LBank suspends UAE new users and disables trading for existing ones

LBank suspends UAE new users and disables trading for existing ones

LBank, a crypto exchange offering more than 800 crypto assets is seeking a license in UAE through Dubai’s Virtual Asset Regulatory Authority (VARA) and as a result they are implementing changes to ensure regulatory compliance and high standards of consumer protection and transparency which include suspending new user registrations from the UAE.

As per their blog post, “As part of our ongoing commitment to full regulatory compliance and responsible innovation, LBank is currently in the process of securing a Virtual Asset Service Provider (VASP) license under the Dubai Virtual Assets Regulatory Authority (VARA).
In alignment with regulatory expectations and to ensure the highest standards of consumer protection and operational transparency, the following temporary changes will apply to users accessing our services from the UAE.”

New user registrations from the UAE will be temporarily suspended, while existing UAE users will only be able to, cancel open orders
close active positions, withdraw funds. The blog post notes, deposits and new trading orders will be disabled during this interim period.

LBank stated, “We understand the importance of uninterrupted access and are working closely with regulators to complete the licensing process as efficiently and transparently as possible. This transition underscores our deep commitment to the UAE’s progressive regulatory framework and our goal to operate with full authorization and oversight under VARA. We appreciate your continued trust and patience as we work to build a safer, stronger, and fully compliant digital asset ecosystem in the UAE.”

Dubai’s VARA updates supervisory mechanisms for VASPs in UAE

Dubai’s VARA updates supervisory mechanisms for VASPs in UAE

The Virtual Assets Regulatory Authority [VARA] has published Version 2.0 of its activity-based Rulebooks, in an efforts to further future proof Dubai’s regulatory framework that balances innovation with robust market safeguards.

As per the press release, the updated Rulebooks include enhanced supervisory mechanisms across the following regulated virtual asset [VA] activities, Advisory services, Broker-dealer services, Custody services, Exchange services, Lending and borrowing services, VA management and investment services and VA transfer and settlement services.


Key refinements in Version 2 include strengthened controls around margin trading and token distribution services, clearer definitions for collateral wallet arrangements, and harmonized compliance requirements across all licensed activities.

Ruben Bombardi, General Counsel and Head of Regulatory Enablement VARA, “Our commitment remains to ensuring that innovation and compliance go hand in hand. These rulebook updates reinforce the foundations of a responsible scalable ecosystem.

The updates are designed to promote greater market discipline, risk transparency, and operational resilience across Dubai’s VA ecosystem.

For example, with regards to VA Management and Investment VASPs, in addition to the requirements of before, they will need to establish, implement and enforce appropriate written internal policies and procedures relating to the ability of clients to have access to and withdraw their Virtual Assets including, but not limited to, during periods of high uncertainty and/or extreme volatility; their assessment of client suitability for relevant products or services, including but not limited to the nature, features, costs and risks of investment services, Virtual Assets or other financial instruments selected for their clients, while taking into account cost and complexity; how they ensure all Staff providing VA Management and Investment Services to clients are sufficiently competent in accordance with Rule II.B.1 of this VA Management and Investment Services Rulebook; and such other policies and procedures as VARA may require from time to time.


In line with global regulatory best practices, a 30-day transition period has been granted to all impacted virtual asset service providers [VASPs], with full compliance required by 19 June 2025. VARA’s Supervision Teams will engage directly with each licensed entity to provide activity-specific guidance as needed.


Prior to this, VARA in coordination with the Dubai Land Department (DLD), had issued an alert regarding entities who have falsely claimed involvement or participation in the pilot phase of the DLD Real estate tokenization project. The tokenization project in question is that launched by DLD in March whose partners include the Dubai VARA regulatory authority and the Dubai Future Foundation through its Sandbox Real Estate. The project will tokenize property deeds to enable the fractional ownership of real estate assets, and was introduced under the Real Estate Innovation Initiative.

With already more than 30 licensed VASP operators, VARA has continuously been advancing its regulations, and rulebooks as well as issuing warnings and alerts to ensure better transparency and compliance.

Ceffu crypto custodian receives in principle approval from VARA Dubai

Ceffu crypto custodian receives in principle approval from VARA Dubai

Ceffu, a compliant, institutional-grade custody platform offering custody and liquidity solutions that are ISO 27001 & 27701 certified and SOC2 Type 1 & Type 2 attested, allowing institutional clients to safely store and manage their digital assets, and Binance crypto exchange only institutional crypto custody provider, has received In-Principle Approval (IPA) from the Dubai Virtual Assets Regulatory Authority (VARA) for their Virtual Asset Service Provider (VASP) license application.

As per the announcement, the approval enables Ceffu to offer institutional-grade custody services to Qualified Investors in and from Dubai, marking a major step in expanding our presence in the region’s fast growing virtual asset market.

According to Ceffu, this will enable them to continue to deliver secure, trusted, innovative and fully compliant custody solutions tailored to institutional needs. In their 2024 report Ceffu had showcased their expansion plans in both Asia, Europe and MENA region.

Ceffu commented that they look forward to continued collaboration with VARA to ensure their solutions remain compliant and have a positive impact on the region’s thriving virtual asset ecosystem while showcasing that they will continue their expansion in MENA.

In addition to its already ongoing partnership with Binance, Ceffu recently announced the launch of MirrorRSV (pronounced Mirror Reserve), a new and enhanced addition to their suite of flagship off-exchange settlement solutions.

Ceffu’s Strong Partnership with Binance continues


In addition to its already ongoing partnership with Binance, Ceffu recently announced the launch of MirrorRSV (pronounced Mirror Reserve), a new and enhanced addition to their suite of flagship off-exchange settlement solutions.

Discussing their new solution, they mentioned that through their extended partnership with Binance, the world’s largest cryptocurrency exchange, MirrorRSV offers operational efficiency and provides a gateway to unrivaled liquidity to institutional clients, all while ensuring institutional-grade security for their digital assets.

Digital assets are secured in Ceffu’s cold storage and fully verifiable on-chain. Clients receive representative assets in their designated Binance Exchange (Exchange) parent account at a 1:1 ratio, which are eligible for use with Binance Portfolio Margin.

Growth of Crypto Custodial services in UAE

This comes as more and more crypto custody providers are offering their solutions to the institutional sector. UAE based Fuze, a digital assets infrastructure provider partnered with crypto custodian Hex Trust also regulated in the UAE, to deliver institutional-grade digital asset custody across the Middle East.

In April 2025, BitGo, a global crypto custodian and crypto staking provider received its license in the UAE through its Dubai subsidiary, BitGo Custody MENA FZE. BitGo obtained the license from Dubai’s Virtual Assets Regulatory Authority. The Virtual Assets Service Provider (VASP) operating license will allow BitGo to offer Virtual Asset Custody Services and Staking. This approval follows BitGo’s receipt of the in-principle approval (IPA) in January 2025.

Global Crypto Custodian Bitgo now licensed in UAE

Global Crypto Custodian Bitgo now licensed in UAE

BitGo, a global crypto custodian and crypto staking provider has received a license in the UAE through its Dubai subsidiary, BitGo Custody MENA FZE. BitGo obtained the license from Dubai’s Virtual Assets Regulatory Authority. The Virtual Assets Service Provider (VASP) operating license will allow BitGo to offer Virtual Asset Custody Services and Staking. This approval follows BitGo’s receipt of the in-principle approval (IPA) in January 2025.

BitGo Custody MENA FZE will now be offering secure and efficient cold storage custody services to Institutional and Qualified Investors in the UAE.

Ben Choy, General Manager of BitGo Custody MENA FZE, said, “At BitGo, we provide the most secure and scalable solutions for the digital asset economy. A large part of this effort is ensuring we adhere to the highest regulatory standards. Receiving authorization from VARA reinforces our role as a trusted partner for institutional investors and allows us to provide our award winning services from Dubai.”

Bitgo recently secured its position as the world’s largest staking platform by total locked value with $48 billion in assets staked.

Dubai VARA regulator warns against misrepresenting in governmental real estate tokenization project

Dubai VARA regulator warns against misrepresenting in governmental real estate tokenization project

The Dubai Virtual Assets Regulatory Authority (VARA), in coordination with the Dubai Land Department (DLD), has issued an alert regarding entities who have falsely claimed involvement or participation in the pilot phase of the DLD Real estate tokenization project.

The tokenization project in question is that launched by DLD in March whose partners include the Dubai VARA regulatory authority and the Dubai Future Foundation through its Sandbox Real Estate. The project will tokenize property deeds to enable the fractional ownership of real estate assets, and was introduced under the Real Estate Innovation Initiative.

The alert notes that some entities might have falsely claimed or purported their participation in the pilot phase of the DLD Real Estate Tokenization Project. As per the alert the project involves select participants approved by both DLD and VARA. The alert noted that no entities beyond those explicitly approved by DLD and VARA are authorized to participate in the pilot phase.

As per the alert, ” Any entity promoting their involvement in the Project without formal confirmation from either VARA or DLD is misrepresenting their status. Official communications confirming participation will be issued solely by DLD and/or VARA.”

The alert further states that entities marketing real estate tokenization services linked to assets in Dubai, have to be licensed or authorized by the relevant authorities. VARA notes that engaging with unlicensed platforms or those falsely claiming participation in the Project exposes consumers to significant financial risk. These services are not covered by the consumer protection, market integrity, or risk management measures built into the regulated pilot framework.

Entities engaging in or promoting unauthorized activities, or misrepresenting their regulatory status, are liable for enforcement action, including but not limited to public alerts, financial penalties, and market prohibitions.

Consumers and market participants are advised to exercise caution and verify the licensing status of all firms claiming to offer VA-related services by consulting the official VARA Public Register. Any promotional content referencing participation in the Project that has not been validated through VARA or DLD should be treated with caution.

UAE regulated OKX pilots crypto collateral mirroring with Standard Chartered

UAE regulated OKX pilots crypto collateral mirroring with Standard Chartered

Standard Chartered and UAE regulated OKX, a cryptocurrency exchange have launched collateral mirroring program, enabling institutional clients to utilize cryptocurrencies and tokenized money market funds as off-exchange collateral for trading under a pilot overseen by the Dubai Virtual Asset Regulatory Authority (VARA).

As per the press release, the initiative significantly enhances security and capital efficiency for institutional clients by using a Globally Systemically Important Bank (G-SIB) as the custodian for their collateral.

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered said: “We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape, and our collaboration with OKX to enable the use of cryptocurrencies and tokenised money market funds as collateral represents a significant step forward in providing institutional clients with the confidence and efficiency they need. By leveraging our established custody infrastructure, we are ensuring the highest standards of security and regulatory compliance, fostering greater trust in the digital asset ecosystem.”

The collateral mirroring capability has been launched as a Pilot within the Dubai Virtual Asset Regulatory Authority’s (VARA) regulatory framework, and it allows clients to benefit from enhanced protection against counterparty risk, a significant concern in the current digital asset markets.

Standard Chartered acts as the independent, regulated custodian in the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority, ensuring the safe storage of the assets used as collateral, while OKX through its VARA regulated entity, manages collateral and facilitates transactions. Franklin Templeton will be the first in a series of money market funds that will be offered under the OKX-SCB program.

Hong Fang, President of OKX, added, “As the digital assets ecosystem becomes more ingrained within traditional finance, we strive to both drive growth and safeguard client assets in the most capital efficient manner. By leveraging Standard Chartered’s position as a top custodian globally, as well as OKX’s market leadership in cryptocurrency trading, the partnership sets an industry standard for current and potential institutional clients to deploy trading capital at scale in a trusted environment.

Franklin Templeton, a recognised leader in tokenisation and real world assets (RWA), continues to innovate by leveraging blockchain technology to deliver cutting-edge solutions to customers and clients. Through this collaboration, OKX clients will gain access to on-chain assets developed by Franklin Templeton’s Digital Assets Team, seamlessly integrating them into their financial and operational structures.

Roger Bayston, Franklin Templeton Head of Digital Assets, says “Leveraging blockchain technology, our platform is built to support the dynamic and ever-evolving financial ecosystem. We take an authentic approach, from directly investing in blockchain assets to developing innovative solutions with our in-house team. By ensuring assets are minted on-chain, we enable true ownership, allowing them to move and settle at blockchain speed – eliminating the need for traditional infrastructure.”

Brevan Howard Digital, the dedicated crypto and digital asset division of Brevan Howard, a leading global alternative investment manager, is among the first few institutions to onboard onto this pioneering programme, highlighting the importance of such capabilities being offered by a leading international cross-border bank and a highly reputable global exchange.

Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital, commented: “This program is the latest example of the continued innovation and institutionalization of the industry. As a significant investor in the digital assets space, we are thrilled to partner with industry leaders to further grow and evolve the crypto ecosystem globally.”

BitPanda has secured a crypto broker license in UAE

BitPanda has secured a crypto broker license in UAE

Bitpanda, A European virtual asset platform, has secured a crypto broker-Dealer license from the Dubai Virtual Assets Regulatory Authority (VARA).

As per the press release, the license will allow Bitpanda to make its virtual assets platform available to investors in the UAE including access to over 500 virtual assets – the most extensive virtual assets offering available on the market.

Lukas Enzersdorfer-Konrad, Deputy CEO at Bitpanda Group, noted, “Bitpanda is built on the principle that virtual assets should be secure and accessible. With our VARA license, we are bringing that vision to the UAE, ensuring investors and financial institutions have access to a fully compliant digital asset platform. This is just the beginning of our expansion beyond Europe. We are ready to grow in a region that embraces innovation and regulation equally.”

Bitpanda has already established a permanent office in Dubai at the DMCC Crypto Centre and has a team of regional experts in place who will now work to develop products tailored to the UAE market. Onboarding for UAE investors will begin in the coming months.

Fabian Reinisch, General Counsel at Bitpanda Group, commented: “We obtained approval in record time and I believe that is a testament to the decade experience of our teams working in the digital asset space and our commitment to the highest regulatory standards.”

BitPanda had received preliminary approval back in December 2024, which means it took only four months to get its full license.

BitPanda holds several licenses including a MiCAR license from the German regulator BaFin, registration with the UK’s FCA, a PSD2 E-money license, a MiFID II license, and VASP registrations across multiple markets.

Dubai’s regulator VARA warns against MKAN Coin

Dubai’s regulator VARA warns against MKAN Coin

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued an alert regarding MKAN Coin, which operates as a crypto trading exchange, based out of DMCC. The coin which uses the domain www.mkancoin.com has been advertising virtual asset activities accessible within the UAE but with no regulatory approval.

VARA has instructed MKAN Coin to cease all marketing activities and has issued a fine.

According to the crypto regulator, engaging with unlicensed platforms exposes users to significant financial risk and potential legal consequences for violating regulatory requirements. The regulator notes that 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. MKAN Coin does not meet these legal requirements and is not authorized to provide any virtual asset services in/from the Emirate of Dubai.

Furthermore VARA advised consumers and investors in the UAE to avoid using MKAN Coin, and to exercise caution when considering interactions with unregulated platforms. Users should be aware that access to the MKAN Coin website has been suspended voluntarily, and it is recommended to take immediate necessary measures to ensure protection of user assets.

This is not the first time that Dubai’s regulator has warned against unregulated VASP activities. In April 2023, VARA issued an alert and warning with regards to virtual asset exchange OPNX (opnx.com) which launched on April 4th 2023.

Then in October 2023, it warned investors and market participants of the unauthorized issuance, marketing, and retail distribution of Islamic Coin (ISLM) from Bored Gen (BG) DMCC based out of Dubai UAE.

Most recently in December 2024, the regulator issued alerts for seven crypto entities claiming to be registered and licensed in Dubai. The entities include, Koto Crypto, Finchain, Crypto Force, Coin Cashy, BTC Bay, XT, and Stabit.

Dubai crypto regulator monitoring and tracking Bybit hack situation

Dubai crypto regulator monitoring and tracking Bybit hack situation

Dubai Virtual Assets Regulatory Authority has confirmed to Lara on the Block that they are actively monitoring the ByBit hack situation as the matter evolves and are closely tracking it until it stabilizes. The statement was made after Bybit, the second largest crypto exchange globally was hacked on February 21st 2025, losing $1.4 billion in Eth.

As per Bybit, whose headquarters are based in Dubai UAE, the exchange detected unauthorized activity within one of their Ethereum (ETH) Cold Wallets during a routine transfer process. The transfer was part of a scheduled move of ETH from their ETH Multisig Cold Wallet to their Hot Wallet. Unfortunately, the transaction was manipulated by a sophisticated attack that altered the smart contract logic and masked the signing interface, enabling the attacker to gain control of the ETH Cold Wallet. As a result, over 400,000 ETH and stETH worth more than $1.5 billion were transferred to an unidentified address.

It was later found that the Lazarus Group out of North Korea were responsible, and since then have been transferring ETH to new addresses through ChainFlip.

VARA spokesperson told Lara on the Block, ” Bybit has not been granted a regulatory licence under VARA, and is currently working towards fulfilling the stringent licensing requirements to secure a VASP operating permit in Dubai. As part of VARA’s rigorous due diligence, we have been actively monitoring the situation since the hack on ByBit was confirmed last night – this remains a highly evolving matter that we will continue to closely track until it stabilizes.”

Bybit headquartered in Dubai UAE

Bybit had set up its headquarters in Dubai UAE back in 2023, citing it as one of the most progressive crypto jurisdictions. The crypto exchange then received its in-principle license in September 2024 and is still in the process of receiving its full license. Bybit has been very active in the UAE partnering and working with entities to increase crypto awareness and investments in the ecosystem.

Bybit in turmoil after $1.4 billion hack

The Bybit hack is the biggest loss in the entire history of crypto exchanges. The exchange lost 400,000 ETH and stETH worth more than $1.5 billion. What is more interesting is since the hack the exchange has seen withdrawals of more than $5 billion. According to Bybit CEO Zhou speaking in an X space, ” Fortunately the company’s assets are far greater than $1.5 billion, there is a cold wallet in safe with nearly $3 billion in USDT, and fortunately this has not been stolen.” He adds though that, “if more than $10 billion was stolen, it might be necessary to consider selling the company.”

Cryptocurrency exchange Bybit has maintained reserves exceeding its liabilities despite suffering a $1.4 billion hack and an overall $5.3 billion decline in total assets, according to DefiLlama data. Bybit processed more than 350,000 withdrawal requests within 10 hours, completing 99.9% of them by 1:45 am UTC, Bybit co-founder and CEO Ben Zhou noted.

“Although we have been hit by the worst hack possibly in the history of any medians (banks, crypto, finance), But all Bybit functions and product remain functional, the Whole team had been awake all night to process and answer client questions and concerns,” Zhou wrote.

One of the exchange updates stated that they had reported the case to the appropriate authorities, and have worked quickly with on chain analytics such as Chainanalysis, and Hacken to identify and demix the implicated addresses.

Global crypto community shows solidarity with Bybit

In a show of solidarity, other crypto exchanges such as Bitget, Binance, OKX, and even some Chinese cryptocurrency leaders are actively transferring ETH to Bybit to support its liquidity. Even Huobi co-founder Du Jun deposited 10,000 ETH to Bybit as well as founders of Conflux and Mask Network.

In a recent Xpost Zhou also thanked MEXC, Solana, TON, Blockchain UAE, Ghaf Capital in UAE as well as Tether and Galaxy Digital among others.

Additionally according to Ethescan, the Mantle powered mETH Protocol has salvaged 15,000 cmETH from Bybit Exploiters worth about $2.76 million.

Updated at 8:00 pm Dubai UAE time

UAE investors and consumers warned about memecoins by Dubai regulator VARA

UAE investors and consumers warned about memecoins by Dubai regulator VARA

UAE investors and consumers were officially warned about investing in memecoins by Dubai’s Virtual Assets Regulatory Authority (VARA) given the risks associated with advertisements promoting subscriptions to memecoins.

The UAE virtual asset regulator noted that memecoins are unregulated and highly risky in nature. The crypto regulator noted memecoins are highly speculative and volatile assets, frequently subject to market manipulation.

The regulator also stated that these memecoins lack intrinsic value and derive their pricing from social media trends, hype or misleading promotional strategies.

As such investors should exercise caution when presented with claims of unrealistic returns, as these often indicate fraudulent schemes.
There is a risk of significant financial loss within short timeframes due to price collapses, liquidity shortages, or scams.

Moreover VARA added that any virtual asset issuance from Dubai must ensure adherence with VARA Regulations and Rulebooks.
Any promotion, advertising, or solicitation of virtual assets must adhere to VARA’s Marketing Regulations.
Entities engaging in unauthorized virtual asset activities may be subject to enforcement action.

These memecoin platform may also be restricted without prior notice.