Doomsday for seven crypto firms as VARA releases cease-and-desist orders
Dubai authority won't 'tolerate any attempts to operate without appropriate licenses'
Emerging as a star in the global crypto space, the UAE has been seeing a virtual asset renaissance. Serving as a guardian for regulatory safety, VARA plays a crucial role in its vision of global growth. VARA implements world-class standards to protect investors, mitigate risk, and enable innovations in virtual asset services—all for the sake of trust and credibility.
VARA’s licensing ensures that only qualified entities operate in Dubai’s virtual asset market. The framework fosters trust and security through strict authorisation and compliance, reinforcing Dubai’s regulatory leadership.#VARA #DubaiRegulations pic.twitter.com/RclIXOlrdN
— Virtual Assets Regulatory Authority (VARA) (@varadubai) September 18, 2024
Though its regulatory framework is remarkably strict, VARA is far from a market killer. In fact, just this year, VARA gave the go signal to Binance, Crypto.com, and OKX crypto exchanges to operate within its jurisdiction.
Now, with the country's incredible commitment to crypto growth and adoption, VARA's recent “doomsday” move may come as a shock to many onlookers.
Because of grave compliance slip-ups, seven unnamed crypto firms now face cease-and-desist orders and hefty penalties ranging from Dh50,000 to Dh100,000. According to the authority, the crackdown chiefly stems from unlicensed operations and market regulation breaching. The regulatory body has pushed the brakes, mandating these firms to stop operations and halt advertising and marketing.
The exact names of these entities were not disclosed to the public. In collaboration with local authorities, in-depth investigations are underway.
DUBAI'S VARA ISSUES 7 CEASE-AND-DESIST ORDERS TO ENTITIES WITHOUT LICENSES
— BSCN (@BSCNews) October 10, 2024
- The Virtual Assets Regulatory Authority (VARA), which oversees the crypto industry in the UAE, has issued cease-and-desist orders, along with accompanying fines, to seven entities in the region.
-… https://t.co/SRwtdj2kp9 pic.twitter.com/U3LVewweAY
Targeting firms that work without a license, this assertive move comes under VARA's umbrella efforts to protect Dubai's ecosystem of virtual assets. According to VARA's Regulatory Affairs and Enforcement, they aim to “ensure that Dubai's virtual assets ecosystem remains secure for consumers and investors while being a progressive environment for compliant entities”.
This shocking news also serves as a warning to many: the authority will not “tolerate any attempts to operate without appropriate licenses, nor will [they] allow unauthorized marketing of virtual asset activities.”
VARA also reminds the general market of the strict rules governing the virtual asset industry. With a firm commitment to building trust and integrity, the authority stresses that licensed institutions must diligently follow the requirements laid out in its framework and rules.
