The Dubai Virtual Assets Regulatory Authority (VARA) has issued a public warning regarding unauthorized entities falsely claiming to be part of the Dubai Land Department’s Real Estate Tokenization Project. The initiative, which was launched on March 19, is limited to a select group of approved participants as per the DLD and VARA.
VARA emphasized that any company or platform promoting involvement in the project without formal approval is misrepresenting its status. This could potentially violate VARA’s marketing and promotional regulations, especially when targeting Dubai-based investors. The regulator also highlighted that engaging in unlicensed virtual asset (VA) activities is strictly prohibited unless authorized by relevant authorities.
Entities falsely presenting themselves as part of the tokenization project pose a significant threat to consumer protection, as they are not subject to the oversight and safeguards established in the project’s pilot framework. VARA advised investors and market participants to verify the licensing status of any firm offering virtual asset-related services in Dubai and to approach unverified promotional material or service offerings with caution, reporting any suspicious activity.
Meanwhile, the Dubai Land Department reaffirmed its commitment to the tokenization project, which aims to digitize property title deeds and convert them into real-world asset (RWA) tokens using blockchain technology. This initiative positions Dubai as a regional leader in real estate innovation.
During the project’s launch, the DLD projected that the tokenized real estate market could reach a value of $16 billion by 2033, representing approximately 7% of Dubai’s total real estate transaction volume.
In conclusion, it is imperative for investors and individuals in the virtual asset space to exercise due diligence and verify the authenticity of entities claiming to be part of official projects. By staying informed and cautious, stakeholders can contribute to safeguarding the integrity of the industry and protecting their investments.