The Virtual Assets Regulatory Authority (VARA) has issued a warning to investors about firms falsely claiming to be part of Dubai’s prominent real estate tokenization pilot.
In collaboration with the Dubai Land Department (DLD), VARA announced on Tuesday that several entities have inaccurately implied their involvement in the DLD’s blockchain-based property title deed initiative, which was launched as a limited pilot on March 19.
While no specific firms were named, VARA clarified: “Only entities explicitly approved by DLD and VARA are authorized to participate. Any company promoting its involvement without formal confirmation is misrepresenting its status.”
As previously reported by CoinDesk, the tokenization initiative could account for 7% of all real estate transactions in Dubai by 2033, with an estimated total value of 60 billion dirhams ($16 billion). The project is part of the city’s broader vision to become a global hub for technology and digital assets.
Also read: Ripple, Ctrl Alt, and Dubai Land Department launch tokenized real estate title deeds on XRP ledger
VARA also warned that entities engaging in or promoting unauthorized activities, or misrepresenting their regulatory status, may face enforcement actions. These could include public warnings, financial penalties, and market restrictions.
Addressing consumers, VARA urged the public to exercise caution and verify the licensing status of any firm claiming to offer virtual asset-related services by checking the official VARA Public Register. It emphasized that any promotional material referencing participation in the project, without formal validation from VARA or DLD, should be treated with skepticism.