The Virtual Assets Regulatory Authority (VARA) of Dubai today issued an alert in relation to Koto Crypto DMCC (commercially conducting transactions as “Koto Crypto”), a company using the domain name and claiming to be registered in the Emirate of Dubai.
The platform is conducting virtual asset activities accessible within the UAE without the necessary regulatory approval.
Koto Crypto is not appropriately licensed to provide virtual asset services in/from Dubai. Any activities related to virtual assets conducted on this platform are therefore not in compliance with VARA Regulations.
Engaging with unlicensed platforms that are not in compliance with VARA Regulations exposes users to significant financial risks and potential legal consequences for violating regulatory requirements, or criminal laws.
In accordance with Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must be licensed to operate legally in this jurisdiction. Koto Crypto does not meet these legal requirements and is not authorised to provide any virtual asset services in/from the Emirate of Dubai.
Any promotion, advertising, or solicitation related to Koto Crypto has not been approved by VARA, and the platform is therefore prohibited from offering, promoting, or marketing any Virtual Asset products or services in Dubai or to its residents.
VARA advises consumers and investors in the UAE to avoid using Koto Crypto, and to exercise caution when considering interactions with unregulated platforms. Users should be aware that access to the Koto Crypto website may be restricted without prior notice, and it is recommended to take immediate necessary measures to ensure protection of user assets.
VARA is the designated authority responsible for regulating, supervising, and monitoring virtual asset activities in the Emirate of Dubai (excluding the Dubai International Financial Centre).
