Crypto Haven Dubai has recently decided to shift gears and tighten the noose when it comes to marketing crypto investments in the country. This is the first such measure from the UAE as its crypto landscape sees rapid growth amid crypto-friendly rules, also attracting a large number of crypto investments.
Dubai Regulator Updates Guidelines on Crypto Investments
In the latest development, Dubai’s Virtual Asset Regulatory Authority (VARA) updated its marketing guidelines for cryptocurrency investments. This requires firms to provide clear risk disclaimers for their advertisements.
Starting next week October 1, virtual asset service providers (VASPs) operating in the United Arab Emirates will have to prominently state that “virtual assets may lose their value in full or in part, and are subject to extreme volatility”.
These rules are part of VARA’s “Marketing Guidance Document,” and will govern other aspects of how VASPs market their services. Furthermore, these guidelines will ensure that firms provide clear, consistent messaging thereby helping them to navigate through Dubai’s regulatory framework confidently. In a historic ruling last month, the Dubai Court allowed companies to pay salaries in crypto.
Additionally, these measures will protect investors by raising awareness of the risks associated with virtual asset investments. Speaking on the development, VARA noted:
“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.”
Crypto Investment Services on the Rise
As we know, investor interest in crypto has surged significantly moving beyond simple trading and investment platforms. As a result, the demand for more sophisticated crypto investment products has been growing in Dubai. Thus, with the new marketing guidelines, VARA seeks to bring a standardized approach for licensed entities to adhere to their messaging. These rules will also be applicable to some of the best exchanges in UAE and Dubai.
VARA offers multiple licenses for entities based on the categories they wish to operate in. Last year, the authority established deadlines for virtual asset service providers (VASPs) to apply for and obtain the appropriate licensing to comply with regulations.
Matthew White, CEO of the regulator told Bloomberg: “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”.
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