On August 16, the Dubai Virtual Asset Regulatory Authority (VARA) in the United Arab Emirates (UAE) escalated its action against Open Technology Markets Ltd. (OPNX), a crypto exchange.

This follows previous notices issued in April 2023 regarding the exchange’s conduct. The regulator also imposed a fine on the exchange and its executives.

On May 2, OPNX was fined $2.7 million for violating Dubai’s Virtual Assets and Related Activities regulations revolving around marketing and promotion. The exchange has not yet paid the fine.

VARA intervenes in response to the alleged bankruptcy claims.

All penalties are reviewed by the regulator’s grievance committee, in accordance with the law. The Committee’s endorsement of the enforcement action against OPNX justifies the fines imposed.

Since OPNX has not yet been paid, VARA is actively considering additional steps to ensure compliance. These may include further fines and penalties, and even dealing with law enforcement or legal avenues, if necessary.

Several exchanges, including Kraken, Binance, and Bybit, have opened offices in Dubai in recent years. This trend is likely to continue as Dubai cements its position as a leading technology hub.

In May 2023, VARA warned Bybit, telling the cryptocurrency exchange that it must comply with UAE law if issued a license.

In March, the Dubai Financial Services Authority (DFSA) issued a statement calling for more cooperation between regulators in combating cryptocurrency scams.