[NEWS] Dubai's Cryptocurrency Watchdog fines and suspends seven cryptocurrency companies

Dubai's Crypto Asset Regulatory Authority (VARA) has cracked down on cryptocurrency companies that violated marketing regulations, including operating unauthorized cryptocurrency exchanges. It has fined seven cryptocurrency companies between $13,600 and $27,200 and issued suspension orders.

VARA said in a statement, "VARA will not tolerate any attempt to operate without the proper licenses, nor will it permit unauthorized marketing of crypto assets. Our marketing regulations further underscore Dubai's commitment to ensure transparency and protect the interests of stakeholders."

VARA also ordered the fined companies to cease all cryptocurrency-related activities, including marketing and promotional activities involving digital assets.

According to VARA's Regulatory Affairs and Enforcement Department, the department's order is to maintain a safe and law-abiding environment for investment and trading, and provide an ideal environment for law-abiding organizations.

This is part of VARA's efforts to crack down on cryptocurrency marketing. On the 26th of last month, VARA ordered companies advertising cryptocurrency investments to include a warning that "these investments are volatile and may decline in value."

VARA CEO Matthew White said in a statement, "The new regulations are designed to harmonize VARA's operations, promote market transparency and trust, and ensure that cryptocurrency providers operate responsibly."

The seven cryptocurrency companies that were ordered to suspend operations violated marketing regulations. These violations included deceptive advertising and not obtaining the necessary licenses to conduct promotional activities.

VARA made it clear that it would not tolerate such violations and stressed that violators would be subject to heavy fines and sanctions.

Licenses granted to OKX, Binance, and Crypto.com

Dubai recently granted licenses for cryptocurrency trading and financial services to cryptocurrency exchanges OKX, Binance, Crypto.com, and others. Last year, Solana-based NFT wallet app Backpack was approved as a cryptocurrency exchange service provider. The company began operating the cryptocurrency exchange Backpack Exchange.

In August, a court order approved companies to use cryptocurrencies to pay workers, effectively legalizing the use of cryptocurrencies, and the use of cryptocurrencies in Dubai is more advanced than in other countries.

Reference: VARA
Image: Shutterstock

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