- VARA states that JPEX operates without the necessary regulatory oversight and false claims about its regulatory status.
- It also states that JPEX has not received approval for its promotional, advertising, solicitation, or marketing efforts.
- VARA has referred to Cabinet Resolution No. 111/2022, which advises the market against engaging with unregulated VASPs.
- VARA encourages customers to report their experiences to VARA to assess potential misconduct.
The Virtual Assets Regulatory Authority (VARA) has issued a critical alert that should be heeded by investors and market participants. This alert concerns the actions being taken against the Virtual Asset Service Provider (VASP) known as JPEX and its associated entities within its holding group. The reason for this alert is to highlight the serious concerns surrounding the unregulated operations and misleading claims made by JPEX regarding its regulatory standing.
First and foremost, VARA’s primary concern is that JPEX is operating without the necessary regulatory oversight. It’s essential to understand that JPEX has neither been regulated by nor registered with VARA. This means that any Virtual Asset (VA) activities offered by JPEX, whether in the Emirate of Dubai or elsewhere, have not received the required authorization or approval from VARA.
Another critical issue is the false claims made by JPEX and certain individuals associated with the organization regarding their regulatory status. VARA emphatically states that any statements by JPEX suggesting that it is regulated by VARA or subject to its oversight are entirely untrue. In fact, Dubai Law No. 4 of 2022 designates all VA activities within or originating from the Emirate of Dubai as fully regulated and under VARA’s authority. Therefore, if JPEX is involved in such activities, it is in direct violation of Dubai Law.
Moreover, VARA has observed that JPEX has not received approval for its promotional, advertising, solicitation, or marketing efforts. Consequently, JPEX is not authorized to offer, promote, advertise its products or services, or solicit client participation within or from the Emirate of Dubai.
VARA has also referred to Cabinet Resolution No. 111/2022, which advises the market against engaging with unregulated VASPs. This resolution serves as a clear warning to investors and market participants, urging them to exercise caution and conduct thorough due diligence when dealing with virtual asset service providers.
To address this situation, VARA encourages customers who have been targeted by JPEX’s promotional activities or have received services from JPEX within Dubai to report their experiences to VARA. This proactive approach enables VARA to gather information and assess the extent of any potential misconduct.
VARA emphasizes its dedication to closely monitoring the situation and taking appropriate enforcement actions against JPEX and individuals found guilty of misconduct. As the regulatory authority responsible for supervising and overseeing virtual asset services in the Emirate of Dubai (excluding the Dubai International Financial Centre), VARA’s alert underscores the importance of regulatory compliance and transparency in the virtual asset industry. Market participants are strongly urged to verify the regulatory status of service providers and exercise caution when dealing with unregulated entities. VARA’s actions reaffirm its commitment to upholding the integrity of the virtual asset market in Dubai.