UAE Virtual Assets Regulator Says Islamic Coin Issuer Has 'Cooperated Fully'

Bored Gen DMCC, the issuer of islamic coin, has cooperated fully with the Virtual Assets Regulatory Authority’s ongoing investigation into the token’s issuance and distribution. Bored Gen, however, still needs to “secure appropriate approvals” before it undertakes to distribute the islamic coin (ISLM) in the Dubai market.

BG Undertook Remedial Measures

The United Arab Emirates (UAE) digital assets regulator, the Virtual Assets Regulatory Authority (VARA), recently revealed that Bored Gen DMCC (BG) — the issuer of islamic coin — had cooperated fully during its investigation into the issuance, marketing and distribution of the token. It added that BG had “undertaken remedial measures, including the implementation of adequate public disclosures for improved market assurance.”

However, in its Nov. 16 enforcement notice, the regulator said it had determined that the issues which are the subject of its ongoing investigation constituted “technical non-compliance.” The notice went on to state that BG still needs to “secure appropriate approvals” before it undertakes any distribution of islamic coin (ISLM) in the Dubai market. The notice added:

BG may continue business operations related to non-VA Activities, subject to maintenance of regular engagement with VARA and fulfilment of the necessary obligations including full compliance with all applicable regulatory requirements.

As previously reported by News, VARA blocked the sale and distribution of ISLM after a determination was made that BG lacked the authority to do so.

Issuer vs Developer Entity

Meanwhile, a statement issued on behalf of BG reveals that the organization is not the issuer of the token as stated by VARA. According to the statement, BG is in fact, a “developer entity” working to develop essential components such as the Haqq Wallet and Launchpad. It also asserts that the public sale of ISLM took place on the Republic platform, a regulated entity based in the United States.

In addition, the token sale is said to have adhered to Reg D and S for U.S. and non-U.S. investors respectively. On the other hand, Dubai was explicitly excluded from the sale, the statement added.

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