The Virtual Assets Regulatory Authority (VARA) is investigating a potential breach of regulations by a Dubai firm marketing the Islamic Coin (ISLM) token.
The firm in question is Bored Gen DMCC (BG), an entity based in the Dubai Multi Commodities Centre, a UAE free zone.
The company, however, is not a VARA licensed or registered virtual asset issuer, nor a virtual asset service provider that has otherwise been granted a non-objection confirmation to issue a virtual asset such as the ISLM token, which is being offered for public sale to Dubai residents (without limitations).
VARA on the 4th October issued an alert against the unauthorized issuance, marketing and retail distribution of the token by BG. The regulator confirmed that it is investigating whether BG has breached Administrative Order No 01/2022 relating to regulation of marketing, advertising and promotions related to virtual asset.
“BG are to cease marketing activity until it obtains the appropriate approvals from VARA and introduces appropriate disclaimers in connection with such marketing,” VARA said.
According to the regulator, BG has been selling ISLM through a regulation D offering, arranged by OpenDeal Portal, which is conducting business as Republic on republic.com, which may be a potential breach of Regulation III.A.1.
“Additionally, under the definition of Broker-Dealer Services, such activity is fully regulated under the VARA regime and requires a VA Broker Dealer License that neither BG nor Republic have obtained from VARA,” VARA explained.
Islamic Coin in September formed a partnership with Republic Crypto to go to market, as reported previously.
IFN Fintech has reached out to Islamic Coin for comments.