Dubai’s regulator warns MEXC, KuCoin to cease ‘unlicensed’ crypto activity

Dubai’s Digital Property Regulatory Authority (VARA) has ordered crypto exchanges MEXC, KuCoin, and their associates to instantly stop all “unlicensed” exercise within the area. 

In a public statement, the regulator stated that MEXC associates don’t maintain a VARA license. It additionally warned traders that participating with the trade exposes them to monetary danger and authorized penalties. 

Supply: X/VARA 

Curiously, the Friday warning in opposition to MEXC adopted an identical transfer in opposition to KuCoin. On Thursday, the company issued a stern warning to KuCoin and its customers within the area. 

“VARA advises shoppers and traders in Dubai to keep away from participating with Kucoin or the aim of Digital Asset companies, and to train warning when contemplating interactions with unregulated entities.”

Dubai intensifies crackdown on crypto exercise

Dubai has positioned itself as a crypto-friendly jurisdiction, however solely to companies that adhere to its compliance framework. In October 2025, the regulator fined 19 companies for working unlicensed crypto actions, slapping every with penalties starting from $27k to $ 163k. 

Though most companies are likely to resume operations after receiving regulatory approval, the most recent crackdown coincided with Iran’s escalations and a pointy improve in crypto exercise throughout the broader area.

The UAE is the second-largest crypto market within the Center East and North Africa (MENA) area, after Turkey. It noticed $53 billion in crypto flows as of June 2025. 

Supply: Chainalysis 

Nevertheless, latest tensions have led to a notable 700% surge in crypto exercise throughout Iran, each from Iranian residents and the federal government. Crypto has develop into one of many options for the Iranian authorities to bypass U.S sanctions. 

Now, the U.S has shifted its focus to crypto exchanges, together with Binance, for probably aiding Iran in bypassing these sanctions.

Though Binance has denied facilitating illicit Iranian capital flows, the stress might be one of many causes Dubai is scaling its crackdown on unlicensed exchanges. 

Individually, the UAE can also be reportedly exploring freezing Iranian property to dam Tehran’s entry to international foreign money and international commerce. In January, the blockchain safety analysis agency TRM Labs discovered that the Iranian regime accounted for half of the crypto exercise within the nation. 

Put otherwise, crypto has develop into a key lifeline for the Iranian regime and will entice extra scrutiny from regional and Western regulators amid the continued tensions.  

Ultimate Abstract

• Dubai’s watchdog issued a “stop and desist” warning to MEXC and KuCoin for working and not using a license within the area. 
• Intense crackdown follows rising regional and Western stress to dam capital inflows to the Iranian regime.