The primary responsibility for regulatory compliance lies with VASPs, supported by VARA’s supervisory function, which provides continuous oversight to ensure adherence to virtual asset standards. In instances of non-compliance, VARA’s enforcement function undertakes further measures to uphold Dubai’s regulatory framework by preventing, detecting, and addressing any breaches of rules or misconduct. This function is integral to safeguarding the interests of virtual asset users and maintaining the industry’s integrity through credible deterrence, prompt and thorough investigations, and effective collaboration with other regulatory bodies.
VARA’s enforcement function focuses on identifying and investigating potential violations, and where necessary imposing enforcement measures and sanctions to deter future breaches, thereby helping to safeguard the integrity of the virtual asset market. VARA’s proactive enforcement strategy ensures trust and transparency, supporting the sustainable growth of Dubai’s virtual asset industry.
The following is a non-exhaustive list of the types of enforcement actions that VARA can take.
Issuing written reprimands (also known as breach letters or warning letters)
Issuing enforcement notices requiring non-compliance to be rectified within a specified period of time (accompanied if necessary with a periodic penalty payment / daily financial penalty)
Limiting or revising the scope of any Virtual Assets or VA Activities under a licence; suspending or revoking a licence
Requiring a VASP to cease any VA Activity or other business activity, either for a specified or indefinite period of time
Requiring any entity (which includes a natural person) to stop or refrain from doing or continuing to do any acts and seek a preliminary injunction or other legal means when necessary to restrain such entity, when deemed by VARA to be in the public interest
Imposing fines or other civil penalties in accordance with Schedule 3 of the Regulations or otherwise published by VARA from time to time
Imposing additional supervision, monitoring or reporting requirements
Instructing entities to take down websites or other publishing materials
Any other enforcement action determined by VARA
Below is a list of fines issued by VARA Enforcement:
| Full Name of Entity | Date | Category | Detail | Type of Enforcement Notice |
|---|---|---|---|---|
| FINCHAIN PAYMENT SERVICE PROVIDER LLC | 2024/08/23 | Unlicensed activities | A. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| FINCHAIN PAYMENT SERVICE PROVIDER LLC | 2024/08/23 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| COINCASHY COMMERCIAL BROKERS LLC | 2024/08/23 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| CRYPTO FORCE DMCC | 2024/08/23 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| STABIT DMCC | 2024/08/23 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| BTC BAY PAYMENT SERVICES PROVIDER LLC | 2024/09/03 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| KOTO CRYPTO DMCC | 2024/08/23 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| A to Z Globe DMCC | 2025/01/02 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Almizan Alfedhi Payment Service Provider L.L.C | 2025/01/02 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Binalex Point Payment Services Provider L.L.C. and Binalex Capital FZCO | 2025/01/02 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Mkan Coin DMCC | 2025/01/02 | Unlicensed activities | A. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Coin Swapz Trading DMCC | 2025/01/02 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Crypto Desk Exchange Services L.L.C | 2025/01/02 | Unlicensed activities | A. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| The Cryptoverse Technologies Est | 2025/01/02 | Unlicensed activities | A. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| CryptoHome Payment Services Provider L.L.C | 2025/01/02 | Unlicensed activities | A. Advertising and Marketing virtual asset activities in Dubai | Cease-and-desist order Financial penalty |
| Crypto Home DMCC | 2025/01/02 | Unlicensed activities | A. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Shelbit General Trading L.L.C | 2025/01/02 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |
| Shenzhou Crypto DMCC and Shenzhou Crypto DMCC REP. OFFICE | 2025/02/03 | Unlicensed activities | A. Engaging in unlicensed virtual asset activities in Dubai B. Advertising and Marketing virtual asset activities in Dubai | Cease-and-Desist Orders Financial Penalties |