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Dubai’s crypto regulator said any virtual assets issued in the emirate must adhere to its regulations.
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Dubai’s Virtual Assets and Regulatory Authority (VARA) issued a warning about the risks associated with memecoins, cautioning investors against speculative and unregulated assets.
On Feb. 13, Dubai’s crypto regulator warned investors that memecoins are high-risk and unregulated. The regulator said these assets are speculative, volatile and subject to market manipulation. VARA wrote:
“Many such assets lack intrinsic value and derive their pricing from social media trends, hype, or misleading promotional strategies.”
VARA urged investors to exercise caution when presented with claims of unrealistic returns, emphasizing that such promises often signal fraudulent schemes.
The regulator also warned that memecoins may rapidly collapse, leading to significant financial losses within short timeframes.
This article first appeared at Cointelegraph.com News
