{"id":69737,"date":"2023-10-07T00:19:38","date_gmt":"2023-10-07T04:19:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/dubai-regulator-halts-sale-and-distribution-of-islamic-coin-whats-going-on\/"},"modified":"2023-10-07T00:19:41","modified_gmt":"2023-10-07T04:19:41","slug":"dubai-regulator-halts-sale-and-distribution-of-islamic-coin-whats-going-on","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=69737","title":{"rendered":"Dubai Regulator Halts Sale and Distribution of Islamic Coin \u2013 What’s Going On?"},"content":{"rendered":"
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The Dubai Virtual Assets Regulatory Authority (VARA) has taken action against Bored Gen DMCC (BG), a company involved in the distribution and marketing of Islamic coin (ISLM).<\/p>\n

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 the firm has now been ordered to cease marketing activities until proper approvals are obtained.<\/p>\n

VARA’s action follows just days after the crypto project was honored<\/a> with the title of “Blockchain Innovation of the Year” at Dubai\u2019s annual Tech Innovation Awards.<\/p>\n

However, 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.<\/p>\n

ISLM token sale<\/h2>\n

VARA has also raised concerns about the public sale of ISLM through a “Regulation D Offering arranged by Opendeal Portal LLC,” suggesting that it may potentially be in violation of local securities regulations.<\/p>\n

The regulator emphasized that BG has not obtained the required approval from VARA.<\/p>\n

Islamic coin is digital currency that claims to follow Shariah principles and promote ethical values.<\/p>\n

The ISLM token sale launched for the public in September after raising $193 million in private sales from prominent investors like ABO Capital, DF 101, A195, and Optic Capital.<\/p>\n

Crypto promotion without approval<\/h2>\n

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.<\/p>\n

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.<\/p>\n

Investors and individuals targeted by BG, including Dubai residents who have purchased the ISLM token, have been urged by VARA to notify the regulator via email.<\/p>\n

\u201cVARA continues to monitor the situation and may take further enforcement actions against BG and any responsible individuals as may be warranted,\u201d the alert said.<\/p>\n

Established in 2022, VARA is the regulator in charge of overseeing all virtual asset service providers in Dubai in the UAE.<\/p>\n

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