Dubai Orders KuCoin Entities to Cease Unlicensed Crypto Services as Regulator Issues Investor Alert

VARA Names Multiple KuCoin-Linked Firms and Warns Exchange Has No License to Operate in the Emirate

TL;DR

• Dubai’s Virtual Assets Regulatory Authority ordered KuCoin-linked entities to halt unlicensed crypto services targeting residents.
• Regulators named several companies associated with the exchange and warned KuCoin has no authorization to operate in Dubai.
• The enforcement action follows earlier penalties against unlicensed crypto firms under Dubai’s digital asset regulatory framework.

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Dubai’s digital asset watchdog issued a cease-and-desist alert against cryptocurrency exchange KuCoin, ordering companies linked to the platform to halt virtual asset services offered to residents of the emirate. The directive was released on March 5, 2026, when the Virtual Assets Regulatory Authority announced it had identified multiple entities operating under the KuCoin brand that may have been providing services without the approvals required under Dubai’s crypto regulatory regime.

Authorities said the warning followed an internal review indicating that the exchange’s global platform and related entities may have made services accessible to users within the jurisdiction. The regulator said these activities appeared to include marketing or offering crypto-related services to Dubai residents despite the companies lacking regulatory authorization to conduct such business in the emirate.

The regulator identified several companies associated with the exchange that it said operate under the KuCoin brand, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited and KuCoin Exchange EU GmbH. Officials stated that the firms were linked to the global platform and could be involved in activities connected to the exchange’s operations accessible through the KuCoin.com website and related promotional channels.

Dubai’s regulator said the companies named in the alert must immediately stop any activities related to digital assets within the jurisdiction. Officials also warned the companies could be misrepresenting their regulatory status while providing services locally without approval from the authority responsible for supervising the emirate’s virtual asset sector.

Regulators said KuCoin does not currently hold authorization to provide digital asset services in or from Dubai. The authority said: “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.”

Officials also stated that promotions and advertising connected to KuCoin’s products or services had not received approval from the regulator. The authority said the exchange is not permitted to market or promote virtual asset services to residents of the emirate while operating without a license under the regulatory framework governing crypto activities.

The enforcement action was issued under Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111 of 2022, which established the licensing regime for companies seeking to operate within the emirate’s digital asset market. Those rules require virtual asset service providers to obtain regulatory approval before offering services or targeting customers in Dubai.

Regulators urged residents to exercise caution when interacting with platforms that do not appear on the authority’s official list of licensed providers. Officials warned that engaging with unlicensed platforms “exposes users to significant financial risks” and could also lead to legal consequences if local regulations or criminal laws are violated.

Authorities also encouraged residents to report suspected unlicensed crypto activity to the regulator. The advisory said users should verify whether platforms hold authorization before conducting transactions involving digital assets through services offered online.

Dubai’s regulator has taken enforcement actions against companies operating outside its licensing framework before. Authorities said that during 2025 they fined 19 companies found to be offering crypto services without approval and issued cease-and-desist orders as part of compliance enforcement across the sector.

Penalties imposed during those earlier actions ranged from 100,000 to 600,000 UAE dirhams, equivalent to roughly $27,000 to $163,000, according to officials involved in the enforcement program. The regulator said the actions were taken after identifying firms providing crypto services without meeting the emirate’s licensing requirements.

A spokesperson representing KuCoin responded to the regulatory alert by emphasizing that the exchange operates through several entities across different jurisdictions worldwide. The representative said the entity KuCoin Exchange EU GmbH is focused on serving markets within the European Union and operates under the regulatory framework established by the Markets in Crypto-Assets regime.

The spokesperson added that the entity does not onboard or target users outside the European Union. The representative also said: “Regulatory frameworks for digital assets are developing rapidly across many jurisdictions, and regulators are increasingly clarifying their expectations for the industry.”

The same spokesperson said the company supports regulatory engagement with authorities globally. The representative added: “We respect applicable laws and regulatory processes globally and maintain a cooperative approach with regulators while supporting the development of a responsible digital asset ecosystem.”

Dubai authorities said the cease-and-desist order remains in effect, requiring the named companies to halt unlicensed services and stop any marketing, promotional activities or service offerings directed at residents of the emirate through their platforms or related channels.

This article has been refined and enhanced by ChatGPT.