Dubai’s digital assets regulator said cryptocurrency exchange KuCoin has been operating without the necessary regulatory approvals and licensing, and must cease and desist from serving clients in the region.

“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,” the Virtual Assets Regulatory Authority (VARA) said in a statement.

“Any promotion, advertising, or solicitation related to Kucoin has not been approved by VARA, and the company is therefore not allowed to offer, promote, or market any Virtual Asset products or services in Dubai or to its residents,” the regulator added, advising consumers and investors in Dubai to avoid engaging with Kucoin.

The alert comes just weeks after Austria’s financial regulator prohibited the European arm of KuCoin from conducting new business and onboarding customers due to a lack of appropriate compliance staff.

A few months earlier, Austria’s finance regulator, FMA, granted KuCoin a Markets in Crypto Assets (MiCA) permit to operate across the European Union.

KuCoin, a Seychelles-based cryptocurrency exchange founded in China in 2017, is now one of the largest offshore crypto platforms, ranked in the top 10 by trading volume.

“Regulatory frameworks for digital assets are developing rapidly across many jurisdictions, and regulators are increasingly clarifying their expectations for the industry,” a KuCoin spokesperson said. “KuCoin respects applicable laws and regulatory processes globally and maintains a cooperative approach with regulators while supporting the development of a responsible digital asset ecosystem.”

UPDATE (March 5, 09:58 UTC): Adds KuCoin comment in last paragraph.

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Author: Ian Allison