The Virtual Assets Regulatory Authority (VARA) of Dubai has issued a warning to consumers and investors about the potential risks linked to advertisements promoting subscriptions to memecoins. Memecoins are categorized as highly speculative and volatile assets, often susceptible to market manipulation.

According to VARA, many memecoins lack intrinsic value and their pricing is primarily influenced by social media trends, hype, or misleading promotional tactics. The authority advised investors to be cautious when confronted with claims of unrealistic returns, as these often signify fraudulent schemes. Furthermore, there is a real risk of significant financial loss within short timeframes due to price collapses, liquidity issues, or scams.

VARA emphasized that any virtual asset issuance from Dubai must comply with its regulations and rulebooks. Promotions, advertising, or solicitation of virtual assets must also align with VARA’s Marketing Regulations. Entities that engage in unauthorized virtual asset activities could face enforcement actions. The authority further cautioned that access to memecoin platforms may be restricted without advance notice and recommended that consumers take necessary steps to protect their personal financial security.

The Virtual Assets Regulatory Authority is the exclusive authority overseeing virtual assets across Dubai’s free zones and mainland, excluding the jurisdiction of the Dubai International Financial Centre (DIFC).