Dubai fines 19 crypto companies for illegal activities: stricter rules should make the market safer

Dubai is taking another strong step towards a strictly regulated crypto market. The Virtual Assets Regulatory Authority (VARA), the emirate’s digital assets regulator, has fined 19 companies for offering crypto services without a license. The measure underlines Dubai’s growing commitment to ensuring transparency, stability and investor protection in the fast-growing crypto sector.

According to VARA, the sanctions are part of a broader strategy to protect the digital financial ecosystem and limit risks from unregulated activities. According to the regulator, enforcement is essential to maintain confidence and stability in the market. Only companies that meet the highest standards of compliance and governance are allowed to remain in business.

Stricter supervision of crypto companies in Dubai

The companies involved were sanctioned for offering crypto services without a license and violating VARA’s marketing rules. Since 2024, regulations for providers have been tightened: they must include clear disclaimers in promotional materials and request prior permission before promoting products or services to Dubai residents.

VARA CEO Matthew White emphasized that the stricter rules force companies to offer their services in a responsible manner. This should lead to more transparency and trust among consumers and investors.

Heavy fines and immediate termination

The 19 companies were ordered to immediately cease operations and stop all unauthorized promotion. The fines imposed ranged from 100,000 to 600,000 dirhams, equivalent to about 27,000 to 163,000 dollars. The amount of the fine depended on the seriousness of the violation and the scale of the activities.

VARA emphasized that unlicensed activities and unauthorized marketing will not be tolerated. The regulator says it will continue to act actively in the future to protect investors, ensure transparency and maintain the integrity of the market. In October 2024, VARA already imposed fines on seven other companies that were operating without a permit.

Innovation and regulation must go hand in hand

While the United Arab Emirates is known as one of the most crypto-friendly jurisdictions in the world, this enforcement action shows that innovation and regulation must go hand in hand. According to VARA, the permit system is designed to provide space for new developments, but always with an eye for consumer protection and market safety.

The regulator warns that collaboration with unlicensed parties entails significant legal, financial and reputational risks. Only companies with a valid VARA license are allowed to offer crypto services in or from Dubai.

Collaborative approach to crypto regulation in the UAE

The announcement of the sanctions follows shortly after a collaboration between VARA and the Securities and Commodities Authority (SCA). On August 7, the agencies decided to harmonize their approaches, creating a single, uniform regulatory framework for the entire United Arab Emirates.

With this joint approach, Dubai aims to further strengthen its position as an international hub for digital assets. The recent measures make it clear that the country wants to continue to stimulate innovation, but never at the expense of market transparency, integrity and investor protection.