Key Highlights
- VARA warned that MEXC does not have a license to offer Virtual Asset services in Dubai, making its activities illegal.
- Engaging with unlicensed platforms like MEXC or KuCoin can cause financial losses and legal risks.
- Authorities advise investors to check the Public Register before using any Virtual Asset service provider.
Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a warning to investors and consumers against crypto exchange, MEXC. The authorities cited MEXC Estonia OÜ and MEXC Global LTD, which operate under the brand name “MEXC.”
According to VARA, the exchange does not have a license to offer Virtual Asset services in or from the country. This means any activity or advertisement by MEXC in Dubai breaks the law. VARA advises individuals and businesses to check the regulatory status of any Virtual Asset service provider on its Public Register before engaging with them.
VARA further explained to the public that the company fails to meet the requirements of Dubai Law No. 4 of 2022 and Cabinet Resolution No. 111/2022, which govern all licensed Virtual Asset service providers in Dubai.
“Any promotion, advertising, or solicitation related to MEXC has not been approved by VARA, and the company is therefore not allowed to offer, promote, or market any Virtual Asset products or services in Dubai or to its residents,” the authority said in its alert.
The regulator also highlighted that engaging with unlicensed companies could expose users to significant financial risks and possible legal consequences. VARA emphasized that individuals and businesses must be cautious and verify that platforms comply with local laws before trading or investing.
KuCoin exchange faces similar warning
Meanwhile, the authorities issued the same warnings for KuCoin and its associated companies, including Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH, earlier today.
According to the report, authorities stated that the exchange might be offering Virtual Asset services in Dubai without a proper license, which is against the law. VARA noted that “any promotion, advertising, or solicitation related to KuCoin has not been approved by VARA,” and users could face serious financial and legal risks if they deal with the platform.
This warning comes after regulatory problems in other countries. Austria’s Financial Market Authority (FMA) froze new business at KuCoin EU because it did not meet anti-money laundering and sanctions rules. In Canada, one trader has been unable to access $2.8 million CAD on KuCoin for over eight months. These events show that VARA is carefully checking global crypto companies to protect Dubai residents.
People in Dubai are told to avoid unlicensed platforms like MEXC and always verify a company’s license on VARA’s Public Register before investing in Virtual Assets.
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