Dubai’s Digital Assets Regulatory Authority has ordered KoCoin Exchange EU Gmbh, which operates as CoCoin – to cease and desist its operations in the emirate. According to Friday’s announcement.
The Virtual Asset Regulatory Authority (VARA) said that the cryptocurrency exchange does not have a license to provide digital asset services in Dubai, and is therefore not allowed to operate there.
“It has come to VARA’s attention that the company (KuCoin) may be providing virtual asset activities to Dubai residents without the necessary regulatory approval and misrepresenting the licensing status.” The notice reads. “As a result, the company has been directed to cease and desist all unlicensed VA activities.”
The regulator’s announcement warns investors that engaging with unlicensed companies can pose “significant financial risks” and advises them not to use KuCoin.
In response to the news, KuCoin indicated that it operates through different entities in different geographic jurisdictions, KuCoin Exchange EU GmbH “operates as a MiCAR regulated entity focused on the European Union (EU) market” and does not accept non-EU users or conduct marketing activities outside the territory.
A company spokesperson said: “Regulatory frameworks for digital assets are evolving rapidly in many jurisdictions, and regulators are increasingly clarifying their expectations for the industry.” Decrypt. “KuCoin respects globally applicable laws and regulatory processes and maintains a cooperative attitude with regulators while supporting the development of a responsible digital asset ecosystem.”
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It was not immediately clear whether the exchange would seek the appropriate regulatory approvals to operate in the emirate, and a representative did not immediately respond. to hide the question
In addition to KuCoin, the crypto exchange was MEXC issued a notice of the same March 4 by organizer. However, the regulator has not formally requested that the company cease and desist services, despite stating that MEXC is not permitted to “offer or promote” virtual asset services in the emirate.
A MEXC representative did not immediately respond to hide Request for feedback.
