Dubai regulator VARA bans Islamic coins after investigation into terrorist financing and money laundering

According to sources close to Coinlive, Dubai’s cryptocurrency regulator, the Virtual Asset Regulatory Authority (VARA), has reportedly banned Islamic Coin (ISLM) following an ongoing investigation that revealed million-dollar wallets linked to terrorist financing and money laundering. I lost.

Coinlive has reached out to VARA for comment.

Bored Gen DMCC (BG), the parent company of Islamic Coin, was investigated by VARA in relation to the legal issuance, marketing and distribution of its tokens.

Despite BG’s full cooperation during the VARA review process, the regulator deemed the issues under investigation technical “non-compliance.”

During the review process, BG implemented remedial actions, including enhanced disclosures to ensure market assurance.

However, this appears to have backfired. Transparency exposes wallets used for terrorist financing and money laundering.

VARA’s ban means that BG will not be able to secure approval for ISLM deployment in the Dubai market.

Domestic promotion or access facilitation is prohibited until approval is granted.

This token was also recently listed on Gate.io.

Experts who specialize in studying Hamas’ financial mechanisms point out that cryptocurrencies remain an important resource for the group’s fundraising efforts.

This includes securing funding from across the borders of Gaza and Egypt.

Last October, VARA highlighted that BG lacked the necessary licenses or registrations as a virtual asset issuer, making its activities in breach of the local regulatory framework.

Coinlive previously wrote an opinion piece suggesting that ISLM may have been a major financing element of the Israel-Hamas war.

Related article – What is Hamas’s alternative to Bitcoin?