Businesses dealing in cryptocurrencies are coming under increased scrutiny from Dubai’s Virtual Assets Regulatory Authority (VARA), which is focusing on those that are operating without a license or who are trying to evade marketing laws.
On October 9, the authority issued penalties and orders to stop and desist to seven different businesses for operating without the proper permissions and for violating advertising restrictions.
Despite the fact that VARA has not released the identities of the firms that have been sanctioned, it has indicated that it intends to conduct further investigations in conjunction with the authorities in the local area. Additionally, the regulator has cautioned the general public to avoid associating with unregistered cryptocurrency companies, stating that doing so may result in both financial and reputational concerns, in addition to the possibility of legal ramifications having an impact.
In a statement, VARA emphasized that the provision of virtual asset services in Dubai is restricted to only regulated firms. In addition to reiterating its dedication to openness and safeguarding the interests of stakeholders, the authority said that it would take a tough position against the unauthorized activities and sale of virtual assets.
Every single one of the seven organizations was awarded penalties ranging from 50,000 AED (about $13,600) to 100,000 AED (approximately $27,200), and they were also given orders to stop all marketing efforts and activities relating to cryptocurrencies.
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