Virtual Assets Regulatory Authority has issued a public warning to investors against the advertisements of Meme coins due to their high -risk nature.
Dubai’s crypto regulator The Virtual Assets Regulatory Authority has issued a warning about the meme coin promotion as the meme coins show no signs of losing popularity. On 13 February Public alertThe groom, which oversees the virtual asset area in Dubai, warned investors about the risks bound by these tokens, including price manipulation, liquidity issues, and potential frauds.
“Mem coins are highly speculative and volatile property, often subject to manipulation in the market. Many such assets lack internal value and achieve their pricing from social media trends, propaganda or misleading strategies. ,
Vara
The groom warned that the promises of huge profits are often a red flag for scams, saying that meme coin trading can be risky, prices crashs rapidly and the liquidity dries up. The regulator said, “There is a risk of significant financial loss within a short deadline due to price collapse, lack of liquidity or scams.”
The UAE first mentioned the issuance of cryptocurrency license in February 2022. A year later, Dubai rolled out the rules for crypto companies, making them necessary to get approval and get the right license to work in the city. There are also specific rules for activities like issuing tokens, providing counseling, providing storage and running exchange services. According to Koingco’s data, according to the press time, Meme coin market capitalization is $ 81.1 billion.
