The emirate is cracking down hard on crypto firms flying under its radar. And if you’re operating in the city’s crypto space, you might want to take note.
Seven companies were just hit with fines between 50,000 to 100,000 dirhams each, along with cease-and-desist orders, for offering crypto services without proper licensing.
They were also busted for breaking Dubai’s super-strict marketing rules on how crypto services can be advertised.
Dubai’s crypto industry is growing, but that growth comes with serious regulation. If you’re thinking about starting a crypto-related venture or are already running one, make sure your house is in order.
Miss a step, and you could face fines or even a total shutdown. Even if you’re not directly offering virtual asset services but just marketing them, you could still face fines.
“VARA will not tolerate any attempts to operate without appropriate licenses,” Dubai’s crypto regulator said in a statement.
So how do you get in line?
- Get a license from VARA if you want to offer crypto services in Dubai — whether that’s advisory, exchanges, or custody. No license? No dice.
- Your ads need to slap a big disclaimer up front that says: “Virtual assets may lose their value in full or in part and are subject to extreme volatility.”
- Lock down your risk management, your anti-money laundering protocols and make sure your internal systems can pass a spot check. VARA loves to drop in unannounced.
Enjoy the tax-free perks, but don’t skip the paperwork.
