Dubai Regulator Halts Sale and Distribution of Islamic Coin – What’s Going On?

Dubai’s Virtual Assets Regulatory Authority (VARA) issued a stern warning recently. Red flags were raised about unauthorized issuance, marketing, and retail distribution of Islamic Coin (ISLM) by Bored Gen DMCC (BG). VARA claims BG lacks the necessary licensing as a virtual asset (VA) issuer, violating regional regulations and guidelines.

What caught VARA’s attention was the public sale of the token, conducted through a “Regulation D Offering arranged by Opendeal Portal LLC.” VARA has expressed concerns that this sale may breach Regulation III.A.1. of the regulatory framework. The primary issue is that BG needed to obtain approvals from VARA for such activities.

Despite garnering significant recognition, including being named the “Blockchain Innovation of the Year,”

VARA’s recent alert indicates that token promoters may have marketed without proper authorization from the regulatory authority.

VARA investigates these breaches and instructs BG to cease marketing until obtaining VARA approvals. Additionally, VARA has mandated BG to incorporate appropriate disclaimers within its marketing materials to align with regulatory standards.

Furthermore, VARA advised investors and BG’s targets to report concerns via email to the regulatory authority.

This regulatory development is a pertinent example of the increasing scrutiny and compliance-related challenges faced by cryptocurrency projects operating in the dynamic and evolving blockchain landscape.

It underscores the importance of adherence to established regulatory guidelines and the need for compliance within the cryptocurrency and blockchain industry to maintain trust and integrity.