Dubai’s crypto regulator VARA warns against meme coin promotions

The regulatory authority for virtual assets has issued a public alert warning investors against the advertisements of parts even because of their high -risk nature.

Dubai cryptography regulation The regulatory authority for virtual assets has issued a warning same corner Promotions as coins show no sign of loss of popularity. In a February 13 public alertVara, who oversees the virtual asset sector in Dubai, warned investors about the risks linked to these tokens, including price manipulation, liquidity problems and potential fraud.

“The same parts are very speculative and volatile active ingredients, frequently subject to market manipulation. Many of these assets lack intrinsic value and derive their prices from social media, media or deceptive promotional strategies. »»

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Vara has warned that the promises of huge benefits are often a red flag for scams, adding that trading parts of memes can be risky, prices crashing quickly and that liquidity was dried up. “There is a significant risk of financial loss within short -term deadlines due to prices, liquidity shortages or scams,” said the regulator.

The United Arab Emirates mentioned cryptocurrency licenses for the first time in February 2022. A year later, Dubai deployed regulations for cryptographic companies, which makes them necessary to obtain approval and good licenses for operate in the city. There are also specific rules for activities such as the issuance of tokens, the consultation, storage and execution of exchange services. At the time of the press, the market capitalization of the same part is $ 81.1 billion, according to Coingecko data.