Dubai’s Virtual Assets Regulatory Authority Issues Market Alert Against KuCoin Over Unlicensed Virtual Asset Services

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued an investor and marketplace alert concerning entities operating under the KuCoin brand, warning that the platform may be offering virtual asset services to Dubai residents without the required regulatory approval.

The alert relates to several companies associated with the exchange, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and Kucoin Exchange EU GmbH, which collectively advertise services through the domain kucoin.com. According to VARA, the entities may have been providing virtual asset services in or from Dubai while misrepresenting their licensing status.

As a result, the regulator has instructed the companies to cease and desist from all unlicensed virtual asset activities targeting residents of the emirate.

Under Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111/2022, any entity offering virtual asset services within Dubai must obtain authorisation from VARA. The authority confirmed that KuCoin does not hold a licence to provide such services in the jurisdiction. Consequently, any promotion, advertising, or solicitation related to the platform has not been approved by the regulator.

VARA warned that engaging with unlicensed providers may expose investors to significant financial risks and potential legal consequences, as these entities operate outside the framework of the authority’s rulebooks and oversight mechanisms.

The notice forms part of broader regulatory efforts to strengthen investor protection and ensure that digital asset platforms operating in the region comply with local legal requirements.