Dubai’s Virtual Assets Regulatory Authority and the Dubai Land Department have issued a public warning about entities falsely claiming involvement in their real estate tokenization project pilot.
The Virtual Assets Regulatory Authority (VARA) has released a public advisory warning consumers and market players about entities falsely claiming involvement in a real estate tokenization initiative. In a statement issued in collaboration with the Dubai Land Department (DLD), VARA clarified that only those entities explicitly approved by the two authorities are permitted to engage in the current pilot phase.
The advisory emphasized that confirmations of participation are sent directly to the relevant entities through VARA or DLD’s official communication channels. It further cautioned that companies promoting real estate tokenization services tied to Dubai properties could be breaching regulations.
“Entities offering real estate tokenization services associated with Dubai-based assets, particularly when advertising through promotional materials or digital platforms aimed at Dubai residents, might be engaging in unlicensed Virtual Asset (VA) activities unless they have obtained the proper licenses or authorizations from the respective authorities. Such actions could violate VARA’s regulations, including, but not limited to, Marketing Regulations, and could result in enforcement measures,” the joint advisory noted.
The Real Estate Tokenisation Project, launched on March 19, 2025, seeks to digitize property ownership records by utilizing blockchain technology. Advocates of the project claim it will revolutionize property ownership by allowing fractional ownership, enabling smaller investors to acquire stakes in real estate.
Additionally, the project offers international investors an opportunity to access Dubai’s real estate market without facing traditional entry barriers. However, the possibility of increased foreign investment has seemingly attracted unlicensed operators and scammers, leading VARA and DLD to issue warnings to safeguard UAE residents.
At the same time, VARA and DLD reminded the public about the considerable financial risks involved when dealing with platforms falsely presenting themselves as participants in the official pilot. According to the advisory, unauthorized services do not offer the consumer protection standards or comprehensive risk management systems that are mandatory in the regulated pilot program.
Entities found to be participating in or promoting unauthorized activities could face penalties such as public warnings, monetary fines, and complete bans, the statement concluded.
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