Abu Dhabi fines crypto company $13m for ‘serious’ violations

Hayvn fined for misconduct

CEO banned from financial businesses

Total penalties $12.45m

Regulators at Abu Dhabi Global Market (ADGM) have fined crypto payment processor Hayvn, its former chief executive, and related entities nearly $13 million for violations and misconduct.

The Financial Services Regulatory Authority (FSRA) investigation found “serious” breaches and misconduct by three related Hayvn companies and former CEO Christopher Flinos. A total fine of $8.9 million was issued, the ADGM statement said.

Flinos was banned indefinitely from conducting any financial services business in the Abu Dhabi financial freezone. He was fined $750,000 as he was found to have played a central role in directing and controlling the unlicensed activity in ADGM and was centrally involved in the breaches and misconduct.

In a separate ruling, AC Holding, registered in the Cayman Islands as Hayvn Cayman, and AC Limited, an ADGM-based subsidiary of Hayvn Cayman, were fined a total of $3.6 million.

This brought the total penalties imposed to $12.45 million.

Flinos was also banned from being the director of any ADGM-based company for 15 years.

The announcement comes as the UAE aims to establish itself as a global hub for the crypto and blockchain industry.

Often viewed as a crypto-friendly destination, authorities have been tightening up on oversight of the sector, event at the early registration stage.

The head of the Virtual Assets Regulatory Authority (Vara), which oversees Dubai’s industry told AGBI in October its processes are rigorous and only a small fraction of applicants are approved.

“We’ve seen a big evolution and the influx is now from sophisticated players that take regulation seriously,” Matthew White said.

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