Dubai regulator orders KuCoin to halt 'unlicensed' crypto services

Dubai's Virtual Assets Regulatory Authority on Thursday ordered four affiliated entities trading as KuCoin to immediately cease all "unlicensed" virtual asset activities, saying the exchange does not hold the required authorization to operate in or from Dubai.

In a public statement, the regulator identified Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH — all commercially advertising under the KuCoin brand and domain — as operating illegally. 

According to the statement, KuCoin does not hold any license to provide virtual asset services under Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, which mandate all virtual asset service providers be licensed to operate legally in the jurisdiction.

Additionally, “any promotion, advertising, or solicitation related to KuCoin has not been approved by VARA,” and the exchange has been barred from offering, promoting, or marketing any crypto products or services in Dubai or to its residents, per the statement. 

VARA said KuCoin may have been providing services to Dubai residents while “misrepresenting” its licensing status, and warned that engaging with non-compliant entities exposes users to financial risk and potential legal consequences under applicable UAE laws.

“VARA advises consumers and investors in Dubai to avoid engaging with KuCoin for virtual asset services, and to exercise caution when considering interactions with unregulated entities,” the regulator said.

The Dubai directive follows a separate regulatory action in the European Union. Austria’s Financial Market Authority recently prohibited KuCoin’s European subsidiary from conducting new business or onboarding clients. 

While the FMA had previously granted KuCoin a Markets in Crypto Assets (MiCA) permit to operate across the European Union, the subsequent business restriction was linked to a deficit in required compliance personnel.

The Block reached out to KuCoin for comment.