- Only VARA and DLD-approved firms may join the real estate tokenization pilot.
- Unlicensed promotions targeting Dubai residents may violate virtual asset regulations.
- Engaging with unauthorized platforms risks financial loss and lacks regulatory protection.
Dubai’s Virtual Assets Regulatory Authority (VARA) and the Dubai Land Department (DLD) have jointly issued a formal alert warning consumers and the market about false claims related to the DLD Real Estate Tokenisation Project.
The advisory targets entities falsely stating involvement in a trial initiative launched March 19, 2025, which is currently restricted to a small, select group of officially approved participants
Who is Authorized for the DLD Tokenization Trial?
According to the announcement, no organizations other than those expressly sanctioned by both VARA and DLD are authorized to participate in the trial. Entities advertising their participation without formal verification from either authority violate regulatory expectations. VARA emphasized that public confirmation of a participant’s status will only be communicated through official DLD or VARA channels.
This misrepresentation could have legal implications, as promoting unverified involvement could be interpreted as an attempt to influence consumer behavior or investor decision-making under false pretenses.
Related: Dubai Makes Tokenizing Real Estate Official with DLD-VARA Partnership
How Does VARA Address Unlicensed Crypto Services?
VARA has raised concerns about promoting real estate tokenization services linked to Dubai-based assets. Entities marketing these services to Dubai residents may engage in virtual asset (VA) activities without the required license or official authorization.
The authority pointed out that unlicensed operations remain outside the scope of the regulated framework, which includes consumer protection standards and risk mitigation measures. In response, VARA has the authority to impose public alerts, financial sanctions, and trading restrictions under the provisions of Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022.
Risks to Market Integrity and Investor Safety
Consumers engaging with unauthorized platforms claiming ties to the DLD project face significant risks, the regulators noted. These platforms operate beyond regulatory oversight, leaving users vulnerable to financial loss without the legal safeguards of the official pilot program.
Related: Dubai’s VARA: Striking the Right Balance in Crypto Regulation
VARA emphasized that such misleading promotions damage trust in the regulatory environment and urged all stakeholders to verify any firm’s licensing or project participation status via the official VARA Public Register before engaging.
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