Dubai’s Virtual Assets Regulatory Authority (VARA) published a consumer and marketplace alert warning consumers and investors about the risks associated with advertisements promoting subscriptions to memecoins, describing them as highly speculative and volatile and frequently subject to market manipulation. The notice flags that many memecoins lack intrinsic value and may be priced based on social media trends, hype, or misleading promotional strategies, with claims of unrealistic returns potentially signalling fraudulent schemes. VARA also reminded market participants that any virtual asset issuance from Dubai must comply with VARA regulations and rulebooks, and that promotion, advertising, or solicitation of virtual assets must meet VARA’s Marketing Regulations, with unauthorised activities potentially subject to enforcement; it added that access to memecoin platforms may be restricted without prior notice.
Dubai Virtual Assets Regulatory Authority 2025-02-13
Dubai Virtual Assets Regulatory Authority issues consumer alert on memecoin subscription advertising
Dubai Virtual Assets Regulatory Authority warned about memecoin risks, citing their speculative nature and market manipulation susceptibility. Memecoins often lack intrinsic value and may be swayed by social media or misleading promotions, with unrealistic return claims suggesting fraud. VARA stressed compliance with regulations for virtual asset issuance and marketing, warning that unauthorized activities could face enforcement and platform access might be restricted without notice.