Dubai’s Virtual Asset Regulatory Authority (VARA) is imposing more marketing and promotion regulations for the industry, in order to provide clarity, transparency and protect investors.
The city’s specialized cryptocurrency regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), purportedly unveiled new rules on Aug. 25 regarding the marketing, promotion, and advertising of virtual assets.
According to the local news source Gulf News, the VARA made reference to all forms of outreach, communications, advertising, information dissemination, awareness-raising, customer engagement, investment solicitation, and others.
The rules apply to all virtual asset-related communications and organizations that post material on media websites, search engines, and offline and online distribution channels that cater to consumers in the Dubai market.
In order to avoid misleading potential clients, the rules apparently also call for all local virtual asset service providers (VASP), including advertising platforms, to guarantee factual accuracy and clearly state any promotional aim.
According to the VARA, the new regulations are related to Dubai’s license for a minimal viable product (MVP) with a concentration on cryptocurrencies.
“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 was previously mentioned, in July 2022, Sam Bankman-FTX Fried’s cryptocurrency exchange became one of the first businesses to be granted an MVP license by VARA through its local subsidiary FZE. The license allowed FZE to fully run a VASP in the area.
The VARA guidelines were released concurrently with Abu Dhabi’s new ambitions to introduce a blockchain and virtual asset strategy that is consistent with the nation’s broader economic strategy. The Abu Dhabi Blockchain and Virtual Assets Committee convened its inaugural meeting to talk about the plan on August 25.
With the exception of the Dubai International Financial Centre, all VASPs in the special development and free zones of the Emirate are subject to license and regulation by Dubai’s VARA, which was established in March 2022.
The regulator, which in May bought land in the virtual reality universe The Sandbox, is well known for its ambitious intentions for industry control.
