Dubai Cracks Down on KuCoin

Dubai's Virtual Assets Regulatory Authority (VARA) identified multiple entities operating under the KuCoin brand, including Phoenixfin Pte Ltd, MEK Global Limited, and Peken Global Limited. VARA stated that these firms may be misrepresenting their licensing status to residents. The order to halt operations is based on Dubai Law No. 4 of 2022, which established VARA and requires all virtual asset service providers to be licensed to operate legally within the emirate. The regulator has made it clear that any promotion, advertising, or solicitation by KuCoin has not been approved. This enforcement action is part of a broader trend of VARA tightening its oversight of the digital asset market. In 2025, the authority penalized 19 other firms for similar violations, with fines ranging from approximately $27,000 to $163,000. The move in Dubai comes shortly after KuCoin faced regulatory headwinds in Europe. Austria's Financial Market Authority recently suspended KuCoin's EU entity from taking on new clients due to shortcomings in its anti-money laundering compliance. KuCoin has faced more severe legal challenges elsewhere. In March 2024, the U.S. Department of Justice charged the exchange and its founders with operating an unlicensed money transmission business and failing to maintain an adequate anti-money laundering program. The DOJ alleged the platform received over $5 billion in suspicious and criminal funds.