Escalating concerns over the uncontrolled rise of virtual asset service providers trigger regulatory bodies worldwide, and the Dubai Virtual Assets Regulatory Authority (VARA) has recently forayed into action. On the receiving end is Bored Gen DMCC (BG), under scrutiny for its dealings related to Islamic Coin (ISLM). A VARA alert insinuates that BG lacks the required permissions for carrying out crypto-related operations, ordering an immediate halt to its marketing endeavors pending appropriate authorizations.
This intervention has a distinct tinge of irony; it came shortly after the crypto venture secured a prestigious recognition – “Blockchain Innovation of the Year” at Dubai’s annual Tech Innovation Awards. While the accolades are plentiful, VARA maintains a stiff stance, clarifying that BG is not a sanctioned virtual asset issuer in Dubai and thereby stands in violation of regional regulations.
Further discomposure arises from the concern over ISLM’s public sale executed via a “Regulation D Offering arranged by Opendeal Portal LLC”. This move is under the microscope for an alleged infraction of local securities regulations. Amplifying this, VARA underlines that BG failed to secure the needed consent from the regulatory authority.
The ISLM token, a digital asset that asserts adherence to Shariah principles promoting ethical values, was made public in September following a successful private fundraising of $193 million by notable investors like ABO Capital, DF 101, A195, and Optic Capital.
Parallel to the budding prestige of the project, VARA’s notice reveals a potential lapse. The ISLM promoters might have embarked on marketing campaigns without obtaining requisite approval. VARA has sprung an investigation into the alleged transgression of Administrative Order No. 01/2022 pertinent to the control of marketing and promotions related to virtual assets.
The directive encourages liaising with VARA for those targeted by BG, particularly Dubai residents who acquired the ISLM token. It is a clarion call that enforcement actions might multiply against BG and other implicated individuals if needed.
VARA, established in 2022, incubates the responsibility of supervising all virtual asset service providers in Dubai and UAE. The sentinel questions BG’s activities, clamps down on its operations while it continues to garner significant investments and accolades, thereby nudging us to ask: Where does the line between ambitious innovation and regulation compliance blur?
Source: Cryptonews
