The Virtual Assets Regulatory Authority (VARA) in its efforts to toughen up with regards to supporting and keeping the public safe has announced that as part of its enforcement program it will issue, cease and desist orders along with accompanying fines to 7 entities for operating without a license and for breaching marketing regulations.
In the enforcement notice on VARA’s website, it noted that VARA requests the public to avoid engaging with any unlicensed firms. As it stipulated interacting with such entities exposes individuals and institutions to significant financial and reputational risk.
Only entities licensed by VARA can offer virtual asset services
It clearly stated, “Only firms licensed by VARA are authorized to provide virtual asset services in/from Dubai, and the Authority remains steadfast in its commitment to protect consumers and investors, and to preserve market integrity. ”
The Regulatory Affairs and Enforcement at VARA also noted, “Our priority is to ensure that Dubai’s virtual assets ecosystem remains secure for consumers and investors while being a progressive environment for compliant entities. Market enforcement actions send a reinforcing message: VARA will not tolerate any attempts to operate without appropriate licenses, nor will we allow unauthorized marketing of virtual asset activities. Our marketing regulations further emphasize Dubai’s commitment to ensuring transparency and always protecting stakeholder interests.”
All entities in question have been instructed to immediately cease all activities and desist from undertaking any marketing or advertising of virtual asset services.
Fines issued in this round range from AED 50,000 ($13,000) to AED 100,000 ($27,000) per entity, depending on the nature and severity of the specific instance of such violation.
VARA announced its marketing regulations
This comes just after VARA came out with its marketing regulations, which it states is aimed at strengthening the regulatory framework for Virtual Asset Service Providers (VASPs) operating in Dubai but whose effects transcends to the entire UAE and GCC region. VARA introduced a comprehensive Marketing Guidance Document to provide clear and actionable insights for VASPs engaging in marketing activities within the region. The new regulations came into effect on October 1st 2024.