Dubai’s new Virtual Assets Regulatory Authority requires greater clarity and transparency from industry marketers and promoters to protect investors.
As Dubai moves forward with a new licensing scheme for cryptocurrency service providers, local regulators are introducing more marketing and advertising regulations for the industry.
On August 25, the Dubai Virtual Asset Regulatory Authority (VARA), the city’s dedicated cryptocurrency regulator, announced new regulatory guidelines for the marketing, advertising, and promotion of virtual assets on Aug. 25.
Gulf News reported that in these rules, VARA refers to all kinds of access, communication, and advertising, expanding information, awareness, customer participation, investor requests, and others.
The guidelines include all virtual asset-related communications and entities publishing information on Dubai-based media websites, search platforms as well as online and offline publishing channels that target customers within the Dubai market.
In these rules, VARA refers to all kinds of access, communication, and advertising, expanding information, awareness, customer participation, investor requests, etc.
The rules reportedly require all local virtual property service providers (VASPs), including advertising sites, to ensure authenticity and clearly state any advertising intent to avoid misleading potential customers.
VARA notes that the new Minimum Viable Product (MVP) licensing guidelines focus on Dubai Crypto:
“These regulations specifically address marketing and communications activities, ahead of operationalizing the MVP licensees so that any mass-market information dissemination, and consumer solicitation are designed to safeguard community interests.”
As previously reported, Sam Bankman-Fried’s cryptocurrency exchange FTX is one of the first companies to receive an MVP VARA license through its local subsidiary FZE in July 2022. That license allowed FZE to fully manage VASP in the region.
VARA’s recommendations launch Abu Dhabi’s new plans for a blockchain and virtual asset strategy that aligns with the country’s overall economic strategy. In August On January 25, the Abu Dhabi Blockchain and Virtual Assets Committee held its first meeting.
Established in March 2022, VARA Dubai is responsible for the licensing and regulation of all VASPs in the UAE’s special and free zones, excluding the Dubai International Financial Centre. The regulator, known for its ambitious plans to regulate the industry, is buying land in virtual reality world Sandbox in May.
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