• Dubai’s VARA has warned that KuCoin is operating without a license as it offers crypto services to residents immediately.
• KuCoin marketing in Dubai has not been approved by the emirate’s virtual asset regulations.
• The alert follows Austria’s move to block KuCoin EU from onboarding customers due to compliance concerns.

Dubai’s digital asset regulator has issued a public notice against the KuCoin cryptocurrency exchange for lacking operation authorization.

The exchange has been asked to immediately stop operations because investors could face financial and legal risks.

VARA Flags KuCoin Over Unlicensed Crypto Services

The Virtual Assets Regulatory Authority stated that KuCoin does not hold permission to provide virtual asset services in Dubai. The regulator said any activity linked to the platform breaches the emirate’s regulatory framework.

According to VARA, the exchange may have offered services to Dubai residents through its global platform. Authorities also said promotional material linked to the exchange appeared without regulatory approval.

A public notice from the regulator stated that KuCoin must cease all unlicensed virtual asset activities. The authority also warned residents against interacting with the platform for digital asset transactions.

Any continued operation targeting Dubai residents would violate the regulatory regime.

Entities Linked to KuCoin Named in Regulatory Alert

The regulator also identified several entities connected to the KuCoin platform. These entities allegedly operate or promote services associated with the exchange.

Authorities named Phoenixfin Pte Ltd, MEK Global Limited, and Peken Global Limited in the notice. KuCoin Exchange EU GmbH also appeared among the entities listed in the warning.

VARA said these companies are associated with services advertised under the KuCoin brand. The services reportedly operate through the domain kucoin.com.

The regulator added that the exchange misrepresented its regulatory status within the jurisdiction. Authorities stated that any claim of authorization in Dubai is inaccurate.

VARA also clarified that the exchange cannot promote or advertise virtual asset services in the emirate. All marketing campaigns targeting Dubai residents remain prohibited.

Enforcement Actions and Global Compliance Concerns

Authorities said those companies were required to stop unlicensed operations immediately or they could face penalties ranging from AED 100,000 to AED 600,000.

The enforcement actions formed part of VARA’s broader regulatory supervision program. KuCoin has also faced regulatory challenges in other jurisdictions.

Austria’s Financial Market Authority recently restricted the European arm of the exchange.

Despite these regulatory concerns, KuCoin has a daily trading volume of roughly $2.19 billion and more than 1,001 cryptocurrencies across 1,670 trading markets.

This wide listing strategy continues to attract traders focused on emerging digital assets.