The local regulator said the two exchanges were offering trading services without the necessary permits.
The Virtual Asset Regulatory Authority (VARA), which is the main regulator of cryptocurrency-related businesses in Dubai, has issued an official cease and desist order to KuCoin and MEXC.
The regulator stated that it has come to the attention of popular trading platforms “may offer virtual asset activities to Dubai residents without the necessary regulatory approval and misrepresent their legal status”.
In addition to ceasing and stopping any unlicensed VA activities, the official statement on KuCoin says that investors and consumers should be aware of the potential risks.
“Dealing with unlicensed companies that do not comply with the VARA Rules, relevant Books and relevant UAE legislation exposes users to significant financial risks and potential legal consequences for violating regulatory requirements or criminal laws.”
It reiterated that KuCoin does not have any license to provide cryptographic services in or from Dubai, meaning that all such activities advertised or carried out by the exchange were “therefore in violation of the VARA Regulations.”
Dubai’s VARA introduced a comprehensive regulatory framework four years ago and requires all service providers to be legally licensed to operate in the country’s jurisdiction.
A day before this warning against KuCoin, the regulator issued a similar warning against one of its competitors – MEXC. The message was unequivocal and instructed to cease all its activities in and out of Dubai.
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