Dubai’s Virtual Assets Regulatory Authority (VARA) has fined 19 firms for operating without authorisation and breaching marketing rules, escalating enforcement in one of the Middle East’s most active digital-asset markets.
Following investigations, VARA’s Enforcement Division issued cease-and-desist orders and penalties ranging from AED100,000 to AED600,000 (about $27,000 to $163,000), depending on the seriousness and scope of each violation. The companies were ordered to halt operations immediately and stop promoting unlicensed virtual-asset services.
The action targets entities conducting unlicensed virtual-asset activities and those failing to comply with VARA’s Marketing Regulations. The regulator said the measures are part of a strengthened enforcement programme intended to protect the integrity of Dubai’s virtual-asset ecosystem, which has expanded as global firms seek regulatory clarity and access to regional capital.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” VARA’s Regulatory Affairs and Enforcement Division said in a statement. “These actions reinforce VARA’s mandate to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate. Unlicensed activity and unauthorized marketing will not be tolerated.”
VARA did not identify the companies penalised or specify the time period of the violations. It said the announcement serves as a reminder to consumers, investors and institutions that engaging with unlicensed entities carries financial, legal and reputational risks. The regulator authorises only formally licensed companies to provide virtual-asset services in or from Dubai.
Dubai established VARA in 2022 to create a dedicated framework for digital-asset service providers, including exchanges, custodians and brokers, as the emirate positions itself as a regulated hub for the sector in the Gulf. The authority’s licensing regime sets operational, governance and compliance standards, including rules around marketing and investor communications. Firms that market or offer services without authorisation can face fines, orders to cease activity and further disciplinary measures.
The latest enforcement round underscores a broader tightening of oversight across the UAE as authorities seek to balance innovation with investor protection. Regulators in the UAE have introduced and updated rules for virtual assets in recent years, reflecting global scrutiny of the industry following episodes of market volatility and operational failures at some international platforms.
Market participants say greater clarity on licensing requirements has encouraged established firms to seek approvals, while unlicensed actors face heightened risk of penalties.
VARA said it will continue to identify and investigate unlicensed activity and take proactive measures to uphold transparency, safeguard investors and preserve market integrity. The regulator added that only regulated firms meeting its standards will be permitted to operate in the emirate’s virtual-asset market and that unauthorised marketing would remain a focus of enforcement.
