- VARA issues warning about unlicensed MKAN Coin platform in Dubai.
- VARA suspends the MKAN Coin platform for operating without regulatory approval.
- It urged consumers to avoid engaging with unlicensed services due to significant risks.
The Virtual Assets Regulatory Authority (VARA) of Dubai has issued an official alert regarding the company MKAN Coin DMCC. In a statement on the official VARA website, they cautioned that MKAN Coin has been operating in the UAE without the right regulatory approval.
The company has been advertising virtual asset services as available in Dubai, even though it doesn’t have the licenses it needs.
Users at Risk from Unlicensed Operations
VARA made it clear that MKAN Coin is not allowed to provide virtual asset services in or from Dubai. This means they are breaking VARA rules. The platform’s services are considered illegal in Dubai, which puts users who use it at serious risk.
These risks cover possible financial losses, legal trouble, and breaking criminal laws by dealing with an unregulated platform.
Related: Dubai’s VARA: Striking the Right Balance in Crypto Regulation
VARA’s Legal Framework and Consumer Protection
Under Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must be licensed to legally operate in the Emirate.
Because MKAN Coin doesn’t meet these regulatory needs, VARA has ordered the company to stop all its activities and has charged them a fine.
To safeguard users, VARA has suspended access to the MKAN Coin website and advised consumers and investors to avoid engaging with the platform. VARA encourages the public to report any unlicensed virtual asset activities to help protect the integrity of the market.
As the authority in charge of regulating virtual asset activities in Dubai, VARA is still focused on protecting consumers and making sure there’s a secure investment environment.
Past Warnings to Unlicensed Crypto Entities
In addition, in December 2024, VARA issued warnings about seven crypto entities falsely claiming to be registered and licensed in Dubai. These entities include Koto Crypto, Crypto Force, Finchain, BTC Bay, and XT.com.
According to the notice, any virtual asset-related activities on these platforms do not follow VARA rules. Users who use unlicensed platforms face significant financial risks and could run into legal problems.
Related: Dubai’s VARA Issues New Crypto Marketing Guidelines, Mandates Risk Disclaimers
VARA Statement Against Speculative Investing
On February 13, 2025, VARA issued an alert about the high risks of investing in meme coins, labeling them as highly speculative, volatile, and often manipulated. It warned that these assets lack intrinsic value and are influenced by social media trends, posing a risk of significant financial loss.
VARA stressed that all virtual assets in Dubai must follow local regulations, and unauthorized activities could lead to enforcement actions. Consumers are being told to be careful, as access to meme coin platforms might be limited, and to protect their financial security.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/dubais-virtual-assets-regulator-cracks-down-on-mkan-coin-for-illegal-operations/