Dubai VARA Issues Warning Against Unlicensed Platform “Koto Crypto”
The Virtual Assets Regulatory Authority (VARA) of Dubai has issued a public warning regarding Koto Crypto DMCC, a platform operating under the name “Koto Crypto.” The company claims to be registered in Dubai and conducts virtual asset transactions through its website. However, VARA has clarified that Koto Crypto is operating without the necessary regulatory approvals.
Unlicensed Virtual Asset Activities in the UAE
Koto Crypto is not authorized to provide virtual asset services either within or from Dubai. This means that any virtual asset activities facilitated by the platform are not in compliance with VARA regulations. Engaging with unlicensed platforms like Koto Crypto exposes users to significant financial risks and potential legal consequences, including violations of regulatory or criminal laws.
Legal Framework for Virtual Asset Services
Under Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must obtain proper licensing to operate legally in the Emirate. Koto Crypto has failed to meet these legal requirements and is therefore prohibited from promoting, advertising, or offering its services in Dubai or to UAE residents.
Advisory for Investors and Users
VARA strongly advises consumers and investors in the UAE to avoid using Koto Crypto or any other unregulated virtual asset platforms. Any promotions or marketing activities by Koto Crypto have not been approved by VARA, and access to their website may be restricted without prior notice. To safeguard their assets, users are encouraged to take immediate measures to disengage from unregulated platforms.
About VARA
VARA is the designated authority overseeing the regulation, supervision, and monitoring of virtual asset activities in Dubai, with the exception of the Dubai International Financial Centre (DIFC). Its mission is to ensure a safe and transparent virtual asset ecosystem in the Emirate.
For anyone engaging in virtual asset activities, it is crucial to verify the regulatory status of the service provider to ensure compliance and avoid unnecessary risks.