Dubai Virtual Assets Regulatory Authority (“VARA”) issued a notice on its website fining Morpheus Software Technology FZE, known as Fuze, a licensed VASP digital asset infrastructure provider, after it identified failures in AML ( Anti Money Laundering) program, Fuze confirmed that it is working closely with VARA to resolve the issues and that its business customers were not effected in anyway. Moreover Fuze continues to hold its full license and regulated entity within the UAE, Morpheus Software Technology FZE.

The issue started when VARA identified failures in Morpheus (Fuze)’s Anti-Money Laundering (“AML”) program, related governance, compliance, and internal systems and controls. Furthermore, Morpheus (Fuze) was found to have intentionally conducted unlicensed VA activity, breaching their license conditions and further failed to disclose those material facts to VARA.

VARA took enforcement actions including a financial penalty against Morpheus ( Fuze), which neither VARA nor Fuze have disclosed. Concurrently, Fuze will be under ongoing supervision by VARA to ensure fulfilment of remedial actions to secure the marketplace and protect consumers.

In a statement by Fuze the company noted,” We have acknowledged the notice issued by the Virtual Assets Regulatory Authority (VARA) in relation to certain business activities conducted by our UAE entity, Morpheus Software Technology FZE. The matter relates to issues, which Fuze is addressing through a comprehensive remediation plan.”

As per the statement, the matter concerns a defined set of historical transactions, and as soon as VARA brought this to their attention, immediate steps were taken to investigate internally and halt the activity and to address the concerns raised.

The statement added that there has been no effect to their business operations including its core digital assets as a service platform which serves numerous banks and fintech in the MENA region.

Fuze told Lara on the Block, ” Our customers and partners can rest assured that all licensed and regulated operations including our DaaS ( Digital Asset as a Service) platform remain fully operational and unaffected.”

They added, ” In fact, we have reinforced our leadership team, strengthened governance, and enhanced compliance controls to ensure we meet and exceed the highest regulatory standards.”

Fuze is cooperating fully with VARA, having acknowledged its findings and implementing a remediation plan under the supervision of an independent expert appointed by VARA to ensure its effective execution.

The company has also strengthened its leadership team, with the appointment of a Chief Compliance Officer, Head of Risk, and Head of Legal, and the addition of experienced board members. Governance and oversight have been further enhanced through the engagement of external compliance consultants and the reinforcement of internal systems.

Fuze one of the biggest homegrown digital asset service providers

Fuze, a digital assets infrastructure provider has witnessed significant growth over the past few years in the MENA region. The company offers a wide range of digital asset solutions for payments, stablecoins, OTC, and more.

In May 2025, Galaxy, a leader in digital assets and data center infrastructure, and e& capital, the venture capital and investment arm of global technology group e& led a $12.2 million Series A funding round in Fuze. Fuze had been championed from the beginning by Further Ventures, an ADQ-backed venture builder and investment firm out of UAE. In 2023 the company raised a seed round of $14million, the largest Seed investment in a digital assets startup in the history of the Middle East and North Africa region (MENA).

Fuze has an extensive network of partners, and customers in MENA.