Dubai virtual asset regulator issues cease and desist orders for 7 VASP entities

The Digital Belongings Regulatory Authority (VARA), in its efforts to take more durable motion in supporting and holding the general public secure, has introduced that as a part of its enforcement program it will likely be issuing orders, together with related fines, to seven entities for working and not using a license and for violating advertising laws.

The enforcement message on the VARA web site famous that VARA requests the general public to not have contact with firms and not using a allow. As decided, interacting with such entities exposes people and establishments to important monetary and reputational dangers.

Solely entities licensed by VARA can supply digital asset providers

It clearly acknowledged, “Solely firms licensed by VARA are licensed to supply digital asset providers in/from Dubai, and the Authority stays steadfast in its dedication to guard customers and buyers and keep market integrity. ”

The Regulatory Affairs and Enforcement division at VARA additionally famous: “Our precedence is to make sure that Dubai’s digital asset ecosystem stays secure for customers and buyers whereas remaining a progressive surroundings for compliant entities. Market enforcement actions ship a reinforcing message: VARA won’t tolerate makes an attempt to function with out correct licensing, nor will we permit unauthorized advertising of digital asset actions. Our advertising guidelines additional emphasize Dubai’s dedication to making sure transparency and at all times defending the pursuits of stakeholders.”

All affected entities have been instructed to right away stop all operations and chorus from advertising or promoting any digital asset providers.

Fines imposed on this spherical will vary from AED 50,000 ($13,000) to AED 100,000 ($27,000) per entity, relying on the character and severity of the particular case of such violation.

VARA introduced its advertising laws

This comes simply after VARA got here out with its advertising guidelines, which it says are aimed toward strengthening the regulatory framework for Digital Asset Service Suppliers (VASPs) working in Dubai, however with impacts throughout the UAE and GCC area transcend. VARA has launched a complete Advertising Steerage Doc to supply clear and actionable insights to VASPs engaged in advertising actions within the area. The brand new laws got here into impact on October 1, 2024.