UAE regulator acknowledges full cooperation from Islamic Coin issuer

In a notable development in the UAE’s digital asset market, the Virtual Assets Regulatory Authority (VARA) has acknowledged the full cooperation of Bored Gen DMCC (BG), the entity associated with Islamic Coin. 

VARA says BG must maintain regular engagement

VARA’s investigation, focusing on the issuance and distribution of Islamic Coin, revealed that BG has undertaken significant remedial actions. These include implementing enhanced public disclosures, a move aimed at increasing market transparency and confidence.

However, despite these efforts, VARA’s recent enforcement notice highlighted technical non-compliances by BG, particularly in securing necessary approvals for the distribution of Islamic Coin (ISLM) in Dubai. The notice, issued on November 16, stipulates that while BG can continue its operations unrelated to Virtual Assets, it must maintain regular engagement with VARA and adhere to all regulatory requirements. While acknowledging BG’s cooperation, VARA maintains its stance on regulatory adherence, emphasizing that BG may continue its non-Virtual Asset (VA) related business operations. However, this is contingent upon BG’s sustained engagement with VARA and adherence to all relevant regulatory requirements.

Clarifications on BG’s role

In an intriguing twist, BG released a statement clarifying its role in relation to Islamic Coin. Contradicting VARA’s designation of BG as the coin’s issuer, the statement defines BG as a ‘developer entity’ responsible for developing key components like the Haqq Wallet and Launchpad. This distinction is crucial in understanding the regulatory framework surrounding Islamic Coin.

BG also highlighted that the public sale of Islamic Coin occurred on the Republic platform, a U.S.-regulated entity, adhering to specific regulations (Reg D and S) for U.S. and international investors. Notably, the statement emphasized that the Dubai market was deliberately excluded from this sale, reflecting a cautious approach to the region’s regulatory environment.