فريق إنت عربي
- Virtual Assets Regulatory Authority suspends KuCoin licenses and affiliated entities over misleading information
- The regulator warned that any promotion conducted through the platform was unauthorized and could expose users to financial and legal risks.
The Virtual Assets Regulatory Authority (VARA) has suspended the licenses of cryptocurrency exchange KuCoin and its associated entities for providing virtual asset services without proper regulatory approvals.
In a Thursday alert to investors, VARA stated that Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and Kucoin Exchange EU GmbH, all operating commercially under the KuCoin brand, may have been offering virtual asset activities to Dubai residents without a valid license and providing misleading information about their regulatory status.
VARA emphasized that all such activities violate UAE laws and regulations, including Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111 of 2022, which require all virtual asset service providers to obtain an official license to operate legally.
The authority also highlighted that any promotion, marketing, or solicitation related to KuCoin had not been approved, warning users of the financial and legal risks associated with dealing with unlicensed platforms.
VARA urged Dubai residents to verify that companies are listed in the public register of licensed service providers before engaging in any transactions and to report any suspected unlicensed activity directly to the regulator.
The Dubai warning follows the Austrian Financial Market Authority (AFMA) freezing new operations for KuCoin EU in Vienna, citing failures to comply with anti-money laundering, counter-terrorist financing, and sanctions obligations.
KuCoin’s European management said it voluntarily paused onboarding of new users and some trading activities while working to refill critical positions and ensure full regulatory compliance.
“The company operates through multiple entities across different jurisdictions. Regulators may reference specific entities in public notices, but each entity operates within its own regulatory scope.”
The spokesperson added that digital asset regulations are “rapidly evolving across multiple countries,” and affirmed that KuCoin respects “applicable laws and regulatory processes globally.”
