The Dubai Virtual Assets Regulatory Authority (VARA) has taken enforcement action against Morpheus Software Technology FZE (Fuze) following the findings of a recent regulatory investigation.

Fuze was granted a Virtual Asset Service Provider License on 19 October 2023, allowing it to operate in the virtual asset market under the conditions set out in the license.

The investigation, which commenced on 15 April 2025, identified deficiencies in Fuze’s Anti-Money Laundering programme, governance, compliance, and internal systems and controls.

Additionally, the company was found to have deliberately conducted unlicensed virtual asset activity in breach of its license and failed to disclose material information to VARA.

In response to these findings, VARA has imposed a financial penalty on Fuze.

The company has accepted the findings and submitted a plan to remedy the breaches.

VARA will appoint a Skilled Person to oversee the implementation of the remediation plan and will continue to supervise Fuze to ensure compliance, marketplace security, and consumer protection.

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