Dubai’s crypto regulator said any virtual assets issued in the emirate must adhere to its regulations.
Dubai’s Virtual Assets and Regulatory Authority (VARA) issued a warning about the risks associated with memecoins, cautioning investors against speculative and unregulated assets.
On Feb. 13, Dubai’s crypto regulator warned investors that memecoins are high-risk and unregulated. The regulator said these assets are speculative, volatile and subject to market manipulation.
VARA urged investors to exercise caution when presented with claims of unrealistic returns, emphasizing that such promises often signal fraudulent schemes.
The regulator also warned that memecoins may rapidly collapse, leading to significant financial losses within short timeframes.
VARA warns investors that memecoin platforms may be restricted without notice
In addition, VARA warned the public that entities engaging in unauthorized virtual asset activities may be subject to enforcement action.
The regulator said consumers and investors must know it can restrict access to memecoin platforms without prior notice. “It is advisable to take necessary measures to safeguard personal financial security,” VARA added.
Elsewhere, the United Kingdom’s Financial Conduct Authority (FCA) has also been eyeing memecoins. On Dec. 17, the regulator posted a warning against a Solana-based memecoin project called Retardio.
The FCA said investors who engage with the project may not be protected under the country’s Financial Ombudsman Service and Financial Services Compensation Scheme.
