Dubai regulator flags KuCoin for unlicensed crypto services in UAE

Dubai’s digital assets regulator has warned that cryptocurrency exchange KuCoin has been operating in the emirate without the required authorisation.

The alert from the Virtual Assets Regulatory Authority (VARA) states that the platform does not hold a licence to provide virtual asset services in or from Dubai.

As a result, the regulator said the company must cease offering services to clients in the region.

The notice also cautioned residents and investors against interacting with the exchange.

The development comes as regulators tighten oversight of crypto trading platforms and enforce licensing rules for firms seeking access to major financial hubs.

Vara warning on KuCoin activity

Dubai’s Virtual Assets Regulatory Authority issued a statement saying KuCoin has not received approval to operate within the emirate’s regulatory framework.

According to the regulator, the exchange does not hold any licence to offer virtual asset services in or from Dubai.

This means activities involving the platform in the local market fall outside permitted operations under VARA regulations.

The authority said that any services advertised or conducted by KuCoin in relation to digital assets are therefore in breach of rules governing the emirate’s crypto sector.

Dubai established VARA to regulate the growing digital asset industry and requires companies offering crypto services to obtain licences before operating or targeting local users.

Marketing and promotion restrictions

VARA also stated that KuCoin has not received approval to promote or advertise virtual asset services in Dubai.

The regulator said any promotion, marketing, or solicitation connected to KuCoin has not been authorised.

As a result, the company is not allowed to offer, promote, or market virtual asset products or services to residents of Dubai.

The authority further advised investors and consumers in the emirate to avoid engaging with the exchange, stressing that its services have not been cleared by the regulator.

Dubai has positioned itself as a hub for digital asset companies, but firms must secure licences from VARA before providing services to clients in the emirate.

Recent scrutiny from European regulators

The warning from Dubai arrives shortly after regulatory action against KuCoin’s European operations.

Austria’s financial regulator recently blocked the exchange’s European arm from conducting new business and onboarding customers.

The restriction was imposed because the platform lacked sufficient compliance staff to meet regulatory requirements.

The action highlighted concerns about operational readiness and regulatory supervision in the region.

European authorities have increased scrutiny of crypto exchanges as the new regulatory framework for digital assets takes effect across the European Union.

KuCoin’s global footprint

KuCoin is a Seychelles based cryptocurrency exchange founded in China in 2017.

Over the years, it expanded into one of the largest offshore trading platforms.

The exchange is currently ranked among the top ten cryptocurrency platforms globally by trading volume.

Earlier in the year, Austria’s finance regulator FMA granted KuCoin a Markets in Crypto Assets permit.

The authorisation allows the exchange to operate across the European Union under the bloc’s MiCA regulatory framework.