Triple A, TON DLT Foundation, and LBank Among Firms Penalized by VARA

For years, many firms in the digital asset industry have marketed themselves as headquartered in Dubai or actively operating from the emirate — even when they lacked the licenses required by the Virtual Assets Regulatory Authority (VARA).

Some carried licenses from other jurisdictions and entered Dubai only to promote their services — an act still considered unlawful under VARA’s framework. Others were established directly in Dubai’s free zones but never sought authorization from VARA.

This gap between public claims and regulatory reality is now being addressed head-on. In the last six months, VARA has issued enforcement actions against 19 firms, signaling its determination to close loopholes and enforce compliance.

19 Firms Penalized in Six Months

Between late 2024 and mid-2025, VARA sanctioned 19 companies for operating or promoting virtual asset services without authorization. Penalties included cease-and-desist orders, fines ranging from AED 100,000 to AED 600,000, and, in one case, the appointment of a skilled person to review compliance systems.

The enforcement wave has swept up both global firms with UAE partnerships and new ventures set up within Dubai’s free zones.

Triple A – Payments Firm With UAE Ties

Triple A Technologies Pte Ltd, a Singapore-based payments company known for its partnership with UAE telecom operator DU, was fined for unlicensed virtual asset activities in Dubai.

The action shows that even firms with strong regional partnerships must adhere to VARA’s licensing requirements.

TON DLT Foundation – ADGM Registration, Dubai Violation

The TON DLT Foundation, which advances The Open Network (TON) ecosystem, is formally registered in Abu Dhabi’s ADGM under the DLT Foundations framework.

Yet VARA sanctioned the foundation for advertising and marketing activities in Dubai without authorization. The case highlights a critical jurisdictional reality: ADGM registration does not grant automatic approval to operate or promote services in Dubai, where VARA holds exclusive oversight.

LBank – Exchange Activity in Question

LBK Blockchain FZCO (LBank), tied to the global crypto exchange, faced penalties for unlicensed operations and promotional outreach. LBank has actively targeted MENA users, but VARA’s action reinforces the message that global recognition does not override local regulatory obligations.

Beyond the Big Names – DeFi and Local Platforms

The enforcement sweep also included emerging DeFi and wallet projects, many of which were founded in Dubai’s free zones:

• Hokk Finance (HOKK): DeFi platform offering low-cost transfers and the Telegraph cross-chain oracle.
• Hatom Labs FZCO: Developer of the Hatom Protocol on MultiversX, enabling decentralized lending and borrowing.
• Tirupati Capitals FZCO (Paycio): Dubai Silicon Oasis–based provider of a mobile crypto e-wallet and transfer app.
• AirDance Global FZCO: Local exchange offering crypto-to-cash and cash-to-crypto services for retail users.

Their inclusion shows that local incorporation is no substitute for a VARA license.

The Regulator’s Message

By acting against both internationally recognized companies and locally created startups, VARA has delivered a clear signal: compliance in Dubai is not optional.

Licenses obtained abroad, or even within other UAE free zones, do not cover operations or marketing in Dubai. All activities aimed at the Dubai market fall under VARA’s jurisdiction.

With 19 firms penalized in just six months, VARA has made 2025 its most assertive year yet in enforcement. The message to the market is clear: firms cannot claim Dubai as a hub without securing Dubai’s authorization.

For the ecosystem, this strengthens trust in licensed operators and ensures a more credible environment for investors and users alike.