Dubai’s Virtual Assets Regulatory Authority (VARA) has ordered MEXC and KuCoin to immediately cease all unlicensed activity. The regulator warned that engaging with these platforms exposes investors to financial and legal risks. This crackdown follows a broader enforcement trend and coincides with increased regional scrutiny of cryptocurrency flows amid geopolitical tensions.
Dubai’s Virtual Assets Regulatory Authority (VARA) has ordered crypto exchanges MEXC and KuCoin to immediately halt all unlicensed operations. The regulator stated that MEXC’s affiliates do not hold a VARA license and warned investors of the risks involved.
VARA issued a similar warning against KuCoin one day prior. The agency advised consumers to avoid the exchange, noting “VARA advises consumers and investors in Dubai to avoid engaging with Kucoin or the purpose of Virtual Asset services, and to exercise caution when considering interactions with unregulated entities.”
This recent enforcement continues Dubai’s strict regulatory posture. In October 2025, VARA fined 19 firms for unlicensed activity, with penalties ranging from $27,000 to $163,000.
The crackdown comes as cryptocurrency activity surges in the broader Middle East region. Recent tensions have reportedly led to a 700% surge in crypto activity across Iran, with the government using it to bypass U.S. sanctions.
U.S. authorities have shifted focus to crypto exchanges for potentially aiding Iran. Although Binance has denied facilitating illicit capital flows, this pressure may be influencing regional regulators like VARA.
The UAE is also reportedly exploring freezing Iranian assets to block Tehran’s foreign currency access. A January report from TRM Labs found the Iranian regime accounted for half of the country’s crypto activity, making it a key financial lifeline.
