An Examination of Dubai Authority Banning the Sale and Circulation of Islamic Coin
In a recent development concerning the digital currency market in Dubai, the Virtual Assets Regulatory Authority (VARA) projected a spotlight on the company propelling the popular Islamic coin (ISLM) through distribution and marketing, pointing out that they lack the necessary jurisdiction to do so. This organization, known as Bored Gen DMCC, was directed to halt its marketing operations, pending when they get the requisite authorization. It’s interesting to note that this regulatory escalation occurred only a few days after the cryptocurrency undertaking was heralded as the blockchain innovation of the year.
The Unsanctioned Distribution and Circulation of Islamic Coin
In clearer terms, the digital assets supervisory body in Dubai – VARA, cautioned investors and persons interested in the market about what it refers to as “an unauthorized issuance, marketing, and retail distribution” of Islamic coin (ISLM) by the Bored Gen DMCC (BG). On the 4th of October, the regulatory body emphasized that BG isn’t a registered or licensed virtual assets (VA) issuer, therefore its activities are contrary to the prevailing regional regulations.
Furthermore, VARA brought attention to the public sale of the token via a “Regulation D Offering arranged by Opendeal Portal LLC”, warning that it might be a possible violation of Regulation III.A.1. VARA reminds the public that BG hasn’t been given the necessary approval for such an operation.
Islamic Coin Promoted Illegally
VARA’s intervention happened shortly after the group driving the cryptocurrency venture declared the beginning of the sale and circulation of ISLM. This regulatory action also followed shortly after the cryptocurrency venture was titled the blockchain innovation of the year.
In spite of all these feats, the regulatory body emphasized in its directive that the token’s promoters may have promoted this innovation without getting the needed authorization. VARA pointedly stated:
“We are verifying whether there’s been a violation of Administrative Order No. 01/2022 Relating to Regulation of Marketing, Advertising, and Promotions Related to Virtual Asset. BG needs to stop its marketing activities until it acquires the necessary permits from VARA and puts in place proper disclaimers associated with its marketing.”
For VARA, investors, and those targeted by BG, should make it their duty to inform the regulatory agency about such activity.
Join the conversation. What do you make of this development? Share your thoughts below in the comment section.
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Frequently asked Questions
1. Why has the Dubai Authority decided to halt Islamic coin sales and distribution?
The Dubai Authority has decided to halt Islamic coin sales and distribution due to concerns over authenticity and transparency in the market.
2. Are there any specific issues that led to this decision?
Yes, recent investigations revealed several cases of counterfeit Islamic coins being sold in the market, which raised serious concerns about the credibility of the industry.
3. How will this decision affect consumers and collectors of Islamic coins?
Consumers and collectors of Islamic coins will need to be cautious and verify the authenticity of any coins they consider purchasing, as the Dubai Authority’s decision will temporarily disrupt the availability of new coins in the market.
4. Is there a timeline for when the sale and distribution of Islamic coins may resume?
The Dubai Authority has not provided a specific timeline for when the sale and distribution of Islamic coins will resume. However, they have emphasized that they are actively working on implementing stricter regulations and quality control measures to safeguard consumers in the future.
5. Will this decision have any impact on the reputation of Islamic coins in the global market?
While this temporary halt in sales and distribution may raise concerns, it also demonstrates the Dubai Authority’s commitment to ensuring the credibility and integrity of the Islamic coin market. Ultimately, this decision is aimed at protecting the reputation of Islamic coins and enhancing trust among buyers worldwide.
6. Can consumers still buy and sell existing Islamic coins in the market?
Yes, consumers can still buy and sell existing Islamic coins in the market. However, caution should be exercised, and buyers are advised to verify the authenticity and quality of the coins through reputable sources or experts in the field.
7. How will this decision impact the overall Islamic finance industry in Dubai?
Although this decision specifically pertains to Islamic coin sales and distribution, it reflects the Dubai Authority’s commitment to maintaining the integrity and credibility of the Islamic finance industry as a whole. By taking proactive measures to address issues, the authority aims to strengthen trust and confidence in the industry.