Dubai’s Virtual Asset Regulatory Authority (VARA) has issued a market alert against Kucoin Exchange, and Phoenixfin PTe Ltd MEK Global Limited, as well as Peken Global Limited, commercially advertising as Kucoin, given that Kucoin has been offering Dubai residents virtual asset services without being regulated in the country.
VARA noted that Kucoin has been providing these services without the necessary regulatory approvals and misrepresenting its licensing status. As a result, the company has been instructed to cease and desist from all unlicensed virtual asset and crypto activities.
Dubai piles on EU prohibition for Kucoin
VARA has also noted that Kucoin does not hold any license to provide virtual asset services in/from Dubai. According to VARA, unlicensed companies pose a risk to consumers because they are not compliant with VARA regulations and rule books, and this exposes consumers to significant financial risk, as well as legal consequences.
In accordance with Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must be licensed to operate legally in this jurisdiction.
Although Kucoin in early 2026 received an EU Markets in Crypto Assets Regulation (MiCAR) license in Austria to operate as a crypto exchange, or what is known as a crypto asset service provider across the EU, in February 2026, the Austrian Financial Market Authority (FMA) prohibited KuCoin EU from onboarding new business due to breaches in anti-money laundering (AML) obligations.
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Due to a lack of proper compliance staff, the Austrian regulator suspended new business activities for KuCoin EU in February 2026.
