Dubai’s digital-asset regulator has issued cease-and-desist notices to several crypto exchanges. The move is part of a broader effort to tighten oversight of non-licensed firms operating within the region.
Dubai's VARA Issues Cease-and-Desist Notices to KuCoin, MEXC
6 March 2026 - 13:53 CET
On 5 Mar, the Virtual Assets Regulatory Authority (VARA) issued two separate notices to KuCoin and MEXC. VARA has warned the two exchanges to cease all activities in Dubai or face legal consequences. The two firms were allegedly operating without a licence, a requirement for all virtual asset activities in the United Arab Emirates (UAE).
UAE’s systemic regulatory framework
The UAE's systemic regulatory framework consists of seven emirates that possess specific discretionary powers while operating under the country’s central government. In recent years, the UAE has emerged as a leader in the region by establishing a clear crypto licensing regime and a structured regulatory framework.
Crypto firms can obtain licenses from dedicated regulators based on their specific operational requirements. Within this framework, a license from VARA is mandatory for any firm operating in or from Dubai. The regulator has built a reputation for taking strict enforcement action against unregulated operations to maintain market integrity.
KuCoin’s KCS token is down close to 3% in the last 24 hours, trading at $7.81 at 12:50UTC. MEXC’s MX token is trading almost flat at $1.84 at 12:50UTC.
