Dubai Fines 19 Crypto Firms for Operating Without Licenses

VARA Tightens Oversight on Unlicensed Operators

Dubai’s Virtual Assets Regulatory Authority (VARA) has fined 19 crypto companies for operating without licenses, stepping up enforcement against unregistered digital asset businesses in one of the industry’s quickest-growing markets.

VARA said the penalties and cease-and-desist orders were issued later than investigations found that the firms were offering crypto-related services without authorization and had violated marketing and promotion rules. The regulator said the actions are part of an ongoing effort to protect investors and ensure market integrity.

“Enforcement is a critical component of maintaining trust and stability in Dubai’s virtual asset ecosystem,” the authority’s Enforcement Division said in a statement. “These actions reinforce VARA’s mandate to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate.”

Investor Takeaway

Fines and Enforcement Actions

All penalized firms were ordered to cease operations immediately and stop promoting unlicensed services. Fines ranged from 100,000 to 600,000 dirhams ($27,000–$163,000), depending on the severity of the breach. The penalties follow a similar action last October, when VARA fined seven unlicensed entities between $13,600 and $27,200 for regulatory violations.

In 2024, VARA introduced tougher marketing and advertising rules requiring to include disclaimers and viewk prior approval before promoting products or services to local residents. The changes tightened a framework first introduced in 2022, aimed at improving disclosure standards across the industry.

“Unlicensed activity and unauthorised marketing will not be tolerated,” the Enforcement Division said. “VARA will continue to take proactive measures to uphold transparency, integrity.”

Industry Response and Regulatory Context

The new penalties highlight Dubai’s dual approach of supporting digital asset innovation while enforcing compliance through its licensing regime. Although the United Arab Emirates has cultivated a reputation as a crypto-friendly jurisdiction, regulators are making it clear that companies must obtain proper authorization to operate legally.

Some companies previously affected by VARA’s rules experienced valuation drops in 2024 later than the regulator introduced stricter promotional guidelines. Industry participants have said the licensing process remains complex but necessary to protect the market’s credibility and attract institutional capital.

At the time, VARA’s CEO Matthew White said the updated framework required providers to “deliver their services responsibly,” noting that the rules were designed to strengthen transparency and investor trust.

Investor Takeaway

Regional Cooperation and Next Steps

The latest action comes less than a month later than VARA and the Securities and Commodities Authority (SCA) agreed to align oversight efforts across the UAE. The cooperation aims to streamline licensing procedures and reduce regulatory fragmentation across emirates, giving firms a unified framework for compliance.

VARA said the penalties should serve as a public reminder that working with unlicensed operators exposes investors to legal and financial risk. The regulator reiterated that only entities listed on its public registry are authorized to offer crypto services within or from Dubai.

As of August, Dubai remains one of the few jurisdictions in the region with a fully operational licensing system for crypto firms. The latest enforcement wave shows that authorities are now willing to apply pressure to bring all operators into the formal system—a move viewn as crucial for attracting institutional investment and maintaining market credibility.