- Dubai’s VARA imposes fines on 19 crypto firms for unauthorized operations.
- Fines range from AED 100,000 to AED 600,000 with immediate cessation orders.
- The partnership between VARA and SCA ensures standardized regulations throughout the nation’s digital asset sector.
The United Arab Emirates is solidifying its status as a global crypto hub—but with regulations in place.
As the virtual asset market in the country grows, regulators are enhancing enforcement to safeguard investors and ensure transparency.
Dubai’s Virtual Assets Regulatory Authority (VARA) has taken strong measures against unlicensed operators, emphasizing that the city’s crypto ambitions are built on compliance rather than disorder.
VARA penalizes 19 crypto firms for unauthorized operations
VARA has recently penalized 19 companies for engaging in virtual asset activities without the proper authorization or in breach of its marketing regulations.
The fines, which varied from AED 100,000 to AED 600,000, were paired with cease-and-desist orders, mandating these firms to halt all operations and promotional efforts in Dubai immediately.
The list of fined companies included UAEC Digital Fintech FZCO, Morpheus Software Technology FZE (trading as FUZE), TON DLT Foundation, GLEEC DMCC, UEEX Technology, LBK Blockchain FZCO, Triple A Technologies, Hatom Labs, Hokk Finance, Mastercoin DMC, and A to Z Globe DMCC, among others.
VARA indicated that these entities violated regulatory requirements and did not secure the necessary licenses for offering crypto-related services.
Each firm was directed to cease marketing unapproved crypto products and services to residents or entities in Dubai.
Dubai intensifies enforcement to ensure market integrity
This crackdown signifies one of VARA’s strongest enforcement actions since its formation, reinforcing Dubai’s stance that virtual asset activities must comply with its regulatory framework.
VARA noted that unlicensed operations pose significant financial, legal, and reputational risks—not just to investors but also to the stability of the broader digital asset environment.
In earlier instances, VARA had imposed similar penalties on entities found in violation of its licensing regulations.
For example, Morpheus Software Technology FZE (FUZE) was earlier fined for anti-money laundering infractions and governance issues.
The firm has since acknowledged the findings, submitted a corrective action plan, and allowed VARA to appoint an independent compliance monitor to oversee remediation efforts.
These steps highlight Dubai’s commitment to fostering a secure market that encourages innovation while ensuring investor protection.
UAE aims for cohesive crypto regulation
This year, the UAE’s Securities and Commodities Authority (SCA) and VARA established a strategic partnership to align regulatory frameworks nationwide.
The collaboration seeks to eliminate inconsistencies between federal and emirate-level regulations, ensuring that all virtual asset service providers function under uniform oversight.
This integrated approach is part of the UAE’s larger initiative to attract global crypto firms while upholding stringent standards for transparency and risk management.
The partnership between SCA and VARA also facilitates data sharing, streamlines licensing, and enhances supervision of the rapidly evolving digital asset market.
Robust adoption propels regulatory evolution
While the UAE tightens its regulations, it continues to experience one of the highest rates of crypto adoption worldwide.
Experts recently ranked the UAE among the leading countries for digital asset ownership, with 25.3 percent of its population holding cryptocurrencies.
This growth—driven by strong investor interest and government backing—has positioned the UAE as one of the most vibrant markets globally for blockchain and decentralized finance initiatives.
Between 2019 and 2025, crypto adoption in the UAE reportedly surged by over 200 percent.
In global benchmarks, the country achieved a score of 99.7 on a composite crypto adoption index, just behind Singapore, which secured a perfect score of 100.
This widespread acceptance has made regulation increasingly urgent.
Authorities recognize that unlicensed operations could jeopardize investor confidence, and VARA’s recent enforcement efforts aim to establish clear parameters for firms entering the market.
