{"id":830909,"date":"2025-03-02T08:11:41","date_gmt":"2025-03-02T14:11:41","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/03\/02\/saudi-arabias-web3-alliance-dubai-warns-against-memecoins\/"},"modified":"2025-03-02T08:11:41","modified_gmt":"2025-03-02T14:11:41","slug":"saudi-arabias-web3-alliance-dubai-warns-against-memecoins","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/03\/02\/saudi-arabias-web3-alliance-dubai-warns-against-memecoins\/","title":{"rendered":"Saudi Arabia\u2019s Web3 alliance; Dubai warns against memecoins"},"content":{"rendered":"
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  7. Saudi Arabia\u2019s Web3 alliance; Dubai warns against memecoins<\/li>\n<\/ol>\n<\/div>\n

    Saudi Arabia<\/a> has launched a new Web3 alliance designed to improve the pace of digitization in the Gulf nation, drawing participants from a pool of global and local ecosystem players with streaks of government support.<\/p>\n

    According to a press release report<\/a>, the new association will support the Saudi government\u2019s existing efforts to improve adoption levels for blockchain technology and Web3 solutions<\/a>. Dubbed the Web3 Alliance of Saudi Arabia (WASA), the body has its sights set on moving tech adoption in the country, targeting enterprise and individual utilities.<\/p>\n

    Founding members of the alliance comprise industry heavyweights, including The Sandbox, Outlier Ventures, Animoca Brands, and a group of local blockchain service providers in the country, as well as academics and blockchain experts including Stephan Apel, Wajd Badawi, and Yasser Alobaida.<\/p>\n

    A cursory glance at the statement reveals four cardinal principles guiding WASA in the push to trigger ecosystem growth. For starters, WASA\u2019s primary objective is hosting learning workshops and seminars to educate the general public on Web3 use cases and benefits<\/a> in enterprise applications.<\/p>\n

    The alliance will also roll out best practices for the industry to ensure uniformity among industry players. WASA is expected to provide stakeholders and new entrants with a platform for networking and collaboration by hosting conferences in Saudi Arabia.<\/p>\n

    WASA\u2019s final mission will involve supporting research and innovation in Saudi Arabia, providing avenues for pilot projects, and funding promising studies. <\/p>\n

    The alliance will adopt a decentralized governance model<\/a> made up of an executive committee and a general assembly with extensive voting powers. Keeping to its mantra of Web3 adoption, WASA will use blockchain for its voting decision-making processes while remaining independent from government influence. <\/p>\n

    The official statement confirms that WASA intends to operate as a non-profit and will not earn funds from endorsing blockchain projects. Instead, it will focus its attention on blockchain adoption initiatives, \u201ccreating a neutral ground\u201d for ecosystem growth in the country.<\/p>\n

    Leaning on emerging technologies<\/strong><\/p>\n

    In recent years, Saudi Arabia has made its stance on emerging technologies clear for its digitization objectives. While the government remains skeptical about blockchain use in finance, it has made a play in exploring central bank digital currencies<\/a> (CBDCs) to reduce cash usage and explore cross-border transaction settlement.<\/p>\n

    An improvement in the ease of doing business has seen industry heavyweights set up shop in the country, driving up interest. On the flip side, the government is pitching its tent with artificial intelligence (AI) to drive digitization<\/a> as it seeks to keep pace with the United Arab Emirates (UAE).<\/p>\n

    Dubai\u2019s virtual asset regulator warns consumers against investing in memecoins<\/strong><\/p>\n

    Elsewhere, Dubai\u2019s Virtual Asset Regulatory Authority<\/a> (VARA) has warned consumers about the dangers of investing in memecoins, citing the grim downsides of their funds going all the way to zero. <\/p>\n

    According to a public advisory<\/a>, VARA\u2019s main protest is against promotions involving memecoins<\/a> circulating in Dubai\u2019s cyberspace, with the regulator noting a flagrant violation of its rulebook by issuers. While memecoins have made their mainstream debut, regulators around the globe continue to view the asset class with a great deal of skepticism.<\/p>\n

    For VARA, memecoins are \u201chighly speculative and volatile assets\u201d and are susceptible to market manipulation and rug pulls. It warns that without intrinsic value, memecoins leverage \u201cmisleading\u201d advertisement strategies and social media hype to create a buzz.<\/p>\n

    VARA\u2019s statement urges investors to keep their guard against promises of juicy returns by meme coin promoters, noting that consumers can suffer large-scale financial losses. VARA adds that the losses are typically triggered by sharp price collapses, fraud, and liquidity shortages from low trading volumes and wash trading.<\/p>\n

    Digital assets issuers must seek the consent of VARA before promoting their memecoins to Dubai\u2019s residents. VARA\u2019s marketing regulations<\/a> require issuers to give a clear warning that investing in digital assets poses a significant financial risk, while influencers are expected to label promotions on their social media posts.<\/p>\n

    The public advisory contains the threat of enforcement action against defaulters, noting that it will move to begin blocking memecoin platforms from operating in the region. There is the threat of fines and imprisonment for persistent defaulters to VARA\u2019s marketing rulebook, with the broader United Arab Emirates adopting a similar stance.<\/p>\n

    \u201cConsumers and investors should be aware that access to memecoin platforms may be restricted without prior notice, and it is advisable to take necessary measures to safeguard personal financial security,\u201d read the statement.<\/p>\n

    Memecoins to the moon<\/strong><\/p>\n

    As 2025 rolled in, claims that memecoins were dead faltered following the rollout and spike in the valuation of $TRUMP in January, triggering new optimism for the asset class. Exchanges are enjoying a cash windfall from renewed interest in memecoin, with Coinbase\u2019s (NASDAQ: COIN<\/a>) latest figures<\/a> underscoring the point.<\/p>\n

    In the U.K., regulators are clamping down<\/a> on the unauthorized promotion of memecoins, brandishing fines and jail times for offenders. The U.K.\u2019s Financial Conduct Authority (FCA) warnings confirm that investors in memecoins will not be covered by the Financial Services Compensation Scheme.<\/p>\n

    Watch: Web3 is natural progression of technology<\/p>\n