Overview
- VARA issued cease-and-desist orders and fines of AED 100,000 to AED 600,000 after finding unlicensed activities and marketing breaches.
- Authorities said the actions serve as a public warning about financial, legal, and reputational risks tied to unlicensed virtual-asset providers.
- The sanctioned list included firms such as UAEC Digital Fintech FZCO, Morpheus Software Technology FZE (FUZE), TON DLT Foundation, GLEEC DMCC, and LBK Blockchain FZCO, among others.
- Dubai’s 2024 marketing rules require clear disclaimers and prior approval for promotions, with potential penalties up to AED 10,000,000 for violations.
- The crackdown follows earlier penalties in October 2024 and aligns with VARA–SCA efforts to harmonize oversight as major exchanges like Crypto.com, Bybit, Deribit, and HashKey secure provisional approvals.