The Dubai Virtual Assets Regulatory Authority (VARA) has recently taken action against Bored Gen DMCC (BG), a company involved in the distribution and marketing of Islamic coin (ISLM).
According to a VARA alert published on Wednesday, BG lacks the necessary authority to conduct the type of crypto-related business it has been involved in, and as a result, the firm has now been ordered to cease marketing activities until proper approvals are obtained.
The Consequences for BG
VARA’s action comes just days after the crypto project received the title of “Blockchain Innovation of the Year” at Dubai’s annual Tech Innovation Awards. Despite this recognition, the regulator is adamant that BG is not a licensed or registered virtual assets issuer in Dubai, making its activities in violation of regional regulations.
VARA has also expressed concerns about the public sale of ISLM through a “Regulation D Offering arranged by Opendeal Portal LLC.” There is a possibility that this may potentially be in violation of local securities regulations. The regulator emphasized that BG has not obtained the necessary approval from VARA.
About Islamic Coin (ISLM)
Islamic coin is a digital currency that claims to follow Shariah principles and promote ethical values. The ISLM token sale was launched for the public in September, following the successful private sales that raised $193 million from prominent investors.
Despite the recognition and achievements of the crypto project, VARA’s alert points out that the promoters of ISLM may have conducted marketing activities without proper approval.
VARA’s Investigation and Actions
VARA is currently investigating whether there has been a breach of Administrative Order No. 01/2022, which relates to the regulation of marketing, advertising, and promotions related to virtual assets.
The alert also urges investors and individuals who have purchased the ISLM token, particularly Dubai residents, to notify VARA via email if they have been targeted by BG.
“VARA continues to monitor the situation and may take further enforcement actions against BG and any responsible individuals as may be warranted,” the alert said.
Established in 2022, VARA is the regulator in charge of overseeing all virtual asset service providers in Dubai, UAE.
