and marketing crypto services without acquiring the necessary permissions.
In an official statement shared this week, VARA said that it conducted thorough investigations into the companies working around crypto services to identify these 19 platforms that were not in alignment with Dubai’s regulatory guidelines.
“Sanctions included cease-and-desist orders and fines ranging from AED 100,000 to AED 600,000, calibrated to the seriousness and scope of the violations,” the agency said in its statement.
A list released by VARA has named TON DLT Foundation, LBK Blockchain, and Mastercoin among platforms that have been impacted by the order.
All of the 19 firms have now been instructed to halt their operations and marketing services in or from Dubai.
“These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate. Unlicensed activity and unauthorised marketing will not be tolerated,” VARA added.
Launched in March 2022, VARA is responsible for overseeing the crypto sector in Dubai. All crypto firms looking to set up shop in the Emirate are mandated to register with the agency to legitimize their operations.
In the last few months, the agency has intensified its crackdown on unlicensed crypto firms. Last month, for instance, it fined Morpheus Software Technology for failing to meet appropriate governance standards and for intentionally violating anti-money laundering rules.
Earlier this year, VARA released version 2.0 of its legislative rulebook that brought enhanced controls for margin trading and token distribution services to the table.