The Virtual Assets Regulatory Authority (Vara) on Monday fined Morpheus Software Technology FZE (Morpheus Fuze) for violating anti-money laundering (AML) regulations and failing to meet governance standards.

Morpheus was issued a Virtual Asset Service Provider Licence on October 19, 2023. Vara commenced a regulatory investigation on April 15, 2025, and, following its conclusion, identified failures in the company's AML programme, related governance, compliance, and internal systems and controls.

Morpheus also intentionally conducted unlicensed VA activity, violating its licence, and failed to disclose key facts to Vara.

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In light of the aforementioned failures, Vara has taken enforcement actions, including the imposition of a financial penalty against Morpheus.

Vara noted that Morpheus (Fuze) has accepted the findings identified and proposed a plan to remedy the aforementioned breaches. In addition, a skilled person will be appointed to oversee the execution of the remediation plan.

Morpheus (Fuze) will be subject to ongoing supervision by Vara, including the fulfilment of remedial actions imposed on Morpheus, to secure the marketplace and protect consumers.

The regulator, however, didn't disclose the amount of fine imposed on the company.

Vara is the competent entity in charge of regulating, supervising, and overseeing virtual asset services in Dubai (excluding the Dubai International Financial Centre).

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