Dubai’s Crypto Regulator Alerts Investors on New Memecoins Flooding Market 

Dubai’s crypto regulatory physique has issued an alert in regards to the dangers associated to memecoin investments owing to their growing market penetration. The Virtual Assets Regulatory Authority (VARA) of Dubai has strictly requested the town’s investor neighborhood to be cautious whereas partaking with memecoins, calling them “extremely speculative” belongings. As per VARA, memecoins pose a big danger of economic loss to those that have interaction with it. Earlier this month, the commissioner of the US SEC had additionally highlighted the potential for memecoins promising excessive returns in a brief span of time being rip-off tokens.

VARA was established in March 2022 to supervise the crypto trade in Dubai. In latest months, the regulatory physique has stepped up scrutiny over unregulated and dangerous digital belongings.

Last week, in an official post, VARA highlighted its considerations with memecoins, a class of crypto belongings branded after trending social media personalities, animals, or memes. Dogecoin and Shiba Inu are amongst in style memecoins which have managed to carve a distinct segment for this class of crypto tokens within the broader market.

“Memecoins are incessantly topic to market manipulation. Many such belongings lack intrinsic worth and derive their pricing from social media tendencies, hype, or deceptive promotional methods,” VARA mentioned in its assertion.

The regulatory physique has suggested buyers to chorus from partaking with newly launched memecoins, particularly those that declare to fetch unrealistic returns to the buyers. The physique has the facility to limit any suspicious memecoin mission with out prior discover. It has suggested crypto buyers to guard their funds towards questionable initiatives with lack of market historical past and fraudulent patterns.

The authority, in the meantime, has additionally warned crypto initiatives and companies from selling unregistered tokens in Dubai.

“Any promotion, promoting, or solicitation of digital belongings should adhere to VARA’s advertising and marketing rules. Entities partaking in unauthorised digital asset actions could also be topic to enforcement motion,” it added.

In a latest interview with Bloomberg, SEC commissioner Hester Peirce additionally addressed the memecoin menace. He mentioned that many memecoins don’t adjust to present rules within the US and requested the Congress and the Commodity Futures Trading Commission to handle considerations round memecoins.

As per Forbes, the memecoin market valuation stands at $60.04 billion (roughly Rs. 5,21,641 crore). Dogecoin, Shiba Inu, Pepe, Bonk, and Floki have been listed by Forbes as the highest 5 memecoins by market cap.