Jai Sahu
Dubai’s Virtual Assets Regulatory Authority (VARA) has revised its marketing regulations as part of a broader framework for Virtual Asset Service Providers (VASPs) in the Emirates. These new rules, effective from October 1, aim to enhance transparency, consumer protection, and prevent misleading information in the rapidly expanding virtual assets sector in Dubai.
Central to these updates is VARA’s “Marketing Guidance Document,” which offers guidelines for VASPs promoting their services in the region. This document helps VASPs ensure that their marketing strategies align with high standards of accuracy, ethical behavior, and transparency.
Regulations Apply to All Virtual Asset Marketers in UAE
The updated regulations are designed to protect consumer interests by preventing misleading information. These rules apply to all entities involved in marketing virtual assets in Dubai, regardless of their licensing status with VARA.
Both licensed and unlicensed entities must adhere to the same marketing standards, ensuring consistency across the industry. The regulations address various aspects of marketing communications, emphasizing clear language and full disclosure to keep consumers well-informed about the risks and opportunities in virtual assets. Ethical marketing remains a core principle, ensuring advertising is both legal and fair to investors and users, according to VARA.
Substantial Fines for Violations
Entities that violate these new marketing regulations may face hefty fines of up to 10,000,000 AED ($2.7 million).
“As the world’s first independent regulator for virtual assets, VARA is committed to creating a regulatory environment that protects consumers while also supporting the growth and innovation of the virtual assets sector,” said Matthew White, CEO of VARA.
“Our updated marketing regulations and the newly issued guidance document demonstrate our dedication to maintaining Dubai’s leadership in digital finance. By offering clear and actionable guidance, we help VASPs deliver their services responsibly, fostering greater trust and transparency in the market.”
During a recent panel at Korea Blockchain Week (KBW2024), Binance CEO Richard Teng commended Dubai’s regulatory framework for digital assets, highlighting innovative approaches in the Middle East, particularly Dubai’s establishment of VARA, which oversees the crypto industry exclusively.