Dubai Regulator Orders Unlicensed KuCoin Entities to Cease Local Virtual Asset Operations

Dubai's Virtual Assets Regulatory Authority (VARA) issued a formal cease and desist order on March 5, 2036, compelling several entities operating under the KuCoin brand to immediately terminate all virtual asset activities within or originating from the Emirate of Dubai. This regulatory action was based on the determination that these specific KuCoin-affiliated operations lacked the requisite license mandated by local statutes, citing violations of Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022 governing digital assets.

VARA explicitly named Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and Kucoin Exchange EU GmbH as the entities subject to this immediate cessation directive, signaling a rigorous enforcement posture within the jurisdiction. The regulatory body underscored that these entities had been commercially advertising their services, potentially misleading Dubai residents regarding their official licensing standing within the evolving digital asset ecosystem. VARA further stipulated that any form of promotion, advertising, or solicitation associated with the KuCoin brand directed toward Dubai residents is now prohibited, reinforcing the jurisdictional reach of its licensing requirements.

This enforcement action is significant given the substantial growth in the region's crypto sector; Chainalysis data indicated the UAE achieved the top global ranking for cryptocurrency activity growth in 2025, alongside a reported 210 percent surge in crypto adoption that same year. The directive aligns with heightened global regulatory scrutiny, following a similar action taken against a KuCoin entity in Europe weeks prior. In February 2026, Austria's Financial Market Authority (FMA) prohibited KuCoin EU from onboarding new customers, citing Anti-Money Laundering (AML) compliance concerns, despite KuCoin EU asserting its status as a MiCAR-regulated entity serving only the European Union market.

VARA demonstrated its commitment to regulatory adherence in the preceding year, having issued fines to nineteen distinct companies throughout 2025 for operating outside the established framework. In response to the Dubai order, a KuCoin Spokesperson communicated that the exchange respects all applicable laws and endeavors to engage cooperatively with regulatory bodies worldwide, clarifying that KuCoin Exchange EU GmbH operates strictly as a MiCAR-regulated entity serving only non-UAE users.

VARA issued a direct warning to all investors, emphasizing the significant financial hazards and potential legal ramifications inherent in engaging with any platform operating without the necessary local authorization in Dubai. This intervention reinforces the principle that regional compliance, as established by frameworks like Dubai Law No. (4) of 2022, supersedes general international operations when servicing local residents. The move by VARA is a procedural step to ensure that the high volume of crypto activity growth in the UAE, which ranked first globally in 2025, is conducted under a fully licensed and supervised environment.