The Dubai Virtual Asset Regulatory Authority (VARA) is continuing to warn investors and consumers about virtual asset entities that are marketing their products and services within the UAE without regulatory backing.
The recent warning issued by VARA is against MKAN Coin, a crypto trading exchange that has an office in DMCC in Dubai and has been marketing its coin within the UAE without having the necessary regulatory approval.
VARA announced that it has not only asked the MKAN Coin entity to cease all unlicensed activities but it has also fined them.
Once again VARA reiterated that given that MKAN Coin is unregulated, any activities on its platform are not in compliance with VARA regulations, and thus pose risks to individuals engaging with the platform, including financial and legal risks.
In short, MKAN Coin does not meet any legal requirements and is not authorized to provide any virtual asset services in the Emirate of Dubai. VARA clearly adds, “Any promotion, advertising, or solicitation related to MKAN Coin has not been approved by VARA, and the platform is therefore prohibited from offering, promoting, or marketing any Virtual Asset products or services in Dubai or to its residents.”
VARA asked investors and consumers not to use MKAN Coin and noted that its website has been suspended voluntarily.
MKAN is created by the former CEO of Garantex, a cryptocurrency exchange sanctioned by the U.S. government. In 2022, Garatnex’s CEO, Mohammad Khalifa, who is not subject to sanctions, stepped down and founded a new exchange named MKAN Coin. The exchange, which is headquartered in Dubai’s Multi Commodities Centre (DMCC), allowed users to purchase and sell Bitcoin, Ethereum, and stablecoins using dollars, euros, and dirhams.
VARA warned against memecoins
Earlier this month VARA also warned investors against the risks associated with advertisements promoting subscriptions to memecoins. The alert emphasized that many meme coins lack intrinsic value and derive their pricing from social media trends, hype, or misleading promotional strategies.
Additionally, in December 2024, it also issued alerts for seven crypto entities claiming to be registered and licensed in Dubai. The entities include, Koto Crypto, Finchain, Crypto Force, Coin Cashy, BTC Bay, XT.com, and Stabit.
As per the notice, “Any activities related to virtual assets conducted on this platform are therefore not in compliance with VARA Regulations. Engaging with unlicensed platforms that are not in compliance with VARA Regulations exposes users to significant financial risks and potential legal consequences for violating regulatory requirements, or criminal laws.”
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