Dubai’s virtual asset regulator has issued a public warning
about crypto exchange KuCoin, saying the platform may have offered services to
residents of Dubai without regulatory approval.
The regulator has previously taken enforcement action
against firms operating without authorization. In 2025, VARA
fined 19 companies and issued cease-and-desist orders after finding they
had offered crypto services outside the emirate’s regulatory framework.
Financial penalties ranged from AED 100,000 to AED 600,000, and the companies
were instructed to stop their unlicensed activities.
VARA Flags KuCoin Over Unlicensed Activities
The latest alert was published by the Virtual Assets
Regulatory Authority. The authority said it had identified potential
unlicensed activities linked to the exchange’s global platform.
According to the regulator, the company “may be providing
Virtual Asset activities to Dubai residents without the necessary regulatory
approvals.” VARA also alleged that the firm misrepresented its licensing status
in the jurisdiction.
The warning names several entities connected to the
exchange. These include Phoenixfin Pte Ltd, MEK Global Limited, Peken Global
Limited, and KuCoin Exchange EU GmbH. VARA said the companies are associated
with the platform operating through the domain kucoin.com and advertising
services under the KuCoin brand.
Dubai Warns Investors on Unlicensed Firms
The authority said the exchange does not hold a licence to
provide virtual asset services in or from Dubai. Any such activities would
therefore breach VARA regulations.
As part of its action, the regulator instructed the company
to “cease and desist all unlicensed VA activities.”
VARA also warned investors about the risks of dealing with
firms that are not regulated in the emirate. According to the authority,
engaging with companies that are not compliant with its rules “exposes users to
significant financial risks.” It added that such interactions could also lead
to legal consequences if local regulatory requirements or criminal laws are
violated.
Dubai Regulator Blocks KuCoin Promotions
The regulator stated that KuCoin “does not meet these legal
requirements and is not authorised to provide any Virtual Asset services
in/from Dubai.” It also said that any promotion or advertising related to the
exchange has not been approved. As a result, the platform is not permitted to
offer, promote, or market virtual asset products or services in Dubai or to its
residents.
VARA urged investors and consumers in Dubai to avoid
engaging with KuCoin for virtual asset services. It also advised the public to
exercise caution when interacting with unregulated entities.
This article was written by Tareq Sikder at www.financemagnates.com.
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