The Virtual Assets Regulatory Authority (VARA) in Dubai is stepping up its action against cryptocurrency companies that aren’t controlled. On October 9, VARA said it had fined seven companies for marketing rules that were broken and not having the right licenses. Between $13,600 and $27,200 in fines were given, along with orders telling these companies to stop doing anything linked to crypto.
In a statement, VARA stressed how important it is to follow the rules and warned people not to do business with companies that aren’t registered. They said that doing business with these kinds of groups comes with big legal, financial, and social risks. VARA said again that it would only let registered companies offer virtual asset services in Dubai and that it would not stand for the illegal selling of virtual asset activities.
The crackdown is part of VARA’s bigger plan to improve transparency and tighten control in the rapidly growing crypto business. The government just recently made new rules that say companies must include clear warnings in their marketing papers about the risks of investing in virtual assets, such as the possibility of losing value.
Matthew White, the CEO of VARA, said that these rules are meant to make sure that virtual asset providers act responsibly, which will keep the market honest and open. The authorities’ proactive steps show that Dubai is serious about making the city a safe place for investment and a compliant crypto economy.
Dubai is still trying to become a global center for digital assets. VARA’s moves make it clear that all companies doing business in the region need to follow the rules. The regulatory body has not released the names of the companies that were fined, which suggests that they are still looking into possible violations.
