VARA enforcement action against KuCoin for unlicensed virtual asset broker-dealer and exchange operations constitutes enforcement against a crypto-asset service provider operating without proper authorization.
The enforcement relates to virtual asset exchange and broker-dealer services, which fall within crypto-asset payment service provision and regulatory oversight.
Specialism
While the update describes enforcement action against an unlicensed entity (KuCoin/Peken Global Limited), the taxonomy defines enforcement tags as applying to 'named payment firms' and 'confirmed breaches' of payment-specific regulations; this action targets a virtual asset exchange operator outside traditional payment services scope, requiring human review.
The breaches cited include AML/CTF law (Federal Decree Law No. 10 of 2025), but the primary violation is unlicensed virtual asset operations rather than specific AML/CTF controls like CDD or transaction monitoring, warranting lower confidence and human review.
2026-06-25 08:50:29·rghosh@vixio.com
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TITLE: Dubai Virtual Assets Regulatory Authority Issues Enforcement Notice Against KuCoin for Unlicensed Operations
BODY:
On June 24, 2026, the Virtual Assets Regulatory Authority (VARA) issued a Notice of Fines against Peken Global Limited, operating commercially as KuCoin, for providing virtual asset (VA) broker-dealer and exchange services to customers in Dubai without obtaining the necessary licence from VARA.
Following investigations, VARA determined that KuCoin breached Federal Decree Law No. (10) of 2025 Regarding Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing, Dubai Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai, Cabinet Resolution No. 111/2022 Regulating Virtual Assets and the Related Service Providers, and VARA's Regulations and Rulebooks. The enforcement action relates to an Investor and Marketplace Alert VARA issued on March 5, 2026, concerning KuCoin's unauthorised activities.
In response to these breaches, VARA imposed enforcement measures and financial penalties against Peken Global Limited and directed it to immediately cease and desist from all unlicensed virtual asset activities in or from Dubai. VARA noted that the entity fully cooperated throughout the investigation and complied with enforcement actions. KuCoin has expressed its intention to enter VARA's licensing process to obtain authorisation and serve customers in the United Arab Emirates, subject to necessary approvals.
VARA clarified that the enforcement action targets exclusively Peken Global Limited. Other legal entities associated with KuCoin identified in the March 5, 2026 alert were not subject to this enforcement action. The notice emphasises that it is published for market awareness and consumer information purposes only and does not constitute professional or legal advice.
VARA Notice of Fines – Peken Global Limited (“Kucoin”) - VARA Enforcement Notices VARA Notice of Fines – Peken Global Limited (“Kucoin”) 24 Jun 2026 The Virtual Assets Regulatory Authority (“VARA”) is issuing this Notice of Fines in relation to VARA’s earlier Investor and Marketplace Alert of 5 March 2026, concerning Peken Global Limited, commercially operating as KuCoin (the “Entity”) Following investigations led by VARA, the Entity was found to have been providing Virtual Asset (“VA”) Broker-Dealer and /or Exchange Services to customers in Dubai without obtaining the necessary licence from VARA. VARA considers these activities to be in breach of Federal Decree Law No. (10) of 2025 Regarding Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing, Dubai Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai, Cabinet Resolution No. 111/2022 Regulating Virtual Assets and the Related Service Providers, and the VARA Regulations and Rulebooks. As a result of the aforementioned breaches, VARA has imposed enforcement measures and financial penalties against the Entity and has directed it to immediately cease and desist from all unlicensed Virtual Asset activities in or from Dubai. The Entity fully cooperated with VARA throughout the process and fully complied with VARA’s enforcement actions. The Entity has also expressed its intention to enter VARA's licensing process, with a view to obtaining a licence and, subject to the necessary approvals, serving customers in the UAE. For clarification, the relevant legal entity subject to this enforcement action is exclusively Peken Global Limited. The remaining legal entities associated with the Entity, identified in the Investor and Marketplace Alert issued on 5 March 2026, were not targeted by this enforcement action. The above has been published on a non-reliance basis for market awareness and consumer information purposes only, in accordance with VARA’s function as the competent authority to regulate, license, supervise, and oversee Virtual Asset services in the Emirate of Dubai. This includes, but is not limited to, exercising its powers to monitor and enforce against any breach of VARA’s regulations or other wrongdoing. This notification is not a substitute for investors’ own due diligence and does not constitute any form of professional or legal advice. VARA is the competent authority for regulating, supervising, and overseeing Virtual Asset services in the Emirate of Dubai, excluding the Dubai International Financial Centre (DIFC). Download Notices VARA Notice of Fines – Peken Global Limited (“Kucoin”) Enforcement Notice Of Fines Peken Global Limited See all Regulatory Notices See all Regulatory Notices