Key Highlights
- VARA identified four entities, Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU Gmb, as operating under the KuCoin brand without a Dubai license.
- The regulator stated KuCoin had been misrepresenting its licensing status to users while serving Dubai residents without required regulatory approval.
- KuCoin holds no active license under VARA, Abu Dhabi’s FSRA, or the DIFC’s DFSA, the three independent regulatory frameworks governing virtual asset activity across the UAE.
- The action follows KuCoin’s $297 million DOJ settlement in January 2025 and Austria’s FMA restricting KuCoin EU from new business onboarding in February 2026.
Dubai’s Virtual Assets Regulatory Authority has ordered four entities operating under the KuCoin brand to immediately cease all virtual asset activity in the emirate, stating the exchange does not hold the license required to provide such crypto services in or from Dubai.
In a public market alert dated March 5, 2026, VARA named Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH as operating in breach of Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111/2022, which require all virtual asset service providers to hold a license before operating in the jurisdiction. The regulator added that KuCoin had been misrepresenting its licensing status to users.
The Cease-and-Desist
VARA stated that none of the four named entities hold any license to provide virtual asset services in or from Dubai and that any activities conducted or advertised by them are in breach of VARA regulations. The authority also confirmed that no promotional, advertising, or solicitation activity connected to KuCoin has received regulatory approval, barring the exchange from marketing any crypto products or services to Dubai residents.
VARA advised consumers and investors in Dubai to avoid engaging with KuCoin for virtual asset services and to verify any platform’s licence status on its public register before transacting. The regulator warned that engaging with unlicensed entities exposes users to significant financial risks and potential legal consequences under applicable UAE legislation.
UAE Regulatory Scope
VARA’s jurisdiction covers Dubai’s mainland and explicitly excludes the Dubai International Financial Centre, which is independently regulated by the DFSA. Abu Dhabi operates under a separate framework governed by the FSRA of Abu Dhabi Global Market.
KuCoin holds no active license under either of those bodies, meaning the exchange has no regulatory authorization under any of the three independent frameworks governing virtual asset activity across the UAE.
Regulatory Background
The VARA action follows a series of enforcement measures against KuCoin across multiple jurisdictions. In January 2025, KuCoin pleaded guilty to US criminal charges related to operating an unlicensed money-transmitting business and agreed to pay approximately $297 million in fines and forfeitures, with a mandatory two-year ban from serving US residents.
In February 2026, Austria’s Financial Market Authority restricted KuCoin EU which holds a MiCA permit—from onboarding new clients or conducting new business, citing failures to maintain adequate AML, counter-terrorist financing, and sanctions compliance personnel. KuCoin EU’s management said it had voluntarily paused new onboarding while working to restore full compliance.
VARA previously fined 19 unlicensed firms in October 2025, with most resuming operations after demonstrating compliance.
User Risk
VARA explicitly warned that engaging with unlicensed platforms exposes users to significant financial risks and potential legal consequences under UAE law, including under Cabinet Resolution No. 111 of 2022, which mandates licensing for all virtual asset businesses operating in or from the UAE.
Concerns around user fund access on KuCoin have surfaced independently of the regulatory action. A Canadian trader’s $2.8M CAD has remained frozen on the platform for eight months despite full KYC documentation being submitted.
KuCoin’s official statement:
KuCoin operates through different entities serving users in different jurisdictions, and regulators may reference different entities in public notices, but each entity operates within its respective scope.
KuCoin Exchange EU GmbH, for example, operates as a MiCAR-regulated entity focused on the EU market. It serves EU users and does not accept users residing outside the EU or conduct active marketing outside the EU.
Regulatory frameworks for digital assets are developing rapidly across many jurisdictions, and regulators are increasingly clarifying their expectations for the industry. KuCoin respects applicable laws and regulatory processes globally and maintains a cooperative approach with regulators while supporting the development of a responsible digital asset ecosystem.
Also Read: Canadian Trader’s $2.8M CAD Trapped on KuCoin for 8 Months.
