VARA Issues Consumer Alert Over Misrepresentation in DLD Real Estate Tokenization Project
The Dubai Virtual Assets Regulatory Authority (VARA), in coordination with the Dubai Land Department (DLD), has issued a consumer and marketplace alert addressing recent misrepresentations surrounding the “DLD Real Estate Tokenization Project.”
The alert warns against entities falsely claiming to be involved in the pilot phase of the Project, which officially launched on March 19, 2025. Only a limited number of participants, explicitly approved by both DLD and VARA, are authorized to take part.
“Any entity promoting their involvement in the Project without formal confirmation from either VARA or DLD is misrepresenting their status,” VARA stated, adding that official confirmations will be issued solely by the relevant authorities.
Warning Against Unlicensed Promotions
The regulator also cautioned that any firms marketing real estate tokenization services linked to Dubai-based assets—without the appropriate licence—may be promoting unlicensed Virtual Asset (VA) activities. This is considered a breach of VARA’s Marketing Regulations and could lead to enforcement measures.
Consumers and investors are urged to be vigilant. Engaging with unlicensed platforms or companies misrepresenting their participation in the pilot exposes them to significant financial risks, as such services fall outside VARA’s regulatory protections.
As per Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, any firm conducting VA activities in or from Dubai must be licensed by VARA. Those violating these provisions could face serious consequences, including financial penalties, public warnings, or bans.
Public Guidance
VARA advises consumers to verify any claims through its official Public Register and to treat any unconfirmed participation claims with caution. Suspected violations can be reported directly to the Authority.
VARA reiterated its commitment to maintaining trust, transparency, and the integrity of Dubai’s digital asset ecosystem.
