Dubai’s Virtual Asset Regulatory Authority (VARA) issued a market alert against KuCoin and related entities, saying the exchange has been offering virtual asset services to Dubai residents without being regulated and instructing it to cease unlicensed activity, according to a report updated March 5.
VARA said the companies lacked the required approvals and misrepresented their licensing status, warning that unlicensed providers may expose consumers to significant financial risk and potential legal consequences under Dubai’s licensing framework. The report also pointed to parallel pressure in Europe, citing an Austrian regulator move in February 2026 that stopped KuCoin EU from onboarding new business over AML breaches and compliance staffing gaps.
Next, stakeholders will track whether KuCoin clarifies its Dubai licensing posture, how enforcement timelines and customer communications are sequenced, and whether additional supervisory actions follow as regulators tighten expectations around onboarding, disclosures, and risk controls.
Source: Vara.
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.
