The Dubai Virtual Asset Management Authority (VARA) has issued a cease and desist order against four companies linked to Kucoin, stating that the exchange was operating without a license and had provided false information about its legal status.
VARA's move comes after the Austrian financial regulator made a similar decision a few weeks ago, indicating a stronger coordinated effort to tighten regulation of the exchange across multiple countries.
Why this is important:
- Users in Dubai may face direct financial risks if they store assets on a platform that is not under local legal protection.
- The allegations that Kucoin provided false information about its legal status have raised concerns about the exchange's compliance, potentially impacting its ability to obtain licenses in other markets.
- Regulatory bodies in Europe and the Middle East are demonstrating a zero-tolerance stance towards unlicensed operations, leading to increasingly stringent compliance requirements across the industry.
Specific details:
- VARA confirms that Kucoin does not have a license to provide virtual asset services in or from Dubai.
- The regulatory authority has ordered a complete halt to all promotion, advertising, and solicitation of Kucoin from customers residing in Dubai.
- Four companies using the Kucoin brand have been ordered to cease operations.
- Kucoin responded that they “respect regulations and laws worldwide” and are always proactive in cooperating with government regulatory agencies.
The bigger picture:
