In its mission to safeguard investors and consumers and uphold the integrity of the virtual asset market, the Virtual Assets Regulatory Authority [VARA] holds the authority to take enforcement actions at its sole discretion. These actions may be directed toward any entity found in violation of the applicable laws or its regulations, rules or directives.

In a recent enforcement action, VARA issued cease-and-desist orders to seven unlicensed entities operating within its jurisdiction for contraventions of marketing regulations. Fines imposed ranged from AED 50,000 to AED 100,000, determined by the severity of each violation.

A main tenet of VARA’s regulatory framework is that only licensed firms are authorized to offer virtual asset services, ensuring that all market participants meet VARA’s regulatory standards. VARA’s proactive enforcement actions serve as a clear public warning that non-compliance will not be tolerated.

Both individuals and institutions are strongly advised to exercise caution and avoid engaging with unlicensed entities, as such interactions carry significant financial, reputational, and legal repercussions.