In a region where mature and stable regulation is a priority, violating regulatory rules is taken seriously. In such a space, if any firms breach rules, the government quickly moves forward with a warning. This is about the Virtual Assets Regulatory Authority (VARA), Dubai’s digital asset regulator, which recently flagged crypto platform KuCoin over unlicensed crypto activities.
KuCoin gets cease‑and‑desist order for unlicensed crypto activities
VARA issued a formal market alert, ordering entities operating under the KuCoin firm, to stop and refrain from unlicensed activities. According to the regulator, the entities provided virtual asset services without securing proper regulatory approval.
The warning notice has been issued against Phoenixfin Pte Ltd, KuCoin Exchange EU GmbH, MEK Global Limited, and Peken Global Limited. These entities have advertised under the banner of KuCoin without the necessary permissions.
“Kucoin does not hold any licence to provide Virtual Asset services in/from Dubai. Any activities related to Virtual Assets advertised or conducted by this company are therefore in breach of the VARA Regulations,” read a clear statement from VARA.
KuCoin might cause risks to consumers
Unlicensed firms engaging the market can cause potential financial risk to users and legal consequences. It is a well-known fact that any digital asset providers in the jurisdiction must secure a VARA license to operate legally; however “KuCoin does not meet these legal requirements and is not authorised to provide any Virtual Asset services in/ from Dubai.”
The digital asset regulator has also advised investors and consumers to stop engaging with KuCoin for any crypto-related services, and stay cautious when accessing the services of such unregulated entities.
VARA fines 19 firms for unauthorized crypto operations
KuCoin’s case is not the first incident in Dubai. In 2025, VARA cracked down 19 firms for providing digital asset services without authorization.Depending on the severity of the violation, the Dubai regulator charged fine starting from AED 100,000 to AED 600,000.
As Dubai is trying to focus on building regulated crypto hub, unlicensed operations are fair in the region at no cost. As such, VARA is actively targeting digital asset first that provide local users with unlicensed crypto services.
