Dubai Crypto Regulator Warns Against False Claims in Real Estate Tokenization Pilot

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a warning to firms falsely claiming participation in the city’s official real estate tokenization pilot. The alert, released in coordination with the Dubai Land Department (DLD), highlights growing concerns over unauthorized entities exploiting the emirate’s blockchain-based property title deed initiative for misleading promotions.

Launched on March 19, the limited pilot program is a key part of Dubai’s efforts to position itself as a global hub for digital assets and Web3 innovation. The tokenization initiative, if successful, could represent up to 7% of all property transactions in Dubai by 2033—equating to a market value of roughly 60 billion dirhams (approximately $16 billion).

VARA emphasized that only entities explicitly approved by both DLD and VARA are permitted to participate. Any company promoting involvement without formal authorization is in violation of Dubai’s virtual asset laws and is misrepresenting its status. The regulator, however, did not disclose the names of firms involved in the alleged misrepresentation.

The announcement comes just days ahead of Token2049 Dubai, a major Web3 and blockchain event that has historically seen increased activity from suspicious projects. In early March, prominent on-chain investigator ZachXBT noted the conference’s history of attracting scams and fraudulent actors.

As Dubai intensifies its regulatory oversight in the digital asset space, VARA’s warning serves as a reminder to investors and industry participants to verify official affiliations and avoid engaging with unverified platforms. The move aligns with the emirate’s broader push to maintain trust, transparency, and compliance in its growing virtual economy.