The Virtual Assets Regulatory Authority (VARA) has taken a firm stance on ensuring the safety and protection of the public by cracking down on unlicensed entities in the virtual asset industry. In a recent announcement, VARA revealed its enforcement program, which includes issuing cease and desist orders along with fines to 7 entities for operating without a license and violating marketing regulations.
The enforcement notice on VARA’s website serves as a warning to the public, urging them to steer clear of unlicensed firms. VARA emphasized that engaging with such entities can result in significant financial and reputational risks for individuals and institutions.
It was made clear that only entities licensed by VARA are authorized to provide virtual asset services in and from Dubai. The Authority is committed to protecting consumers, investors, and maintaining market integrity. The Regulatory Affairs and Enforcement team at VARA reiterated their dedication to ensuring a secure virtual assets ecosystem for all stakeholders.
All non-compliant entities have been instructed to cease all activities immediately and refrain from marketing or advertising virtual asset services. Fines ranging from AED 50,000 to AED 100,000 per entity have been issued based on the severity of the violations.
This enforcement action follows the introduction of VARA’s marketing regulations, designed to enhance the regulatory framework for Virtual Asset Service Providers (VASPs) operating in Dubai and beyond. The Marketing Guidance Document provides clear guidelines for VASPs engaging in marketing activities within the region, with the regulations coming into effect on October 1st, 2024.
In conclusion, VARA’s proactive measures aim to uphold transparency, protect stakeholder interests, and maintain the integrity of the virtual asset industry in Dubai and the wider GCC region. Stakeholders are encouraged to adhere to regulatory requirements to ensure a safe and compliant virtual assets ecosystem for all.