Dubai Regulator Blocks the Sale and Distribution of Islamic Coin

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Dubai’s Virtual Assets Regulatory Authority (VARA) recently said the company distributing and marketing islamic coin (ISLM) lacks the authority to do so. VARA said Bored Gen DMCC must cease marketing activity until it obtains the appropriate approvals. The steps taken by the regulator came just a few days after the crypto project was named the blockchain innovation of the year.

Unauthorized Issuance and Distribution of Islamic Coin

The Dubai digital assets regulator, the Virtual Assets Regulatory Authority (VARA), has alerted investors and market participants to what it describes as “an unauthorized issuance, marketing and retail distribution” of islamic coin (ISLM) by Bored Gen DMCC (BG). In an alert issued on Oct. 4, the regulator insisted that BG is not a licensed or registered virtual assets (VA) issuer hence its activities are in violation of the region’s regulations.

VARA also said the public sale of the token through a “Regulation D Offering arranged by Opendeal Portal LLC” may be a potential violation of Regulation III.A.1. According to the regulator, BG has not been granted the required approval by VARA.

Islamic Coin Marketed Without Approval

The action taken by VARA coms just under a month after the team behind the crypto project announced the commencement of the sale and distribution of ISLM. The steps taken by the regulator also came just a few days after the crypto project was named the blockchain innovation of the year.

#IslamicCoin has been awarded for Blockchain Innovation of the Year in @entmagazineme’s annual Tech Innovation Awards 2023 in Dubai.

Congratulations to the #ISLM team and our community #EntMEAwards pic.twitter.com/cb9Jsmaqgm

— Islamic Coin (@Islamic_Coin) October 3, 2023

However, despite this and other milestones that the crypto project has achieved, the regulator insisted in its alert that the promoters of the token may have marketed this without approval. The regulator added:

“VARA are 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. BG are to cease marketing activity until it obtains the appropriate approvals from VARA and introduces appropriate disclaimers in connection with such marketing.”

VARA added that investors and those who have been targeted by BG should notify the regulator via email.

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