Dubai’s VARA alerts public about fake participants in real estate tokenization initiative

The Dubai Virtual Assets Regulatory Authority (VARA) has issued a public warning about unauthorized entities falsely claiming to be part of the Dubai Land Department’s (DLD) Real Estate Tokenization Project.

According to an April 23 official statement, VARA emphasized that the initiative launched on March 19 is restricted to a select group of participants approved by both the DLD and VARA.

The regulator stressed that any company or platform promoting involvement in the project without formal approval is misrepresenting its status.

These misleading claims, particularly those targeting Dubai-based investors, may violate VARA’s marketing and promotional regulations.

Considering this, the agency clarified that such entities could be engaged in unlicensed virtual asset (VA) activities, which are strictly prohibited unless sanctioned by relevant authorities.

VARA also warned that unlicensed platforms presenting themselves as part of the tokenization project pose a significant threat to consumer protection. Since these firms are not officially involved, they are not subject to the oversight and safeguards built into the project’s pilot framework.

The regulator cautioned that investors and market participants should thoroughly verify the licensing status of any firm offering virtual asset-related services in Dubai. VARA urged the public to treat any unverified promotional material or service offering with skepticism and report suspicious activity.

In parallel, the DLD reaffirmed its commitment to the tokenization project, which aims to digitize property title deeds and convert them into real-world asset (RWA) tokens using blockchain technology. This initiative positions Dubai as a regional leader in real estate innovation.

During the project’s launch, the DLD projected that the tokenized real estate market could grow to a value of $16 billion by 2033, representing about 7% of Dubai’s total real estate transaction volume.