The Virtual Assets Regulatory Authority of Dubai has sounded the alarm over companies making false claims about their participation in the city's high-profile real estate tokenization pilot. This warning comes as a response to several entities misrepresenting their affiliation with the project, which may be in breach of the emirate's virtual asset regulations. In a joint statement with the Dubai Land Department, VARA emphasized that only explicitly approved entities are authorized to take part in the pilot, which was launched on March 19. Any company promoting its involvement without formal approval is deemed to be misrepresenting its status.
Although no specific companies were named, the regulator's warning serves as a reminder of the importance of verifying claims in the industry. The real estate tokenization initiative has the potential to account for a significant portion of property deals in the future, with estimates suggesting it could make up 7% of all transactions by 2033, valued at 60 billion dirhams.
This warning comes at a time when Dubai is gearing up to host Token 2049, a major conference that has previously attracted a number of scams, according to on-chain investigator ZachXBT.