Dubai is pushing out crypto marketing rules to further protect investors
Dubai will soon pursue a new licensing program targeting crypto-space service providers, local regulators by introducing marketing and advertising rules for the industry.
Dubai’s Virtual Asset Regulatory Authority (VARA), a cryptocurrency regulator, had proposed new guidelines for the marketing, advertising and promotion of cryptocurrencies.
VARA has mentioned all forms of outreach, communication together with advertising. This included, among other things, the distribution of information, awareness raising, customer engagement and even investor solicitation.
After the guidelines are issued, local virtual asset providers, including advertising platforms, will be required to maintain factual accuracy along with disclosing any promotional intent so that investors and customers are not deceived.
The aim will be to promote awareness, engage customers and solicit investors, among others. The given guidelines shall cover all kinds of Virtual Asset Providers (VASP).
VARA mentioned,
These regulations address marketing and communications activities, prior to operationalization by the MVP licensees so that any dissemination of marketing information and consumer solicitation is designed to safeguard the interests of the community
Targeting crypto customers in the Dubai market
The rules also reportedly require all local virtual asset service providers (VASPs), including advertising platforms, to ensure factual accuracy and openly demonstrate any promotional intent to avoid misleading potential customers.
VARA had reported that these new guidelines will be linked to Dubai’s crypto-focused Minimal Viable Product (MVP) license, saying that,
The principles are complemented by rigid enforcement standards and penalties for non-compliance that collectively provide market confidence ahead of MVP operations, as it reinforces marketing, data protection and consumer protection laws that are well embedded in the UAE.
There were earlier reports that Sam Bankman-Fried’s FTX crypto exchange was one of the first companies to receive VARA’s MVP license.
This license was granted through the local subsidiary FZE in July 2022. This license has allowed FZE to carry out the operations in the relevant region.
VARA is the world’s only independent digital asset regulator responsible for creating an advanced framework that will facilitate limitless financial opportunities.
In addition, VARA is expected to create a framework without compromising market security.
The regulator was also responsible for licensing and regulating the digital asset market in Dubai and its free zone territories. VARA was established in 2022.
Abu Dhabi’s new strategy for blockchain and virtual assets
The guidelines issued by VARA came after Abu Dhabi’s new plans to launch a blockchain and virtual asset strategy that aligns with the country’s overall economic strategy.
The Abu Dhabi Blockchain and Virtual Assets Committee had held its first meeting to discuss the strategy.
VARA, a regulator known for its future industry regulatory plans, bought land in virtual reality The Sandbox in May.
