The Virtual Assets Regulatory Authority in Dubai has issued a public alert, warning investors about the operations of the cryptocurrency exchange, KuCoin.
The regulator said the exchange may be offering virtual asset services to residents of Dubai without the proper license. Officials also believe the company may have misrepresented Dubia’s regulatory status while operating in the region.
According to the authority, the warning came due to the exchange’s connection to some companies. Some of which include Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH, and others that are linked to the KuCoin platform and its operations through the website kucoin.com.
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The regulator stated that these entities may have been providing virtual asset services to residents in Dubai without receiving the required approval. Because of this, the companies have been ordered to immediately stop all activities related to digital asset trading that are not licensed under Dubai’s regulations.
Source: Cryptonary
Authorities say operating without the correct authorization is a direct violation of the emirate’s virtual asset laws, and the regulators are now warning the public to be careful when dealing with any platform that does not hold proper approval.
Kucoin Violation Risks for Investors and Consumers
The regulator warned that using unlicensed cryptocurrency platforms like Kucoin can expose investors to serious financial risks. These risks include the possible loss of funds, lack of consumer protection, and potential legal consequences if users unknowingly take part in activities that violate local regulations.
Authorities added that Dubai has established a clear legal framework to regulate companies operating in the virtual asset sector.
Under Dubai Law No. 4 of 2022 and the UAE’s Cabinet Resolution No. 111 of 2022, all companies providing virtual asset services must obtain the required licenses before operating in the region.
Because KuCoin has not met these regulatory requirements, it is not authorized to provide any virtual asset services in or to Dubai users.
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