Dubai-based virtual assets regulatory body VARA has fined Morpheus Software Technology for failing to meet appropriate governance standards and for intentionally violating anti-money laundering rules, as per a Khaleej Times report.
The regulatory body launched an investigation in April and discovered multiple issues in its AML compliance, governance, compliance, and internal systems.
Coupled with violations, VARA was reportedly also conducting unlicensed virtual assets activity and failed to give out full disclosures to the regulatory body.
It has said that the company has accepted the findings and has a plan in place to correct its issues, with a professional appointed to oversee the remediation strategy.
VARA did not disclose the penalty
No disclosure has been made yet as to the exact amount of the penalty.
“We have acknowledged the notice issued by the Virtual Assets Regulatory Authority (VARA) in relation to certain business activities conducted by our UAE entity, Morpheus Software Technology FZE. The matter relates to issues, which Fuze is addressing through a comprehensive remediation plan,” said Fuze in comments to crypto news outlet Cryptopolitan.
The update comes two months after the virtual assets regulatory body signed an MOU with the Solana Foundation.