Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a directive for cryptocurrency exchange KuCoin to cease operations in the region, citing a lack of necessary licenses. The regulator emphasized that KuCoin is not authorized to provide virtual asset services from Dubai.
In a formal statement, VARA clarified, “KuCoin does not hold any licence to provide virtual asset services in/from Dubai. Any activities related to Virtual Assets advertised or conducted by this company are therefore in breach of the VARA Regulations.” The authority further warned that any promotional activities linked to KuCoin have not received approval, thus prohibiting the company from marketing its products or services to Dubai residents.
This announcement follows recent actions taken by Austria’s financial regulator, which barred KuCoin’s European operations from onboarding new customers due to compliance issues. Just months prior, Austria’s Financial Market Authority (FMA) had granted KuCoin a Markets in Crypto Assets (MiCA) permit, allowing it to operate within the European Union.
Founded in China in 2017 and currently based in Seychelles, KuCoin has grown to become one of the largest offshore cryptocurrency exchanges, consistently ranking among the top ten platforms by trading volume. The recent regulatory challenges in both Dubai and Austria raise questions about the exchange’s future operations and compliance strategies.
Dubai's VARA has ordered KuCoin to stop operations due to licensing violations, coinciding with similar actions in Austria. The exchange faces increasing scrutiny as it navigates regulatory landscapes in multiple jurisdictions.