Buy Cheems (CHEEMS)

As the meme coin craze continues, the market capitalization increased from $20 billion in January 2024 to $120 billion by the end of the same year. It is no surprise that Dubai’s Virtual Assets Regulatory Authority (VARA) has issued an alert informing consumers and investors of the risks associated with advertisements promoting subscriptions to memecoins.

The alert emphasized that many meme coins lack intrinsic value and derive their pricing from social media trends, hype, or misleading promotional strategies.

Memecoins issued out of Dubai need to adhere to VARA regulations

Per VARA, “Investors should exercise caution when presented with claims of unrealistic returns, as these often indicate fraudulent schemes.” VARA also alerts investors and consumers to the fact that there is a risk of significant financial loss within short timeframes due to price collapses, liquidity shortages, or scams.

The regulator also clarified that any virtual asset issued from Dubai including any promotions, advertisements, or solicitation needs to adhere to regulations and rulebooks set by VARA.  

VARA warns entities engaging in unauthorized virtual asset activities of possible enforcement action. 

“Both consumers and investors should be aware that access to memecoin platforms may be restricted without prior notice. Thus, everyone must take necessary measures to safeguard personal financial security.”

The announcement from VARA comes days after the UAE Ministry of Energy (MOEI) partnered with Shiba Inu to develop Web3 solutions in energy, infrastructure, and more. The UAE Ministry of Energy will leverage Shiba Inu’s broad range of Web3 technologies to support public service efficiency, green infrastructure, and citizen-focused governance models.

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