The Dubai Virtual Assets Regulatory Authority (VARA) issued a notice of fines setting out enforcement action against Morpheus Software Technology FZE (Morpheus (Fuze)) following a regulatory investigation that identified deficiencies in its Anti-Money Laundering (AML) programme and related governance and controls, alongside breaches of licence conditions. VARA imposed a financial penalty and required remediation, with a Skilled Person to be appointed to oversee execution of the remediation plan. Morpheus (Fuze) was issued a Virtual Asset Service Provider Licence on 19 October 2023, permitting market operations subject to licence conditions. An investigation that commenced on 15 April 2025 found failures in AML arrangements, compliance, and internal systems and controls, and concluded that the firm intentionally conducted unlicensed virtual asset activity in breach of the licence conditions and failed to disclose material facts to VARA. The firm accepted the findings and proposed a plan to remedy the breaches. VARA indicated Morpheus (Fuze) will remain under ongoing supervision, including monitoring compliance with the remedial actions imposed.
Dubai Virtual Assets Regulatory Authority 2025-08-18
Dubai Virtual Assets Regulatory Authority fines Morpheus Software Technology FZE for AML and licensing breaches
The Dubai Virtual Assets Regulatory Authority (VARA) fined Morpheus Software Technology FZE for deficiencies in its Anti-Money Laundering programme, governance, and controls, and breaches of licence conditions. The firm conducted unlicensed virtual asset activity and failed to disclose material facts, accepted the findings, and proposed a remediation plan. VARA will continue supervising Morpheus (Fuze) to ensure compliance with remedial actions.