Dubai Cracks Down: TON DLT Foundation Among 19 Firms Fined for Unlicensed Crypto Activities

Dubai has sent a clear message to the global crypto industry — unlicensed operations will not be tolerated.

The Dubai Virtual Assets Regulatory Authority (VARA) has fined 19 Virtual Asset Service Providers (VASPs), including the TON DLT Foundation, for unauthorized crypto activities and violations of marketing regulations. According to the official announcement, the fines range from AED 100,000 to AED 600,000 ($27,000 to $163,000) depending on the severity of the violations.

Dubai Regulators Are Losing Patience VARA stated that its enforcement division is actively monitoring and investigating firms operating without the necessary authorization.

The regulator emphasized that the penalties serve as a strong warning to investors and companies collaborating with unlicensed operators. “Enforcement is a key part of maintaining trust and stability in Dubai’s virtual asset ecosystem,” VARA wrote.

“Our goal is to ensure that only firms meeting the highest standards of compliance, governance, and transparency are permitted to operate.” The authority also reiterated that unlicensed business activity or unauthorized crypto marketing will be treated as serious offenses carrying financial, legal, and reputational risks.

Immediate Shutdown Orders and Strict Measures All penalized companies have been instructed to immediately cease operations and terminate all marketing or promotional activities related to virtual assets, both within Dubai and directed toward Dubai-based investors. Among those fined, alongside the TON DLT Foundation, are UAEC Digital Fintech FZCO, MORPHEUS SOFTWARE TECHNOLOGY FZE (FUZE), GLEEC DMCC, UEEX Technology, Triple A Technologies, Hatom Labs, Hokk Finance, and others. The crackdown comes as Dubai continues to tighten its regulatory framework for cryptocurrencies, with the goal of becoming a global hub for transparent and compliant digital finance.

Dubai Draws the Line – and Sets the Rules Back in 2023, VARA officially ended the grace period for crypto firms to obtain regulatory licenses.

At the time, 18 commercially licensed service providers under the Dubai Department of Economy and Tourism (DET) were fined for non-compliance with VARA’s guidelines. The message from Dubai is crystal clear: the era of unregulated crypto operations is over.

The city, which aims to become a world capital of digital assets, now demands maximum transparency, investor protection, and strict adherence to regulation.

A Global Signal to the Crypto Industry This crackdown on unlicensed VASPs is not just a local development — it’s a global warning shot.

Dubai, one of the most open yet ambitious jurisdictions for blockchain innovation, is making it clear that legal compliance and investor safety take precedence over fast profits. For firms like TON DLT Foundation and others hit with penalties, the move serves as a wake-up call — a prompt to reassess their regulatory strategy and align with Dubai’s evolving standards. With this decisive action, Dubai reaffirms its role as a pioneer in global crypto regulation — a city determined to lead the blockchain revolution, but only on lawful and transparent terms.

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