According to a report, VARA has announced regulatory guidelines on crypto assets’ advertising, marketing, and promotion to protect investors.
Worldwide adoption of crypto space has influenced many countries to dive into this space. Many prominent platforms, business industries, and governments have inaugurated crypto openly. Dubai has previously made its foray into the crypto world by issuing the country’s first crypto law. Dubai has turned into an emerging hotspot for crypto lovers as it is legally establishing a road for its crypto community to expand. Dubai has been putting its efforts into framing a regulatory guideline in the country. Now, Dubai’s Virtual Asset Regulatory Authority (VARA) has rolled out marketing, advertising, and promoting guidelines on crypto assets to further expand the country’s crypto ecosystem.
Dubai Legally Welcomes Crypto
Dubai’s regulator of virtual assets, the Virtual Asset Regulatory Authority (VARA), rolled out new regulatory guidelines on marketing, advertising and promotions of virtual assets. According to the report, the guidelines will represent VARA’s mission to structure a legal framework that builds economic opportunities for crypto investors without hampering the market’s security.
According to VARA, the rules encompass all forms of communications, outreach and advertising, dissemination of information, customer engagement, building awareness, investor solicitation, etc. In simple words, the guidelines of VARA will ensure “factual accuracy, explicitly demonstrate any promotional intent, and in no way mislead on the guaranteed nature of their returns.” The rules also apply to all virtual assets related to marketing by any platform using Dubai-based media sites and publishing channels that specifically target users in Dubai. All authorized Virtual Assets Service Providers (VASPs) of Dubai will follow the guidelines.
The VARA mentioned the new guidelines relating to Dubai’s crypto-focused Minimal Viable Product (MVP) license. VARA stated, “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.”
Elaborating on the guidelines, VARA stated, “Guidelines further detail the obligations of Dubai licensed VASPs [virtual assets service providers] and any advertising platforms that are positioning VA [virtual assets] content across traditional and new-age media channels for the Dubai market, to ensure factual accuracy, explicitly demonstrate any promotional intent, and in no way mislead on the guaranteed nature of their returns.”
Dubai Is On Its Way To Become A Crypto Heaven
Considering the potential of the crypto sector and the interest of crypto platforms worldwide, regulations and crypto adoption are becoming regular. The number of institutional investors is leaning towards crypto and has forced the government to build crypto regulatory frameworks. While certain governments are barring crypto by implementing meaningless laws, Dubai gives its crypto fan a different place and top priority.
Remarking on VARA’s latest initiative, Kokila Alagh, founder of KARM Legal Consultants, said, “These regulations will go a long way in ensuring that users have the needed information before making their decisions.” CEOs of different crypto platforms in Dubai seem pretty happy with VARA’s decision. Faisal Zaidi, Co-Founder and CMO of Crypto Oasis, said, “Wide-scale adoption of decentralized technologies requires progressive policy-making.” This regulatory step from VARA will lead other countries to adopt crypto quickly as Dubai is leading the crypto space, and the country is looking for more opportunities to bring to the crypto space in the future.