Dubai crypto regulator orders KuCoin to cease operations for operating without proper license.
Regulation & Gov ·
Dubai's Virtual Assets Regulatory Authority (VARA) ordered cryptocurrency exchange KuCoin to cease operations in the emirate, stating the platform lacks the necessary regulatory approvals and licensing to provide virtual asset services there. VARA said any promotion or advertising by KuCoin has not been approved and advised consumers to avoid the exchange. The regulator emphasized that KuCoin's activities violate VARA regulations and the platform is prohibited from offering or marketing virtual asset products to Dubai residents.
The enforcement action follows a similar move by Austria's financial regulator weeks earlier, which restricted the European arm of KuCoin from onboarding new customers citing insufficient compliance staff. This contrasts with Austria's earlier grant of a Markets in Crypto Assets permit to KuCoin, which was meant to enable operations across the European Union. The enforcement actions suggest mounting regulatory pressure on the Seychelles-based exchange across multiple jurisdictions.
KuCoin responded that it respects applicable laws and maintains a cooperative approach with regulators globally while supporting responsible digital asset ecosystem development. However, the specifics of how the platform intends to address the Dubai cease-and-desist order remain unclear, as does whether other jurisdictions may follow with similar enforcement actions.