Warning on Unauthorized Entities
The Dubai Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA) have jointly issued an important notice warning the public about unauthorized entities that are misleadingly claiming to be part of an official pilot project for real estate tokenization.
Official Participation Confirmation
This warning specifies that only those entities that have received explicit approval from VARA or DLD are authorized to participate in the current pilot phase of this initiative. Their announcement emphasized that any confirmation of participation should only be obtained through official channels from VARA or DLD.
Regulatory Violations and Risks
Entities promoting tokenization services related to properties in Dubai may be violating local regulations, a caution highlighted in their alert. Such unauthorized marketing could be seen as promoting unlicensed virtual asset activities, especially if they are targeting customers based in Dubai. Violators may be breaching VARA’s regulations, particularly concerning marketing initiatives, and could face severe enforcement actions.
The Real Estate Tokenization Project
The Real Estate Tokenization Project, which was launched on March 19, 2025, aims to revolutionize property ownership by digitizing title deeds through blockchain technology. Advocates of the project argue that this innovative approach will allow for fractional ownership, enabling smaller investors to participate in real estate acquisitions. This also opens up opportunities for international investors to engage in Dubai’s real estate market without the usual barriers.
Investor Caution Advised
However, the prospects of foreign investment have drawn the attention of unlicensed entities and scammers targeting residents in the UAE. In light of this, VARA and DLD are urging investors to exercise caution and be aware of the significant financial risks associated with engaging with platforms that falsely claim involvement in the pilot project. Such unauthorized services lack the necessary consumer protections and risk management protocols essential for a regulated environment.
Potential Penalties
Entities found engaging in or promoting these unauthorized activities could be subjected to various penalties, including public alerts, fines, or complete bans from operating in the sector.
