Dubai’s VARA Issues Enforcement Action and Fines Against Shelbit General Trading L.L.C
- By GCI
Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a formal Notice of Fines against Shelbit General Trading L.L.C, commercially known as Shelbit or Shelbit Exchange, following continued breaches of UAE virtual‑asset regulations.
The action follows an earlier cease‑and‑desist order issued on 2 January 2025, after VARA identified that Shelbit was operating as an unlicensed virtual‑asset service provider. Despite this enforcement action, VARA’s market‑wide monitoring found that Shelbit continued to:
Provide virtual‑asset services in and from Dubai without a licence
Onboard users without mandatory KYC checks required under UAE law
Market its services within Dubai without authorisation
VARA stated that the risks extended beyond consumer protection, noting egregious cross‑border activity with the potential to impact the integrity of the UAE financial system.
The regulator determined that Shelbit’s activities breached multiple laws and regulatory frameworks, including:
Federal Decree‑Law No. 10 of 2025 on AML/CFT and proliferation financing
Cabinet Resolution No. 111 of 2022 regulating virtual‑asset service providers
Dubai Law No. 4 of 2022 governing virtual‑asset activities
VARA’s own regulations and rulebooks
As a result, VARA has:
Imposed financial penalties
Exercised additional enforcement measures
Directed Shelbit to immediately cease all unlicensed virtual‑asset activities in or from Dubai
VARA published the notice to support market awareness and reinforce its role as the competent authority overseeing virtual‑asset services in Dubai (excluding DIFC). The regulator emphasised that the notice is not a substitute for investor due diligence and does not constitute legal advice.
Source: https://www.vara.ae/en/regulations/regulatory-notices/vara-notice-of-fines-shelbit-general-trading-llc/