- VARA has issued restrictions on marketing, advertising, and promotions of virtual assets.
- VARA aims to offer consumer protection in the virtual assets market.
- CTO of Colossal Bit said virtual asset scams were many previously, but the new rule will make the environment much safer.
Dubai’s Virtual Asset Regulatory Authority (VARA), the sole independent virtual assets regulator, has commenced its specialized licensing system. According to a Dubai-based news agency, Khaleej Times, VARA issued regulatory restrictions on marketing, advertising, and promotions of virtual assets throughout Dubai last Thursday to start its Minimum Viable Product (MVP) phase.
The recommendations represent VARA’s goal to offer a forward-thinking framework, enabling borderless economic opportunity while maintaining market security across the global virtual assets market.
The regulation covers marketing and communications operations such that any consumer solicitation and mass-market information distribution will be able to protect the community’s interests. The report noted all types of outreach, communication, and advertising, including awareness-raising, consumer involvement, or investment solicitation.
Kokila Alagh, the founder at KARM Legal Consultants, said,
Marketing and promotions are the first contact points between end users and VASPs. These regulations will go a long way in ensuring that users have the needed information before making their decisions.
Faisal Zaidi, Co-Founder and CMO of Crypto Oasis, added that many organizations have used the UAE to their advantage. But he believes that the recent development will ensure companies in the virtual assets sector act to appropriately and help regulate communications to enforce responsibility, and protect consumers and investors.
Similarly, Christian Chalfoun, CTO of Colossal Bit, said, “We have been suffering in the virtual asset space with many scams and misleading articles and advertisements. But Dubai, well-known for its law enforcement, will help make the environment much safer, and more compliant not only in Dubai but will also spread to the rest of the world.”