The Virtual Assets Regulatory Authority (VARA) has issued a public alert cautioning consumers and market participants about entities misrepresenting their involvement in a real estate tokenization project. In an alert jointly issued with the Dubai Land Department (DLD), the virtual assets regulator said no entities beyond those specifically approved by the two bodies are authorized to participate in the ongoing pilot phase.

The alert reiterated that confirmation of participation is communicated directly to the concerned entities via VARA or DLD’s official channels. It also warned that entities marketing real estate tokenization services linked to Dubai properties could be in violation of regulations.

“Entities marketing real estate tokenisation services linked to assets located in Dubai, particularly where promotional materials or digital platforms target Dubai-based customers, may be promoting unlicensed Virtual Asset (VA) activities, unless licensed or otherwise authorised by the relevant authorities. Such behaviour may breach VARA’s Regulations, including, but not limited to, the Marketing Regulations and may be subject to enforcement action,” the joint alert explained.

Launched on March 19, 2025, the Real Estate Tokenisation Project aims to digitize property title deeds using blockchain technology. Proponents of the project assert that it will transform real estate ownership in part because it fractionalizes ownership, making it possible for small investors to own property.

It also allows international investors to participate in Dubai’s real estate market without traditional barriers. Prospects of foreign investment in Dubai real estate likely attracted unlicensed entities, scammers targeting UAE residents, prompting VARA and DLD warnings.

Meanwhile, VARA and DLD reminded investors of the substantial financial risks associated with engaging with platforms falsely claiming participation in the official pilot project. According to the alert, such unapproved services lack the crucial consumer protection measures or robust risk management frameworks that are integral to the regulated pilot environment.

Entities found engaging in or promoting unauthorized activities face enforcement actions including public alerts, financial penalties, and outright prohibitions, the alert added.

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