Dubai's VARA and DLD Issue Warning Against False Claims Related to the DLD Real Estate Tokenization Project

The advisory targets entities falsely stating involvement in a trial initiative launched March 19, 2025, which is currently restricted to a small, select group of officially approved participants

Dubai’s Virtual Assets Regulatory Authority (VARA) and the Dubai Land Department (DLD) have jointly issued a formal alert concerning false claims linked to the DLD Real Estate Tokenisation Project.

The advisory, issued on August 21, targets entities falsely stating involvement in a trial initiative launched March 19, 2025, which is currently restricted to a small, select group of officially approved participants.

Who Is Authorized for the DLD Tokenization Trial?According to the announcement, no organizations other than those expressly sanctioned by both VARA and DLD are authorized to participate in the trial. Entities advertising their participation without formal verification from either authority violate regulatory expectations.

VARA emphasized that public confirmation of a participant’s status will only be communicated through official DLD or VARA channels. This misrepresentation could have legal implications, as promoting unverified involvement could be interpreted as an attempt to influence consumer behavior or investor decision-making under false pretenses.

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How Does VARA Address Unlicensed Crypto Services?Furthermore, VARA is addressing concerns about entities promoting real estate tokenization services linked to Dubai-based assets. These entities may be undertaking virtual asset (VA) activities without the required license or official authorization.

The authority pointed out that unlicensed operations remain outside the scope of the regulated framework, which includes consumer protection standards and risk mitigation measures. In response, VARA has the authority to impose public alerts, financial sanctions, and trading restrictions under the provisions of Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022.

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Risks to Market Integrity and Investor SafetyConsumers engaging with unauthorized platforms claiming ties to the DLD project face significant risks, the regulators noted. These platforms operate beyond regulatory oversight, leaving users vulnerable to financial loss without the legal safeguards of the official pilot program.

"Crucially, platforms operating without the required licenses or authorization from both DLD and VARA fall outside the scope of the regulatory framework and are not subject to the consumer protection and risk mitigation standards that apply to approved participants in the pilot program," the statement reads.

Finally, VARA highlighted that such misleading promotions ultimately damage trust in the regulatory environment. Both parties involved in the initiative urge all stakeholders to verify any firm’s licensing or project participation status via the official VARA Public Register or the DLD website.