- Dubai enhances consumer protection with updated crypto marketing rules, starting October 1, 2024.
- VARA has released guidelines for VASPs to help them comply with the new marketing standards.
The crypto-friendly country of Dubai is stepping up its approach to marketing virtual asset investments as the city’s crypto sector continues to grow. Dubai’s Virtual Asset Regulatory Authority (VARA) has announced new marketing regulations that will take effect on October 1, 2024. This initiative marks the UAE’s first significant move to regulate the promotion of crypto investments.
VARA Strengthening Consumer Protection in Crypto Marketing
The new regulations plan to support the transparency and integrity of marketing practices within the virtual assets domain. They require all entities engaged in marketing virtual assets to stick to principles of accuracy, transparency, and consumer protection, regardless of their licensing status with VARA.
Further, to support this shift, VARA has also released a comprehensive marketing guidance document, which will serve as a crucial resource for virtual asset service providers navigating the marketing landscape.
One key requirement introduced is the necessity for companies promoting digital asset investments to include a disclaimer in their marketing materials. This is part of a broader effort to enhance consumer awareness and protect investors in a rapidly evolving market.
Matthew White, VARA’s CEO, emphasized the authority’s commitment to creating a regulatory framework that safeguards consumers. He also highlighted the importance of encouraging innovation and growth within the virtual asset sector.
Earlier in September, VARA partnered with the Securities and Commodities Authority (SCA). This collaboration allows licensed crypto providers in Dubai to expand their services throughout the UAE. It also facilitates a smoother registration process for companies seeking VARA licenses, enabling automatic registration with the SCA.
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