UAE Regulators Warn Against Multiple Unlicenced Financial Firms Operating in Local Markets

{getToc} $title={Table of Contents}

Multiple unlicenced firms operating in UAE markets: Financial authority warning. Check provider status before investing.

The UAE's Capital Market Authority (CMA) has issued its latest warning against an unlicensed financial operator, naming Volcano Capital Marketing Management as a Dubai-based firm not authorised to conduct regulated financial activities. The January 13, 2026 alert follows a series of similar warnings issued by UAE regulators throughout late 2025, reflecting an intensified enforcement campaign against unauthorised market participants.

The CMA, which replaced the Securities and Commodities Authority (SCA) on January 1, 2026, stated it "bears no responsibility for any transactions or dealings" with the firm. Investors are advised to verify any provider's licence status through official registers before conducting business.

Four Firms Named in Recent Regulatory Alerts

Beyond Volcano Capital, three additional entities received formal warnings from UAE regulators in December 2025. Golden Brokers Limited, operating a representative office in Dubai, was flagged on December 10, 2025 for conducting activities without proper authorisation. The SCA explicitly stated it assumes no responsibility for any transactions with the firm.

Global Capital Securities Trading, affiliated with Global Capital Market Limited and operating through the website gcfx24.com, was warned on December 3-4, 2025 for falsely presenting itself as a licensed capital trading company. The same week, regulators exposed an entity calling itself "Gulf Higher Authority for Financial Conduct"—a particularly egregious case involving active misrepresentation as a legitimate financial regulator through the website financialgcc.com.

Systemic Challenge Across UAE Markets

These recent warnings represent only the latest in an extensive enforcement effort. The SCA/CMA maintains a public warning database containing dozens of unlicensed entities accumulated over years of regulatory action. Named firms include Platinum FX, SAL Investment LLC, GoDo FX Office Company, GTC Global Trade Capital, Green Candles Marketing Management, and numerous others operating across traditional and digital financial services.

Parallel enforcement continues across regulatory bodies. The Virtual Assets Regulatory Authority (VARA) imposed financial sanctions on 19 unlicensed virtual asset firms in October 2025, with penalties ranging from AED 100,000 to AED 600,000 per entity. The Dubai Financial Services Authority (DFSA) has established a dedicated team to monitor unauthorised business activity in and from the DIFC.

Substantially Increased Penalties Now in Force

Federal Law No. 6 of 2025 has elevated sanctions for unauthorised financial activities to imprisonment and/or fines ranging from AED 50,000 to AED 500 million (approximately $13,600 to $136 million). The Central Bank of the UAE can now impose penalties of up to AED 1 billion ($272.3 million) for unlicensed operations—a five-fold increase from the previous AED 200 million maximum.

The CMA's expanded powers under Federal Decree-Laws No. 32 and 33 of 2025 include authority to impose administrative fines of up to ten times the profit gained or loss avoided through regulatory violations, alongside enhanced international cooperation mechanisms aligned with IOSCO standards.

Common Tactics Used by Unlicensed Operators

Investigative reporting by Khaleej Times has documented sophisticated methods deployed by unlicensed firms. These include creating fraudulent websites mimicking legitimate regulators, using logos of the DFSA, DIFC, ADGM, and SCA to create false legitimacy, and registering domains closely resembling authorised firms. Social engineering tactics involve aggressive cold-calling, promises of "guaranteed returns," and leveraging social media influencers.

Operationally, these entities typically use "representative office" structures to maintain a physical Dubai presence while remaining offshore-controlled, obscuring true ownership through shell companies registered in jurisdictions with minimal oversight.

Essential Verification Steps for Investors

Regulatory authorities recommend several verification steps before engaging any financial services provider:

Check the CMA Public Register on the official website to confirm both authorisation status and specific licensed activities
Verify regulatory disclosure on the firm's website—licensed firms must clearly display their regulator and licence number
Cross-reference claims of DIFC/DFSA, ADGM/FSRA, or VARA authorisation through those regulators' independent registers
Confirm the firm holds authorisation for the specific activity you plan to undertake, as licensing is granular and activity-specific

Key red flags include absence of verifiable regulatory disclosure, promises of risk-free returns, pressure to deposit funds immediately, reluctance to produce official licence documentation, and requests for wire transfers to offshore accounts. Suspected unlicensed activity should be reported to the relevant regulator via official complaint portals.