Dubai Virtual Assets Regulatory Authority (VARA) has issued a warning addressed to Koto Crypto platform customers, market participants and investors.
VARA recommends to:
- refrain from using the Koto Crypto platform,
- take measures to protect the assets, since the access to Koto Crypto may be restricted without prior notice.
The Koto Crypto DMCC platform operated without a licence allowing to provide virtual asset services. Thus, the platform violated the requirements of Dubai Law No. 4 of 2022 Regulating Virtual Assets in the Emirate of Dubai and Cabinet Decision No. 111 of 2022 on the Regulation of Virtual Assets and their Service Providers.
Koto Crypto was prohibited from promoting, advertising or selling products or services related to virtual assets.
VARA also reminded users of the penalties for interacting with unlicensed platforms.
According to Cabinet Decision No. 99 of 2024 on the Violations and Administrative Penalties for Actions that Occur in Breach of the Provisions of Cabinet Decision No. 111 of 2022 on the Regulation of Virtual Assets and their Service Providers, a fine of AED 100,000 ...