Dubai Regulator Halts Sale of Islamic Coin: What’s Behind the Move?

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The Dubai Virtual Assets Regulatory Authority (VARA) has taken action against Bored Gen DMCC (BG) for its involvement in the marketing and distribution of Islamic Coin (ISLM). According to the VARA Alert published on Wednesday, BG does not have the necessary authorization to engage in the crypto-related activities it has been engaging in and has been ordered to stop marketing until it obtains the necessary approvals.

The alert comes just days after the crypto-project was honored with the title of “Blockchain Innovation of the Year” at Dubai’s annual Tech Innovation Awards. VARA ruled out BG as a virtual assets issuer, as its activities are in violation of local regulations.

VARA has also expressed its concerns over the sale of ISLM tokens to the public through a “Regulation D Offering arranged by Opendeal Portal LLC”, which may have violated local securities laws. The Regulator noted that BG did not obtain approval from VARA prior to engaging in such activities.

Islamic Coin is a digital currency that promotes ethical values and principles in line with Sharia. The tokens are now available for public purchase through ABO CapitalDF101, A195 and Optic Capital.

VARA’s alert highlighted that, despite the recognition of the crypto project, the promoters may have carried out marketing activities without proper authorization. VARA is currently investigating whether there has been a breach of Administrative Order No. 01/2022 regarding the regulation of advertising, marketing and promotions related to virtual assets.

Investors who have purchased ISLM tokens are urged to email VARA. The regulator has warned that it may take further enforcement action against BG and any individuals responsible, as appropriate.

VARA will be the regulatory body for all virtual asset services providers in the UAE by 2022.

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