Dubai’s Virtual Assets Regulatory Authority, or VARA, has ordered KuCoin to immediately stop offering virtual asset services to residents in the UAE. The notice says the exchange does not hold the license required to provide crypto services in or from Dubai, meaning all unlicensed activity tied to the emirate must cease. The order was issued around March 5–6, 2026. It applies to UAE users only and does not amount to a global shutdown of KuCoin.
VARA says KuCoin promoted and provided services without approval
According to the regulator’s notice, KuCoin’s Dubai-related activity breached local rules because the platform promoted and offered virtual asset services without authorization. Under Dubai Law No. 4 of 2022, any company serving residents with cryptocurrency-related products must first obtain approval from VARA. The authority said that promotion, solicitation, or trading services aimed at UAE users without a license are illegal.
The cease-and-desist order also covers several linked entities: Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH. VARA added a warning for investors, saying the use of unlicensed crypto platforms can expose users to financial and legal risks. The language was unambiguous.
Dubai action adds to earlier pressure from the US and Europe
The Dubai case follows a series of regulatory actions against KuCoin in other markets over the last two years. The source outlines a clear sequence. In March 2024, the U.S. Department of Justice charged the exchange with operating an unlicensed money-transmitting business. In early 2025, KuCoin resolved that case by paying about $297 million in penalties and forfeitures and agreed to leave the U.S. market for two years. Then in February 2026, Austria’s financial regulator partially suspended KuCoin EU operations under MiCA rules because of missing AML and sanctions compliance officers.
There is no confirmed evidence that regulators coordinated these steps. Even so, the timing points to tougher scrutiny across jurisdictions for exchanges serving local users without local authorization.
Dubai keeps its crypto hub strategy while tightening enforcement
Dubai has spent the past few years building its position as a global digital asset hub. The source says roughly 25% to 31% of the UAE population owns or uses digital assets, equal to about 3 million to 3.78 million people. It also recorded around $56 billion in crypto inflows in 2024–2025, a 33% year-over-year increase, with Dubai accounting for nearly 45% of the country’s blockchain activity.
That expansion has been paired with a structured VASP licensing framework under VARA. Enforcement has also become more visible. In October 2025, VARA fined 19 unlicensed crypto firms operating in the region. In January 2026, the Dubai Financial Services Authority banned privacy coins such as Monero and Zcash, while allowing only fully fiat-backed stablecoins with clear reserves and audits.
The case adds to a broader regulatory pattern: if an exchange serves residents in a jurisdiction, authorities increasingly expect it to hold a local license.