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

The Virtual Assets Regulatory Authority (VARA) of Dubai has taken measures against Bored Gen DMCC (BG), a firm engaged in the promotion and distribution of the Islamic coin (ISLM).

As per an alert issued by VARA on Wednesday, BG does not possess the required permissions to undertake the crypto-related ventures it’s been associated with. Consequently, the company has been instructed to halt its marketing operations until it secures the necessary approvals.

This regulatory action comes shortly after the crypto initiative was recognized as the “Blockchain Innovation of the Year” at Dubai’s annual Tech Innovation Awards.

Nevertheless, the regulatory body firmly asserts that BG is neither a registered nor licensed virtual asset issuer in Dubai, rendering its operations contrary to local regulations.

ISLM token sale

VARA has expressed apprehensions regarding the public sale of ISLM facilitated by a “Regulation D Offering organized by Opendeal Portal LLC.” The authority insinuated that this might breach local securities rules.

The regulatory body accentuated that BG hasn’t secured the necessary clearance from VARA for their activities.

Islamic coin portrays itself as a digital currency adhering to Shariah guidelines, advocating moral principles.

The ISLM token was made available to the public in September, subsequent to garnering $193 million in private sales, with notable investors such as ABO Capital, DF 101, A195, and Optic Capital backing it.

Crypto promotion without approval

Despite the accolades and progress of the crypto initiative, VARA’s notice emphasizes that ISLM’s promoters might have embarked on marketing endeavors without the necessary permissions.

Currently, VARA is probing the potential contravention of Administrative Order No. 01/2022. This order pertains to the regulatory guidelines overseeing the marketing, advertising, and promotional campaigns associated with virtual assets.

VARA has appealed to investors and individuals approached by BG, especially Dubai inhabitants who acquired the ISLM token, to report their encounters to the regulator through email communication.

The statement further clarified, “VARA remains vigilant and might proceed with additional enforcement measures against BG and any accountable parties if deemed necessary.”

Instituted in 2022, VARA stands as the chief authority responsible for supervising virtual asset service providers operating within Dubai in the UAE.

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