Dubai's Virtual Assets Regulatory Authority (VARA) recently issued fines and cease-and-desist orders to seven unidentified crypto entities for operating without proper licenses and violating marketing regulations. The action reflects the emirate's ambition to position itself as a global crypto hub. Recently, Dubai has granted licenses to prominent crypto exchanges including Binance, OKX, and Crypto.com.

VARA did not disclose the identities of the fined entities but mentioned that it is collaborating with local authorities for further investigation. The fines imposed range from 50,000 to 100,000 dirhams (approximately $13,600 - $27,200).

"All involved entities have received instructions to halt all operations and cease any marketing or advertising regarding virtual asset services," VARA stated.

This bold move is particularly notable for a region that is actively marketing itself as a crypto-friendly environment. Just earlier this month, the UAE exempted crypto transactions from value-added tax (VAT), reflecting its growing commitment to nurturing the sector. Additionally, a recent court ruling potentially lends legitimacy to the use of crypto for employee compensation.