Dubai regulator demands KuCoin to cease operations
According to a statement from the Dubai Virtual Assets Regulatory Authority (VARA), the cryptocurrency exchange KuCoin is violating local legislation by operating without the required license. The regulator has demanded that the platform immediately cease its operations in the emirate.
This warning came just a couple of weeks after Austria's financial regulator prohibited the European arm of KuCoin from conducting new business. Thus, the problems with the legality of the exchange's operations continue to accumulate.
Dubai is actively developing its own virtual assets and cryptocurrency industry, for which a special regulator, VARA, was created in 2022. However, the emirate's authorities are also striving to ensure strict compliance with local legislation by market participants. The claims against KuCoin are likely related to the platform's non-compliance with the regulator's requirements.
It is worth noting that KuCoin is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of about $1 billion. The platform attracts the attention of traders and investors around the world, including Russia. Therefore, regulatory issues may affect the availability of KuCoin for Russian users.
Expert opinion
The situation with KuCoin shows that even large players in the cryptocurrency market do not always pay enough attention to compliance with local laws and regulatory requirements. This can lead to serious problems, up to a complete ban on the platform's activities in certain jurisdictions.
For Russian traders and investors, it is important to closely monitor the developments around KuCoin, as restrictions in Dubai or Austria may affect the availability of the exchange. Additionally, this case demonstrates the need for a thorough selection of cryptocurrency platforms, especially for working with large amounts of funds.