Dubai’s regulatory body seeks to fortify marketing compliance in burgeoning digital asset ventures.
The Dubai Virtual Assets Regulatory Authority (VARA) has released a public advisory, cautioning against unauthorized groups falsely associating themselves with the Dubai Land Department’s (DLD) Real Estate Tokenization Project.
In an official update dated April 23, VARA underlined that the initiative, which was officially introduced on March 19, is limited exclusively to a chosen number of participants approved by both DLD and VARA.
The authority made it clear that any firm or online platform claiming to participate in the initiative without proper authorization is providing a misleading representation.
These inaccurate assertions, particularly when aimed at investors within Dubai, may be in direct breach of VARA’s regulatory guidelines related to marketing and advertising.
In this context, VARA explained that these entities might be conducting unlicensed virtual asset (VA) operations, which are strictly forbidden unless explicitly permitted by the relevant regulatory bodies.
Furthermore, VARA raised concerns about the risks to consumer safety, warning that unregulated platforms that appear to be part of the project are not covered by the legal protections and monitoring embedded in the pilot program’s framework.
To safeguard themselves, the regulatory body urged investors and industry participants to diligently confirm the licensing credentials of any business offering virtual asset-related services within Dubai. The public was also advised to treat unverified service offers or promotional materials with caution, and to promptly report any suspicious activities.
In a related statement, the Dubai Land Department (DLD) reaffirmed its support for the tokenization initiative, which is designed to transform property title deeds into tokenized assets (RWAs) through blockchain technology. The effort marks Dubai’s move to establish itself as a regional frontrunner in real estate digital transformation.
At the project’s launch, DLD estimated that the tokenized property market might reach a size of $16 billion by 2033, accounting for approximately 7% of Dubai’s entire real estate transactions.
