- New VARA guidelines require enhanced disclaimers on virtual asset ads in the UAE.
- Bonuses tied to crypto promotions must receive approval from VARA.
- The updated rules aim to boost transparency, safety, and consumer protection.
Dubai’s Virtual Assets Regulatory Authority (VARA) has released new marketing guidelines for virtual asset firms, according to a Bloomberg report. The updated guidelines require stronger disclaimers about the risks of cryptocurrency investments.
Starting October 1, companies promoting virtual assets in the United Arab Emirates (UAE) must include a clear warning in their advertisements, stating that virtual assets are volatile and may lose value.
VARA’s Chief Executive Officer, Matthew White, said the updated guidelines aim to ensure that virtual asset service providers (VASPs) operate responsibly.
“We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market,” White noted.
Read also: Dubai Mandates Licensing for Crypto Firms in New Regulatory Rule
Global Regulators Tighten Oversight of Crypto Marketing
This move is part of a broader effort by global regulators to tighten oversight of crypto marketing. In the UK, regulators banned “refer a friend” incentives in 2022, while Belgium now requires crypto ads to include a warning about the risks.
In the UAE, firms offering bonuses or incentives tied to virtual assets must receive compliance approval from VARA. These incentives should not mislead investors or distract them from evaluating the risks.
VARA’s Licensing System to Promote Responsible Operations
In September 2022, VARA launched a specialized licensing system to foster economic opportunities and ensure security in the global virtual assets market, balancing innovation and consumer protection.
Read also: Dubai Regulatory Issues Guidelines for Virtual Asset Marketing
Faisal Zaidi, co-founder and CMO of Crypto Oasis, said the initiative will help companies in the virtual asset sector operate responsibly. Clear regulations will encourage transparent communication and enforce accountability, protecting consumers and investors.
Christian Chalfoun, CTO of Colossal Bit, noted that scams and misleading information have been a problem in the virtual asset space. He said Dubai’s law enforcement practices will improve safety and compliance, not only within the city but also globally.
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