Dubai’s Virtual Assets Regulatory Authority issued cease and desist orders against two crypto exchanges after finding they were operating without approval. The regulator said the exchanges did not hold licenses required to offer virtual asset services in Dubai.
The warnings targeted entities linked to KuCoin and MEXC. VARA stated that both exchanges must stop any activity related to virtual asset services in or from Dubai.
The notices form part of the regulator’s broader effort to enforce licensing rules for crypto companies operating in the emirate.
VARA Says KuCoin Entities Must Halt Unlicensed Services
VARA identified several entities associated with KuCoin in its alert. These include Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH.
According to the regulator, those entities may have provided services to Dubai residents without obtaining a license. VARA also said the firms may have presented information that suggested they were authorized to operate locally.
As a result, the regulator ordered them to cease and desist from any virtual asset activities connected to Dubai. VARA stated that companies must secure regulatory approval before offering or promoting crypto services in the emirate.
MEXC Entities Also Ordered to Cease Activity in Dubai
VARA issued a separate alert for MEXC. The notice named MEXC Estonia OÜ and MEXC Global Ltd as the entities tied to the exchange.
The regulator said those firms do not hold a license to provide virtual asset services in or from Dubai. Therefore, any services directed at Dubai residents would violate local regulatory rules.
VARA also stated that any promotion, advertising, or solicitation connected to MEXC has not been approved. Consequently, the firms cannot market or provide crypto-related products or services within Dubai’s jurisdiction.
Dubai Law Requires Licensing for Virtual Asset Services
VARA cited Dubai Law No. 4 of 2022 and UAE Cabinet Resolution No. 111 of 2022 in the notices. Under these laws, virtual asset service providers must obtain authorization before operating in Dubai.
The regulator explained that the licensing requirement applies to companies offering crypto services or targeting customers in the emirate. Firms must also receive approval before advertising virtual asset products or platforms.
VARA added that enforcement actions such as cease and desist notices are part of its regulatory oversight. The regulator oversees crypto activities across Dubai’s mainland and free zones, excluding the Dubai International Financial Centre.
Source: https://coinpaper.com/15241/dubai-regulator-orders-ku-coin-and-mexc-to-stop-crypto-activity