Dubai’s virtual assets regulator has issued a public warning about several companies linked to crypto exchange KuCoin, claiming they may be promoting or providing services to residents without the necessary permits.
Conclusion
- Dubai’s VARA warned Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited and KuCoin Exchange EU GmbH for promoting cryptographic services under the KuCoin brand without proper authorization.
- VARA said the entities must cease all virtual asset activities in or from Dubai and state that they are not licensed to provide regulated crypto services in the jurisdiction.
- The regulator warned that dealing with unlicensed platforms could expose users to financial and legal risks and urged investors to check whether they are listed on the official VARA register before using their services.
Dubai watchdog flags KuCoin-related companies for unlicensed crypto activities
In a regulatory notice dated March 5, the Virtual Assets Regulatory Authority (VARA) listed Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited and KuCoin Exchange EU GmbH, which it said are trading advertising services under the KuCoin brand.
According to the regulator, these entities may have been offering virtual asset services to users in Dubai “without the necessary regulatory approval” and may have misrepresented their licensing status in the jurisdiction.
As a result, VARA ordered the companies to “cease all VA activities in or from Dubai”.
Officials stressed that the exchange is not licensed to provide virtual asset services in or from Dubai, meaning any activity would be in violation of local regulations governing crypto service providers.
According to Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must obtain regulatory approval from VARA before offering services in the emirate.
VARA also warned that cooperation with unlicensed platforms can expose investors to “significant financial risks and possible legal consequences”, urging residents to check whether they are registered in the state regulatory register before interacting with them.
The regulator further noted that any advertising, promotion or solicitation related to KuCoin is not approved, meaning the platform is not allowed to market virtual asset products or services in Dubai.
Founded in 2017, KuCoin is a Seychelles-based cryptocurrency exchange that offers spot, derivatives and margin trading to users worldwide.
The warning is part of VARA’s broader efforts to enforce its crypto regulatory framework and prevent unauthorized operators from targeting investors in the emirate.
