The Dubai change aims to standardize messaging across the industry and protect investors by raising awareness of associated risks.
Haven for cryptocurrency investments, Dubai has recently decided to take a different approach and tighten its policies.
Dubai Regulator Updates Guidelines on Crypto Investments
This is the first measure of its kind to come from the United Arab Emirates, which is experiencing a rapid expansion in its cryptocurrency landscape at the same time that it is drawing a huge number of cryptocurrency investments.
In the most recent turn of events, the Virtual Asset Regulatory Authority (VARA) of Dubai has revised its marketing guidelines for investments in cryptocurrencies. To comply with this requirement, businesses must include risk disclaimers in their marketing.
Starting the following week, on October 1, virtual asset service providers (VASPs) that are active in the United Arab Emirates will be required to prominently display the statement that “virtual assets may lose their value in full or in part and are subject to extreme volatility.”
The “Marketing Guidance Document” of the VARA includes a set of guidelines that will govern many aspects of how VASPs offer their services. Additionally, these rules will guarantee that companies give messaging that is both clear and consistent, which will assist them in effectively navigating Dubai’s regulatory system.
Earlier this month, the Dubai Court issued a landmark decision that authorized businesses to pay workers using cryptocurrency. In addition, these steps will protect investors by increasing awareness of the risks associated with investing in virtual assets. VARA made the following observation in response to the new development:
“The updated regulations place a strong emphasis on the accuracy of marketing communications, the avoidance of misleading information, and the protection of consumer interests. They apply to all entities involved in marketing virtual assets or related activities, regardless of their licensing status with VARA.”
“As we all know, investor interest in cryptocurrency has significantly increased, moving beyond simple trading and investment platforms.” Furthermore, as a result of this, the demand for more advanced crypto investment products in Dubai has increased.
Crypto Investment Services on the Rise
Accordingly, the VARA is attempting to bring about a uniform strategy for licensed firms to adhere to their messaging through the implementation of the new marketing rules.
These regulations will also affect some of the most reputable exchanges in Dubai and the United Arab Emirates. Depending on the categories in which it intends to conduct business, VARA provides multiple licenses to that entity.
In order to comply with regulations, the authority set deadlines for virtual asset service providers (VASPs) to apply for and obtain proper licensing. The previous year established these dates.”
VARA is dedicated to creating a regulatory environment that not only protects consumers but also supports the growth and innovation of the virtual assets sector,” said Matthew White, the CEO of the regulator.
