Dubai’s Crypto Regulatory Body has issued an alert about the risks related to memecoin investment that is due to their growing market penetration. Dubai’s virtual assets Regulatory Authority (Vara) strictly asked the city’s investor community to be vigilant, engaging with Memcoin, calling them “highly speculative” property. According to the groom, Memcoins pose a significant risk of financial loss to those who connect with it. Earlier this month, the US SEC commissioner also highlighted the possibility of Memcoins, which promised high returns in a short time of scam tokens.
Vara was established in March 2022 to oversee the Crypto industry in Dubai. In recent months, the regulatory body has investigated irregular and risky digital assets.
Last week, one in Government postThe groom highlighted his concerns with a category of branded crypto assets, a category of branded crypto assets after trending social media personality, animals, or memes. Dogecoin and Shiba Inu are one of the popular memecoins, who have managed to create a place for this category of crypto tokens in the broad market.
“Memcoins are often subject to manipulation in the market. Many such assets lack internal value and achieve their pricing from social media trends, propaganda or misleading promotional strategies, ”the groom said in his statement.
The regulatory body has advised investors to avoid engaging with newly launched memecoin, especially those who claim to bring unrealistic returns to investors. The body has the power to ban any suspected memecoin project without prior notice. This has advised crypto investors to protect their finance against suspected projects with lack of market history and fraud pattern.
Meanwhile, the authority has also warned the crypto projects and firms promoting unregistered tokens in Dubai.
“Any promotion, advertising or plea of virtual assets should follow the marketing rules of the groom. Institutions engaged in unauthorized virtual asset activities may be subject to enforcement action, ”he said.
In a recent interview with BloombergSEC Commissioner Haster Peerus also addressed Memcoin Menus. He said that many memecoins do not follow the current rules in the US and have asked the Congress and Commodity Futures Trading Commission to remove concerns around Memcoin.
As ForbesMemcoin market valuation is $ 60.04 billion (about Rs 5,21,641 crore). Dogecoin, Shiba Inu, Pepe, Bonk, and Floki are listed as the top five MEMCINE by the market cap by Forbes.
