According to a recent market alert from Dubai’s virtual asset regulatory body, Islamic Coin (ISLM) from Bored Gen (BG) DMCC, situated in Dubai, UAE, has been illegally produced, marketed, and distributed to consumers.
Investors and customers are urged to take note of the unauthorized virtual asset Issuance, as per the notice, given that BG is neither a VARA licensed nor registered VA issuer, nor a VASP that has been given a No-Objection Confirmation to issue a virtual asset like the ISLM token, which is being offered for public sale to interested buyers, including [without limitation] Dubai residents.
In accordance with a VARA notice, the public sale of ISLM by BG through a Regulation D Offering organized by OpenDeal Portal LLC, doing business as Republic on republic.com may violate Regulation III.A.1 (such activity constitutes the placement and distribution of a Virtual Asset).
Furthermore, as described by the definition of “Broker-Dealer Services,” such conduct is entirely governed by the VARA system and necessitates a VA Broker Dealer License, which neither BG nor Republic has secured from VARA.
A VARA notice states that the public sale of ISLM by BG through a Regulation D Offering run by OpenDeal Portal LLC, doing business as Republic on republic.com might be in violation of Regulation III.A.1 (doing so would constitute the placement and distribution of a Virtual Asset).
Additionally, as specified by the definition of “Broker-Dealer Services,” such activity is totally supervised by the VARA system and requires a VA Broker Dealer License, which neither BG nor Republic has obtained from VARA.
Enforcement action has been taken against BG as a result of the violation of VARA’s regulations outlined above, and VARA has instructed BG to immediately stop all distribution of ISLM and to stop issuing and/or marketing ISLM until approval from VARA has been received.
This follows a number of media pieces that questioned the accuracy of the data provided by Islamic Coin and the token sale by Bored Gem.
