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Dubai’s Virtual Assets Regulatory Authority (VARA) has allegedly sent out a warning against Koto Crypto. The regulatory has alleged a lack of necessary regulatory approval as the base of the charges.
The warning comes at a time when VARA has been alert and vigilant about crypto operations in the region amid growing demand for digital assets.
VARA Issues Warning Against Koto Crypto
In connection with Koto Crypto DMCC (commercially conducting transactions as “Koto Crypto”), a firm that uses the domain name and asserts that it is registered in the Emirate of Dubai, the Virtual Assets Regulatory Authority (VARA) of Dubai issued a notice.
Allegedly, the platform has been operating virtual asset operations that are accessible within the United Arab Emirates without obtaining the required regulatory clearance.
Koto Crypto does not have the proper license to offer services related to virtual assets in or out of Dubai. The VARA Regulations are thus not followed by any virtual asset-related activity carried out on this platform.
VARA Rolls Out Strict Regulations For Crypto Firms
Dubai’s VARA has time and again kept security as its priority. Therefore, responding to the higher demand of crypto in the region, the regulator had previously rolled out new laws for firms to follow.
To improve the regulatory environment for VASPs in Dubai, the VARA had released revised marketing regulations. The purpose of these new regulations, which took effect on October 1st, 2024, was to improve the integrity and transparency of marketing initiatives in the virtual assets industry.
Ensuring the accuracy of marketing messages and protecting consumer interests were the main goals of the Marketing Regulations for Virtual Assets and Related Activities 2024.
These laws were applied to all organizations that offer virtual assets, regardless of their level of VARA licensing. The top priorities of these regulations were to prevent misinformation and ensure that customers are informed.
Dubai Emerges As One Of The Biggest Crypto Hub
According to most reports, the UAE is one of the most progressive crypto nations in the world. Together with other Middle Eastern countries, the entire area has been moving up the ladder to rank among the top regions for cryptocurrency usage.
The Middle East and North Africa region has seen a sharp increase in the cryptocurrency industry’s operational capacity and user base. According to predictions, the MENA region will have the seventh-largest cryptocurrency industry in the world by 2024.
Institutional and professional-level activity is the primary driver of cryptocurrency activity in the MENA region; transactions totaling $10,000 or more account for 93% of all value transferred.
As the international Bitcoin markets recover, governments are attempting to create regulatory frameworks that strike a mix between innovation and essential safeguards to guarantee that this lead is preserved.