Dubai issues crypto marketing rules to better protect investors
Amid Dubai moving forward with a new licensing program for cryptocurrency service providers, local regulators are introducing additional marketing and advertising rules for the industry.
Dubai’s Virtual Asset Regulatory Authority (VARA), the city’s dedicated crypto regulator, reportedly announced new regulatory guidelines for the marketing, advertising and promotion of virtual assets on August 25.
In the rules, VARA referred to all forms of outreach, communication and advertising, dissemination of information, awareness raising, customer engagement, investor solicitation and others, local news agency Gulf News reported.
The policy covers all virtual asset-related communications and entities that publish information on Dubai-based media websites, search platforms as well as online and offline publishing channels targeting customers in the Dubai market.
The rules also reportedly require all local virtual asset providers (VASPs), including advertising platforms, to ensure factual accuracy and openly demonstrate any advertising intent to avoid misleading potential customers.
VARA reportedly noted that the new guidelines are tied to Dubai’s crypto-focused Minimal Viable Product (MVP) license, saying:
“These regulations specifically address marketing and communications activities, prior to operationalization by the MVP licensees so that all dissemination of mass market information and consumer solicitation is designed to serve the interests of the community.”
As previously reported, Sam Bankman-Fried’s FTX crypto exchange was one of the first companies to receive VARA’s MVP license through its local subsidiary FZE in July 2022. The license enabled FZE to fully operate a VASP in the region.
Related: Singapore MAS investigates crypto firms ahead of new regulations: Report
VARA’s guidelines came alongside Abu Dhabi’s new plans to launch a blockchain and virtual asset strategy that aligns with the country’s overall economic strategy. On August 25, the Abu Dhabi Blockchain and Virtual Assets Committee held its first meeting to discuss the strategy.
Established in March 2022, Dubai’s VARA is responsible for the licensing and regulation of all VASPs in the Emirate’s Special Development and Free Zones with the exception of the Dubai International Financial Centre. The regulator is known for its ambitious industry regulation plans, and bought land in the virtual reality world The Sandbox in May.
