Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a public warning about the cryptocurrency exchange KuCoin. The regulator states the exchange and related entities may be offering services to Dubai residents without a mandatory license, violating local law. Authorities caution that using such unregulated platforms exposes investors to financial losses and potential legal consequences.
The Virtual Assets Regulatory Authority in Dubai has issued a public alert, warning investors about the operations of the cryptocurrency exchange, KuCoin. The regulator said the exchange may be offering virtual asset services to residents of Dubai without the proper license.
Officials also believe the company may have misrepresented Dubai’s regulatory status while operating in the region. According to the authority, the warning involves entities linked to the KuCoin platform, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH. These companies have been ordered to immediately stop all unlicensed digital asset trading activities in Dubai.
The regulator warned that using unlicensed cryptocurrency platforms like KuCoin can expose investors to serious financial risks. These risks include the possible loss of funds, lack of consumer protection, and potential legal consequences.
Authorities added that Dubai has established a clear legal framework to regulate companies operating in the virtual asset sector. Under this framework, all companies providing virtual asset services must obtain the required licenses before operating.
Because KuCoin has not met these regulatory requirements, it is not authorized to provide any virtual asset services to Dubai users. The violation pertains to Dubai Law No. 4 of 2022 and the UAE’s Cabinet Resolution No. 111 of 2022.
