Dubai Regulator Orders KuCoin to Halt Unlicensed Crypto Services for Residents

Highlights:

• Dubai Regulator orders KuCoin to stop offering crypto services in the emirate without a VARA license.
• Dubai’s VARA warns residents to avoid KuCoin and check licensed crypto platforms before trading.
• Dubai requires all crypto firms to obtain approval before offering digital asset services to residents.

Dubai’s Virtual Assets Regulatory Authority (VARA) has warned companies connected to the KuCoin crypto exchange to stop offering services without approval in the country. The regulator issued the warning through an investor and marketplace alert directed at residents and digital asset firms. VARA said several entities operating under the KuCoin brand may have been providing crypto services to Dubai users without the required authorization.

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued an emergency alert against KuCoin.

The regulator ordered the exchange and its parent companies to immediately “cease and desist” all unlicensed activities, citing unauthorized services and misrepresentation of its… pic.twitter.com/2h2Q7KgNZW

— Crypto Wave (@Crypto_Wavee) March 6, 2026

The regulator identified Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH in the notice. These companies operate internationally under the KuCoin name across several jurisdictions. However, VARA said none of the entities holds a license to provide virtual asset services in or from Dubai.

Authorities instructed the firms to cease all activities connected to digital asset services directed at residents in the emirate. Regulators said companies must obtain approval before offering exchange services, brokerage activities, or digital asset products. Officials also said companies cannot promote or advertise crypto services in Dubai without regulatory authorization.

VARA clarified KuCoin’s regulatory status in its official statement. The authority said, “KuCoin does not hold any license to provide virtual asset services in/from Dubai. Any promotion, advertising, or solicitation related to KuCoin has not been approved by VARA.”

The regulator also stated that the company cannot offer or market digital asset products to residents in Dubai. Officials added that these restrictions apply to both direct services and marketing activity targeting users in the emirate. Authorities also referred to the legal framework governing digital asset activity in Dubai. Dubai Law No. 4 of 2022 regulates virtual asset services in the emirate. Cabinet Resolution No. 111 of 2022 also requires digital asset companies to obtain approval before operating.

Authorities Urge Residents to Avoid KuCoin and Check Licensed Crypto Platforms

VARA warned Dubai residents not to use KuCoin for their digital asset services. The regulator warned that investors who engage with unlicensed platforms are at risk of financial losses. Authorities indicated that users can also face legal repercussions when they use services that violate regulatory requirements.

Regulators advised investors to ensure that a crypto company is licensed before transacting. VARA keeps a registry of companies licensed to offer digital asset services in Dubai. The database enables residents to verify the status of exchanges, custodians, and brokerage firms.

The regulator also urged residents to report suspected unlicensed activity. Authorities indicated that citizen reports make it easy to detect firms that may be trying to operate illegally. Meanwhile, VARA recently fined 19 crypto firms for operating without the required licenses in the country.

🚨 19 firms penalized by Dubai’s VARA in the last six months 🚨

Dubai’s Virtual Assets Regulatory Authority (VARA) has sanctioned 19 firms for unlicensed activities, including well-known names like Triple A, TON DLT Foundation, and LBank.

Some were licensed abroad, others… pic.twitter.com/epxI0AwaVf

— Unlock Blockchain (@unlockbc) October 7, 2025

Dubai Regulator Orders KuCoin as Global Compliance Scrutiny Around the Exchange Grows

Dubai’s warning against KuCoin comes as regulators in other jurisdictions review the exchange’s compliance operations. Authorities in Europe recently introduced actions affecting the company’s regional entity.

Austria’s Financial Market Authority froze new business activity at KuCoin EU. The Vienna-based entity had previously received authorization under the European Union’s Markets in Crypto-Assets framework after its earlier application. However, regulators cited staffing gaps in anti-money laundering and sanctions compliance roles.

In addition, Canadian regulators fined the operator of KuCoin in the country $14.09 million, the largest penalty in the country, for failing to register as a money service business. In the United States, the company’s operator pleaded guilty to operating an unlicensed money-transmitting business. The company agreed to pay nearly $300 million in a settlement in Manhattan.