The Virtual Asset Regulatory Authority (VARA), which is the main watchdog for cryptocurrency-related businesses in Dubai, has issued a formal cease and desist order to KuCoin and MEXC.
The regulator argued that it had come to its attention that the popular trading platforms “may be providing Virtual Asset activities to Dubai residents without the necessary regulatory approvals and misrepresenting” their legal statuses.
Aside from the cease and desist issued to all unlicensed VA activities, the official statement on KuCoin reads that investors and consumers must be aware of the potential risks.
“Engaging with unlicensed companies that are not in compliance with VARA Regulations, associated Rulebooks, and relevant UAE legislation exposes users to significant financial risks and potential legal consequences for violating regulatory requirements or criminal laws.”
It reasserted that KuCoin does not hold any license to provide crypto services in or from Dubai, which means that all such activities advertised or conducted by the exchange were “therefore in breach of the VARA Regulations.”
Dubai’s VARA introduced the comprehensive regulatory framework four years ago and requires all service providers to be licensed to operate legally in the jurisdiction.
A day before this notice against KuCoin, the regulator issued a similar alert against one of its competitors – MEXC. The message was identical, instructing a cease and desist order on all of its activities in and from Dubai.
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