the Virtual assets and regulatory authority (Vara) from Dubai issued a warning about High risks associated with micoesEmphasize the need to comply with local regulations.
Investors are advised to exercise caution, given high volatility and the risk of fraud. In this article, we will see all the details.
The regulatory authority of the cryptocurrency in Dubai: Memecoins must comply with local regulations
The organization of cryptocurrencies is enhanced globally, and Dubai is not an exception.
Virtual assets and the organizational body (VARA), the body responsible for overseeing digital assets in the emirate, Recently Warning about memecoins.
These digital assets, which are often characterized by a high degree of speculation and volatility, You must comply with local regulations If it is released in Dubai.
On February 13, Vara confirmed that Memecoins are highly dangerous financial tools, not being organized and may be subject to the market.
The organizational body highlighted how these assets derive their value primarily from the noise resulting from social media and marketing strategies, and often proud offers are often misleading.
Vara announced, in his statement, the following:
“Many of these assets lack the fundamental value and their prices derive from social media trends, noise, or misleading promotional strategies.”
Investors have been urged to pay Special attention For projects that are unrealistic returns, because this data can be an indication of fraudulent plans.
The Authority also warned against the rapid collapse of the value of this Criptovalute, which can cause significant financial losses in a very short time.
Memecoins will have to comply with regulations
In addition to warning the investors, Vara explained that any micoin was issued within the emirate You must comply with the current regulations.
Among the most stringent rules are those who govern the promotion, advertising and contact of investments in digital assets. These restrictions were presented to protect consumers from potential deceptive commercial practices.
In 2023, Vara implemented “full market products regulations”, which creates strict guidance for all participants in the cryptocurrency market in Dubai, with the exception of those working at the Dubai International Financial Center (DIFC).
According to these regulations, companies that violate the marketing rules may face Fines up to $ 135,000.
In September 2023, VARA tightened its regulations and imposed more strict requirements for companies that promote the country’s digital assets.
Among this commitment to include detailed information in promotional materials and obtaining the confirmation of organizational compliance before launching advertising campaigns.
In addition to the sanctions of the incompatible companies, VARA stated that she could Limited without notice Access to the platforms operating in the Memecoin sector without permission.
Investors were warned of the possibility of imposing such restrictions without notice, with the aim of protecting the financial system and stabilizing the encryption market in Dubai.
The Authority has repeated the importance of adopting preventive measures to protect personal financial security, and avoid investing in very speculative assets without a clear understanding of the risks they involve.
International scene: FCA case in the United Kingdom
Dubai is not the only country that adopted a cautious approach to the Mechanists.
The FCA (FCA) recently issued a warning against the Solana -based Memecoin project delay.
Specifically indicates that the participating investors will not enjoy the protection provided by the service of the Financial Grievance Secretary and the plan to compensate for financial services in the United Kingdom.
This growing organizational attention at the global level shows the readiness of the authorities Preventing violations and protecting investors Of the fraudulent or very speculative processes.
