September 27, 2023

Dubai’s VARA Warns about JPEX as Unregulated VASP

Dubai's VARA

Dubai’s VARA

Dubai’s Virtual Assets Regulatory Authority (VARA) has warned about the Virtual Asset Service Provider (VASP) JPEX and other associated entities in its holding group.

VARA is considering and initiating regulatory actions against them due to their unregulated operations and false claims about their regulatory status. Investors and market participants should take note of this development.

VARA’s primary concern is that JPEX operates without proper regulatory oversight. JPEX is not registered or regulated by VARA, so any Virtual Asset (VA) activity conducted or offered by JPEX, whether within Dubai or elsewhere, is unauthorized and unapproved by VARA.

JPEX and some affiliated individuals have made misleading statements about their regulatory status. VARA clarifies that JPEX is not regulated by VARA or subject to its oversight. Dubai Law No. 4 of 2022 mandates that all VA activities within or originating from Dubai are fully regulated and under VARA’s supervision. Therefore, if JPEX engages in any such activities, it violates Dubai Law.

VARA has reported that JPEX has not been granted permission to promote, advertise, solicit, or market its products and services. Therefore, JPEX is not authorized to encourage client participation in or from Dubai. Cabinet Resolution No. 111/2022 was cited by VARA, which advises potential investors and market participants to be cautious when dealing with unregulated VASPs. This resolution is a clear warning to exercise due diligence when dealing with virtual asset service providers.

VARA is encouraging customers targeted by JPEX’s promotional activities or receiving services from JPEX in Dubai to notify them.

This proactive approach will allow VARA to gather information and assess the potential extent of any wrongdoing. VARA reiterates its commitment to closely monitor the situation and take appropriate enforcement actions against JPEX and any individuals responsible for misconduct.

VARA is the competent regulatory authority overseeing virtual asset services in Dubai, excluding the Dubai International Financial Centre.

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