VARA Fines Shelbit for Continuing Unlicensed Crypto Activities in Dubai

Dubai's Virtual Assets Regulatory Authority (VARA) has imposed financial penalties on Shelbit General Trading L.L.C., operating as Shelbit or Shelbit Exchange, for continuing to provide virtual asset services without a licence despite previous enforcement action.

According to VARA, the firm continued offering virtual asset services to customers in and from Dubai after receiving a cease-and-desist order in January 2025. The regulator also found that the company onboarded customers without conducting mandatory Know-Your-Customer (KYC) checks and promoted its services in Dubai without the required authorisation.

VARA said the identified activities pose risks beyond consumer protection, including potential cross-border financial crime concerns that could affect the integrity of the UAE financial system. The regulator stated that the conduct breached UAE anti-money laundering legislation, Dubai's virtual asset regulatory framework, and VARA's own regulations and rulebooks.

As a result, VARA has imposed financial penalties on the firm, taken additional enforcement measures, and ordered Shelbit to immediately cease all unlicensed virtual asset activities in or from Dubai.

The regulator said the public notice is intended to raise market awareness and remind consumers to conduct their own due diligence when dealing with virtual asset service providers.