Dubai issues cease-and-desist notice to crypto exchange

Core Viewpoint - Dubai's Virtual Assets Regulatory Authority (VARA) has issued a cease-and-desist order against cryptocurrency exchange KuCoin for potentially operating without proper authorization in the emirate [1][2][4]. Regulatory Actions - VARA stated that KuCoin and several related entities may have been offering virtual asset services to Dubai residents without the required license [2][5]. - The regulator has instructed KuCoin to immediately stop all unlicensed activities targeting users in Dubai [2][6]. - VARA identified multiple entities linked to KuCoin, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH, as potentially providing services without approval [3][4]. Compliance Requirements - VARA emphasized that KuCoin does not hold a license to provide virtual asset services in or from Dubai, making any related activities a breach of local crypto regulations [4][5]. - Under Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111/2022, all crypto service providers must obtain a license before offering services to users in the jurisdiction [5][6]. - Any promotions, advertising, or solicitations related to KuCoin have not been approved by VARA [5][6]. Regulatory Framework - VARA is responsible for supervising and monitoring virtual asset activities across Dubai, excluding the Dubai International Financial Centre (DIFC) [7]. - The regulator has introduced a licensing regime to ensure crypto companies operate within a structured legal framework while protecting investors and maintaining market integrity [7].