Dubai’s Virtual Assets Regulatory Authority (VARA) Cracks Down on Unauthorized Marketing of Islamic Coin
The Virtual Assets Regulatory Authority (VARA) in Dubai has issued a warning regarding the unauthorized issuance, marketing, and retail distribution of islamic coin (ISLM) by Bored Gen DMCC (BG). In an alert released on October 4, VARA stated that BG is not a licensed or registered virtual assets issuer and is therefore in violation of regional regulations. VARA also highlighted that the public sale of the token through a Regulation D Offering arranged by Opendeal Portal LLC may potentially breach Regulation III.A.1. The regulator emphasized that BG must cease all marketing activity until it obtains the necessary approvals from VARA.
Regulator Investigates Potential Breach and Requests Investor Notification
VARA’s action comes just weeks after the crypto project announced the commencement of ISLM’s sale and distribution. Additionally, it occurred shortly after the project was recognized as the blockchain innovation of the year. While congratulating the ISLM team and community for their achievements, VARA raised concerns that the token’s promoters may have marketed it without approval. The regulator is currently investigating whether there has been a breach of Administrative Order No. 01/2022 Relating to Regulation of Marketing, Advertising, and Promotions Related to Virtual Asset. Investors targeted by BG are urged to notify VARA via email.
Hot Take: VARA Takes Swift Action Against Unauthorized Crypto Marketing
Dubai’s Virtual Assets Regulatory Authority (VARA) has taken decisive action against Bored Gen DMCC for its unauthorized issuance and marketing of islamic coin (ISLM). Despite being named the blockchain innovation of the year, BG lacked the necessary approvals from VARA, making its activities in violation of regional regulations. This crackdown highlights VARA’s commitment to enforcing the proper licensing and registration of virtual assets issuers. It also serves as a reminder to investors to exercise caution and verify the legitimacy of crypto projects before engaging with them. The swift response from VARA demonstrates its dedication to protecting market participants in the rapidly evolving world of digital assets.
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