UAE Blocks KuCoin: Crypto Exchange Halted for Operating Without License

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KuCoin Blocked In UAE As Authorities Mandate Immediate Service Stop

As an analyst, I’m tracking that KuCoin, a cryptocurrency exchange based in the Seychelles, has been directed to stop operating in Dubai. Regulators found they were providing services without the necessary licenses and approvals.

Dubai’s financial regulator, VARA, announced on Thursday that KuCoin is operating without the necessary license to offer virtual asset services within the emirate.

Dubai Bars KuCoin From Offering Services To Residents

Dubai’s financial regulator, VARA, has stated that the exchange is operating in violation of its rules by offering or facilitating any services involving virtual assets within Dubai.

According to Dubai Law No. (4) of 2022 and UAE Cabinet Resolution No. 111/2022, any company offering virtual asset services must be properly licensed to operate legally in the UAE.

Dubai’s financial regulator, the Virtual Assets Regulatory Authority, has stated that KuCoin isn’t legally permitted to provide virtual asset services to people living in Dubai.

The regulator cautioned that interacting with companies that don’t follow VARA rules, related guidelines, and UAE laws could put users at risk of serious financial loss and potential legal issues, including fines or criminal charges.

VARA has confirmed that KuCoin has not received approval to promote or market its services in Dubai. This means KuCoin cannot advertise or offer any virtual asset products or services to people living in Dubai.

Regulatory Scrutiny Intensifies 

I’m seeing some concerning news about KuCoin. It looks like they’re facing increased regulatory pressure globally, and now Dubai is issuing a warning too. Just recently, regulators in Austria actually stopped KuCoin from taking on new customers or expanding their business there. It’s making me a bit uneasy as an investor, and I’m definitely keeping a close eye on how this all unfolds.

Sources say the decision stemmed from worries that the platform didn’t have enough people dedicated to following the rules and meeting legal requirements. This brings up concerns about whether it was fully prepared to operate and how well it was overseen in that area.

Regulators in Europe are increasing their scrutiny of crypto companies as the European Union implements MiCA, a new set of rules to create a consistent approach to regulating crypto across all its member countries.

Even though KuCoin recently faced some challenges with new business restrictions, the company has made positive steps forward with regulations in Europe. Earlier this year, Austria approved KuCoin to operate throughout the European Union under a new, standardized set of rules for digital assets.

Market analyst Shanaka Anslem shared his thoughts on X (previously Twitter) regarding the legal issues confronting the cryptocurrency exchange, explaining that:

If you keep your money on a cryptocurrency exchange that doesn’t have the proper licenses in your area, the recent legal action against them should be a wake-up call. Future enforcement actions could block you from withdrawing your funds, leaving you with no options. The days of exchanges operating without following the rules are ending. Over the next two years, only exchanges that have already obtained the necessary licenses are likely to remain operational.


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2026-03-07 15:11