The move is a rare one for a region that has sought to establish itself as a global hub for cryptocurrencies.
- Dubai’s virtual assets regulator has issued cease-and-desist orders and fined seven unidentified crypto entities.
- The emirate has positioned itself as a cryptocurrency hub and recently issued licenses to cryptocurrency exchanges Binance, OKX and Crypto.com.
Dubai’s Virtual Asset Regulatory Authority (VARA), one of the regulators of the cryptocurrency industry in the United Arab Emirates (UAE), said it has fined seven “entities” for operating without the required licenses and violating marketing regulations.
The regulator announced on Wednesday that it had also issued cease and desist orders to these entities.
VARA did not name the entities and said it was investigating them together with local authorities. Fines ranged from 50,000 dirhams ($13,600) to 100,000 dirhams per entity.
“All relevant entities have been directed to immediately cease all activities and stop engaging in any marketing or advertising of virtual asset services,” the statement said.
The move is a rare one for a region that is trying to establish itself as a global cryptocurrency hub. Dubai recently granted full regulatory approval to cryptocurrency exchanges such as OKX, Binance and Crypto.com. Earlier this month, the UAE exempted cryptocurrency transactions from value-added tax (VAT). In August, a court order appeared to provide soft legality for companies to pay employees in cryptocurrencies.
VARA said the move also serves as a public warning to everyone to avoid dealing with any unlicensed company.