Dubai’s VARA Fines 19 Crypto Firms for Operating Without Required Licenses

Highlights:

• Dubai’s VARA has fined 19 crypto firms and has warned that unlicensed operations will face strict enforcement actions.
• The regulator has directed all noncompliant firms to halt services and follow proper licensing rules.
• VARA is working to maintain investor trust across the virtual asset market.

Dubai’s Virtual Assets Regulatory Authority (VARA) has taken strong action against unlicensed crypto firms. The authority fined 19 companies for offering digital asset services without approval. It also issued cease-and-desist orders to prevent them from continuing operations. VARA stated that the move strengthens oversight and protects investors in Dubai’s growing virtual asset market.

🚨 19 firms penalized by Dubai’s VARA in the last six months 🚨

Dubai’s Virtual Assets Regulatory Authority (VARA) has sanctioned 19 firms for unlicensed activities, including well-known names like Triple A, TON DLT Foundation, and LBank.

Some were licensed abroad, others… pic.twitter.com/epxI0AwaVf

— Unlock Blockchain (@unlockbc) October 7, 2025

The fines were between AED 100,000 and AED 600,000, depending on the severity of each breach. The authority justified that enforcement provides market transparency and assures investor confidence. “Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” said VARA’s Enforcement Division.

The regulator said the penalized firms broke marketing and licensing rules. VARA ordered them to stop operations and remove unapproved crypto promotions. Meanwhile, VARA has underscored that adherence is key to businesses aiming to practice within its framework.

Dubai’s VARA Fines 19 Crypto Firms After Investigations Into Unlicensed Activities

VARA’s enforcement followed months of investigations into illegal crypto activities. The regulator found several firms violating the 2024 licensing and advertising rules. The rules require clear disclaimers on crypto ads and official approval before selling such products to residents.

VARA CEO Matthew White said the new strategy holds firms accountable for their services. He added that it improves transparency and protects consumers. VARA added that unlicensed crypto activities cause financial risks and weaken market confidence.

The penalized companies list involves UAEC Digital Fintech FZCO, MORPHEUS SOFTWARE TECHNOLOGY FZE (FUZE), TON DLT Foundation, and GLEEC DMCC, among others. All companies were fined depending on the magnitude and extent of their non-compliance. VARA ordered the firms to stop unlicensed services and remove all unauthorized ads right away.

In October 2024, VARA also conducted a similar action against seven unlicensed crypto firms. Those entities received lesser penalties and were also directed to shut down. This ongoing trend shows VARA’s focus on keeping Dubai’s crypto market transparent and compliant.

Meanwhile, several exchanges and crypto companies have received regulatory approval to operate in the region. Mantra recently acquired VARA approval to expand tokenization to the UAE. In addition, Laser Digital became the first entity to receive the first license to offer over-the-counter (OTC) crypto options in Dubai. 

Authority Stresses Investor Protection and Market Transparency

VARA encouraged consumers, investors, and institutions to cease dealings with unlicensed crypto operators. Moreover, it cautioned that this would be a legal, financial, and reputational danger. The regulator also reminded the public that licensed entities can be verified through its official register. This transparency, according to VARA, helps maintain confidence in Dubai’s virtual asset industry.

In August, VARA partnered with the Securities and Commodities Authority (SCA) to align national oversight of digital assets. In particular, the collaboration is meant to establish a cohesive method of regulating crypto operations throughout the United Arab Emirates. The partnership will promote fair practices and improve investor protection.

The Securities and Commodities Authority (SCA) has signed a landmark framework agreement with the Dubai Virtual Assets Regulatory Authority (VARA) to strengthen oversight and supervision of the UAE’s virtual assets sector, reinforcing the country’s position as a leading global… pic.twitter.com/kTejansdCT

— ABONHYAN (@ABONHYANUAE) September 21, 2025

The VARA declared that it will keep checking unlicensed activity and take action against the violator. The authority reiterated that it intends to have a compliant and orderly market environment for its consumers.