Bored Gen’s Compliance Challenge: Navigating VARA’s Investigation into ISLM Token Distribution
Bored Gen DMCC, the issuer of the Islamic coin (ISLM), has fully cooperated with the Virtual Assets Regulatory Authority’s (VARA) ongoing investigation into the token’s issuance and distribution.
In response to the investigation, Bored Gen has undertaken remedial measures, including implementing enhanced public disclosures for increased market assurance. However, VARA’s enforcement notice on November 16 highlighted technical non-compliance issues, stating that Bored Gen still needs to secure appropriate approvals before distributing ISLM in the Dubai market.
The notice permits Bored Gen to continue non-virtual asset activities, provided they maintain regular engagement with VARA and comply with all regulatory requirements. Contrary to VARA’s characterization, Bored Gen asserts that it is a “developer entity” and not the issuer of the token. The organization clarifies that the public sale of ISLM occurred on the Republic platform, a U.S.-based regulated entity, following Reg D and S guidelines for U.S. and non-U.S. investors, respectively, with explicit exclusion of Dubai from the sale.
Clever Robot News Desk 27th November 2023
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