Virtual Asset Regulatory Authority has issued formal orders requiring two cryptocurrency exchanges to halt their activities after determining that they were operating without proper authorization.
The regulator stated that the platforms KuCoin and MEXC may have been providing digital asset trading services to residents of Dubai without obtaining the required regulatory approval.
According to VARA, the exchanges may also have misrepresented their legal status while offering virtual asset related services within the jurisdiction.
The authority issued a cease and desist directive covering all unlicensed virtual asset activities. In its official notice regarding KuCoin, VARA warned investors and consumers about the risks associated with engaging with unlicensed platforms.
The regulator explained that dealing with companies that do not comply with VARA regulations, rulebooks, and applicable laws in the United Arab Emirates could expose users to serious financial risks and possible legal consequences for breaching regulatory or criminal laws.
VARA also clarified that KuCoin does not hold a license to provide cryptocurrency services in or from Dubai. As a result, any services promoted or carried out by the exchange in the region would be considered a violation of the regulator’s rules.
The regulatory framework governing digital assets in Dubai was introduced about four years ago and requires all virtual asset service providers to obtain proper licensing before operating in the market.
One day before issuing the notice against KuCoin, VARA released a similar warning involving MEXC. The statement contained the same message and instructed the exchange to immediately stop all activities related to virtual assets in or from Dubai. #cryptonews https://t.me/coinsignalpublic https://coinsignals.net
