Compliance Collaboration Between Bored Gen DMCC and UAE Virtual Asset Regulator
In a recent oversight exercise, UAE’s dedicated overseer of digital assets, the Virtual Assets Regulatory Authority (VARA), has acknowledged the full cooperation of Bored Gen DMCC, the company associated with the Islamic Coin (ISLM), amid inquiries into its launch and marketing tactics. The authority was keen to highlight that Bored Gen took swift action, instituting necessary corrections, which included enhancing public disclosures to elevate market confidence.
Despite these positive steps towards regulatory alignment, VARA’s notice dated November 16 expressed that Bored Gen’s activities had been identified as falling short in terms of technical regulatory adherence. Consequently, VARA has directed that Bored Gen must obtain the necessary clearances prior to proceeding with any further dissemination of ISLM within Dubai’s burgeoning market. Further iterating VARA’s stance, the notice delineated:
Bored Gen is allowed to continue its business operations unrelated to Virtual Assets, on condition that it maintains active communication with VARA and ensures it meets all regulatory obligations with stringent adherence to the applicable laws and guidelines.
Background narratives indicate VARA previously took measures to halt the circulation and sale of ISLM, subsequent to recognizing Bored Gen’s failure in securing the necessary mandate for such operations.
Distinguishing Roles within the Islamic Coin Ecosystem
Clarifying the muddled representations, Bored Gen DMCC issued a statement differentiating its role from that of a token issuer—a title ascribed to it by VARA. The declaration portrayed Bored Gen as an entity devoted to expanding foundational structures like the Haqq Wallet and its Launchpad rather than issuing the coin itself. Additionally, the statement highlighted that the public offering for ISLM was carried out on a US-regulated platform, Republic, adhering strictly to Regulation D and S for domestic and international investors respectively – with a specific exclusion of the Dubai market from the sale.
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Frequently asked Questions
1. What is the role of the UAE Virtual Assets Regulator?
The UAE Virtual Assets Regulator is responsible for overseeing and regulating virtual assets, ensuring compliance with relevant laws and regulations within the United Arab Emirates.
2. Who is the Islamic Coin Issuer and what is its significance?
The Islamic Coin Issuer is an entity that issues virtual assets, specifically coins, that adhere to Islamic principles and comply with Shariah law. Its significance lies in providing a platform for Muslims to participate in the virtual assets market while adhering to their religious beliefs.
3. How does the UAE Virtual Assets Regulator ensure full cooperation from the Islamic Coin Issuer?
The UAE Virtual Assets Regulator maintains a strong relationship with the Islamic Coin Issuer through regular communication and collaboration. This includes conducting audits, reviewing compliance reports, and ensuring that the issuer follows the guidelines set by the regulator.
4. Are the virtual assets issued by the Islamic Coin Issuer considered halal (permissible) according to Islamic principles?
Yes, the virtual assets issued by the Islamic Coin Issuer are deemed halal as they are designed and structured in accordance with Shariah principles. This ensures that they comply with Islamic ethical and financial guidelines.
5. What measures does the UAE Virtual Assets Regulator have in place to safeguard investors?
The UAE Virtual Assets Regulator has implemented strict regulations and guidelines to protect investors. These measures include conducting thorough due diligence on the Islamic Coin Issuer, ensuring transparency in operations, and regularly monitoring the issuer’s compliance with Shariah principles.
6. Can individuals of any faith invest in virtual assets issued by the Islamic Coin Issuer?
Yes, individuals of any faith can invest in virtual assets issued by the Islamic Coin Issuer. While the issuer primarily caters to Muslims seeking Shariah-compliant investments, it is open to investors from all backgrounds who are interested in participating in the virtual assets market.
7. What benefits does the cooperation between the UAE Virtual Assets Regulator and the Islamic Coin Issuer bring?
The cooperation between the UAE Virtual Assets Regulator and the Islamic Coin Issuer ensures a strong regulatory framework for virtual assets in the UAE while providing a reliable platform for Islamic investors. It fosters trust in the market, encourages innovation, and promotes the growth of Shariah-compliant virtual assets.