Dubai’s virtual asset regulator has issued a public warning about crypto exchange KuCoin, saying the platform may have offered services to residents of Dubai without regulatory approval.
The regulator has previously taken enforcement action against firms operating without authorization. In 2025, VARA fined 19 companies and issued cease-and-desist orders after finding they had offered crypto services outside the emirate’s regulatory framework. Financial penalties ranged from AED 100,000 to AED 600,000, and the companies were instructed to stop their unlicensed activities.
VARA Flags KuCoin Over Unlicensed Activities
The latest alert was published by the Virtual Assets Regulatory Authority. The authority said it had identified potential unlicensed activities linked to the exchange’s global platform.
According to the regulator, the company “may be providing Virtual Asset activities to Dubai residents without the necessary regulatory approvals.” VARA also alleged that the firm misrepresented its licensing status in the jurisdiction.
The warning names several entities connected to theexchange. These include Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH. VARA said the companies are associated with the platform operating through the domain kucoin.com and advertising services under the KuCoin brand.
Dubai Warns Investors on Unlicensed Firms
The authority said the exchange does not hold a licence to provide virtual asset services in or from Dubai. Any such activities would therefore breach VARA regulations.
As part of its action, the regulator instructed the company to “cease and desist all unlicensed VA activities.”
VARA also warned investors about the risks of dealing with firms that are not regulated in the emirate. According to the authority, engaging with companies that are not compliant with its rules “exposes users to significant financial risks.” It added that such interactions could also lead to legal consequences if local regulatory requirements or criminal laws are violated.
Dubai Regulator Blocks KuCoin Promotions
The regulator stated that KuCoin “does not meet these legal requirements and is not authorised to provide any Virtual Asset services in/from Dubai.” It also said that any promotion or advertising related to the exchange has not been approved. As a result, the platform is not permitted to offer, promote, or market virtual asset products or services in Dubai or to its residents.
VARA urged investors and consumers in Dubai to avoid engaging with KuCoin for virtual asset services. It also advised the public to exercise caution when interacting with unregulated entities.
This article was written by Tareq Sikder at www.financemagnates.com.
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