Virtual Assets Regulatory Authority has issued a warning stating that the platform has been offering crypto-related services to users in Dubai without the required regulatory approval.
In a public notice, the authority said KuCoin does not currently hold a licence to operate or provide virtual asset services within the emirate. Under Dubai’s digital asset framework, any company that intends to offer crypto trading, brokerage, or related services to residents must first obtain authorisation from the regulator.
As KuCoin has not received this licence, the authority said activities linked to the exchange that target users in Dubai fall outside the legal framework governing digital asset operations in the city. The regulator instructed all entities connected to the KuCoin brand to immediately halt any unlicensed activities tied to the Dubai market.
The warning applies not only to trading services but also to marketing and promotional activities. Regulators emphasised that companies cannot advertise or promote crypto services in the emirate unless they have received formal approval. Authorities also cautioned residents against engaging with platforms that are not licensed to operate locally, noting that unregulated services may expose users to financial risks and reduce the ability of authorities to intervene in disputes.
Dubai has taken a structured approach to regulating the crypto industry in recent years. The emirate introduced a dedicated regulatory body to oversee virtual asset activities and ensure companies follow clear rules before entering the market. The framework was designed to support innovation in blockchain technology while maintaining strong investor protection and financial oversight.
As part of this system, exchanges and other crypto service providers must go through a licensing process before launching services or targeting users in Dubai. This includes meeting compliance requirements related to consumer protection, anti-money laundering standards, and operational transparency.
The notice directed at KuCoin reflects the regulator’s continued effort to enforce these rules. While Dubai remains open to digital asset companies, authorities have made it clear that operating without approval will not be tolerated.
For exchanges seeking to expand in the Middle East, entering Dubai’s growing crypto market requires full regulatory compliance and formal licensing before services can be offered to local users.
Read also: Circle launches nanopayments for small USDC transactions